The Insider Stories

Bank Woori buys 33% stake in Bank Saudara

2012-06-12T09:33:00.001+07:00

PT Bank Woori Indonesia, a subsidiary of South Korea-based Woori Bank Korea, today announced its plan to take over 33% stake or 764.40 million shares in PT Bank Himpunan Saudara 1906 Tbk (SDRA).

Bank Woori, that will acquire Bank Saudara shares from Arifin Panigoro and PT Medco Intidinamika, aims to use internal cash flow.

"The take over plan has been signed on June 8 2012 and expected to get agreement from Bank Saudara's extraordinary shareholders meeting on July 27 2012," said Bank Saudara in an announcement today.

Bank Woori Indonesia is 95.18% owned by Woori Bank Korea and PT Bank Danamon Indonesia Tbk with 4.82% stake.

Post the acquisition, Arifin Panigoro, founder and controlling shareholder in PT Medco Energi Internasional Tbk, will own 27.27% stake in Bank Saudara, Medco Intidinamika holds 3.68%, PT Medco Duta owns 3.24%, and public shareholders with 32.81%.

Disclosure: No position at the stock mentioned above.

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Itacha Resources buys Sarana Marine

2012-06-11T10:54:00.001+07:00

Coal mining company PT Itacha Resources, a joint venture between Anthoni Salim and Glenn Yusuf, announced that Itacha will acquire 400 shares in PT Sarana Marine Perkasa, located in Samarina, Kalimantan.

However, the announcement has not clearly declared the acquisition price. Itacha Resources has mandated former executive of PT Indosiar Karya Media Tbk (IDKM) Phiong Phillipus Darma as a member of Steering Committe at Itacha Resources, in East Kalimantan. Phillipus is one of the most trusted executives of Salim Group.

He was involved in the acquisition of PT Sebuku Iron Lateritic Ore, an iron ore mining company located in South Kalimantan. In addition to his current roles, Phillipus has previously held senior positions with PT Indocement Tunggal Prakarsa, the second largest cement company in Indonesia. Phillipus is also non-executive director Atlantic Ltd.

Itacha is s a company engaged in the coal mines to ownership of several mining concessions in Berau and East Kutai (Wahau). Ithaca is an operating holding company with three principal businesses: mining consulting and marketing services, coal infrastructure and investment in coal mine.

Who is Sarana Marine Perkasa?

Sarana Marine is a company that owe to coal mining company PT Perdana Karya Perkasa Tb (PKPK). In December 2010, Perdana Karya recorded receivable of Rp2.88 billion to Sarana Marine Perkasa.

Disclosure: No position at the stock mentioned above.

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Soedono Salim & First Pacific Company

2012-06-11T09:58:00.000+07:00

Liem Sioe Liong (Soedono Salim or people call him with Om Liem) has passed away on 3.08 pm yesterday in Singapore at 97 years old.

Om Liem, which is very close to former President Soeharto, was a founder of Salim Group. He initiated his business in 1969 with his buddies, dubbed The Gang of Four, Sudwikatmono, Djuhar Sutanto, and Ibrahim Risjad. They founded CV Waringin Kentjana. Om Liem took the helmet as Chairman, while Sudwikatmono, founder and owner of Indika Group (PT Indika Energy Tbk/INDY) as CEO. Many articles about his strong effort in the business you can find via Google.

But, what is the last position of Soedono Salim at his business conglomerate? Soedono Salim is an advisor of First Pacific Company Limited, a holding company of Salim family that is listed at Hong Kong Stock Exchange.
Born in China, Om Liem serves as First Pacific's Chairman from 1981 until February 1999 when he assumed his current titles. He serves as chairman of the Salim Group.
With his current position at the advisor of First Pacific, Om Liem is one of Indonesia's businessmen who can maintain his business at the hot spot. First Pacific's assets are more attractive than other conglomerations in Indonesia.
First Pacific has main investments in telecommunications, infrastructure, consumer food products, and natural resources. Their main businesses are the most lucrative sectors in Indonesia. In the past 8 years to 2011, First Pacific has seen its gross asset value rise with a compound annual growth rate of 27% to US$7.88 billion at the end of 2011 from US$1.28 billion in 2003.

First Pacific controlled 25.8% stake in Philippine Long Distance Telephone Company (PLDT).
PLDT is the leading telecommunications service provider in the Philippines. Its shares are listed on the Philippine Stock Exchange and its American Depositary Receipts are listed on the New York Stock Exchange.

First Pacific controls 59.1% stake in Metro Pacific Investments Corporation (MPIC). Metro Pacific is a Philippine-based, publicly-listed, investment management and holding company focused on infrastructure development.

In PT Indofood Sukses Makmur Tbk (INDF), an Indonesia listed company, First Pacific owns 50.1% stake.
Indofood is a maker of instant noodle, CPO, and fluor mills. Its consumer branded products subsidiary PT Indofood CBP Sukses Makmur Tbk (ICBP) and agribusiness subsidiaries PT Salim Ivomas Pramata Tbk (SIMP) and PT PP London Sumatra Indonesia Tbk (LSIP) are also listed in Indonesia Stock Exchange. In LSIP, Salim family has partnership with Sariaatmadja family, who owns and runs television statitions such as Surya Citra Media, Indosiar, and O Channel.

First Pacific also owns 31.3% stake in Philex Mining Corporation (Philex). Philek is a Philippine-listed company engaged in exploration, development and management of mineral and energy resources in the Philippines.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

2012-06-11T09:24:00.001+07:00

On the heels of posting the worst weekly performance of 2012, the markets zoomed higher this week on hopes policymakers may be willing to take action to buoy ailing world economies.

The Dow Jones Industrial Average on Friday last week, as quoted by foxbusiness.com, rose 93 points, or 0.75%, to 12554, the S&P 500 rose 10.7 points, or 0.81%, to 1326 and the Nasdaq Composite jumped 27.4 points, or 0.97%, to 2858.

For the week, the Dow jumped 3.6%, the S&P 500 gained 3.7% and the Nasdaq rallied 4%.

With little in the way of economic data released this week, market participants have been focused on a stream of commentary from global central banks. However, much of the news has come as a disappointment. The European Central Bank and Bank of England both held off on making changes to their monetary policy, while commentary from Federal Reserve Chairman Ben Bernanke was interpreted as suggesting the central bank isn't quite ready to unleash another round of easing. Still, traders remained hopeful that easing may be on the way in the near future.

Meanwhile, China slashed its benchmark lending and deposit rates. How about Indonesia stock market today? Bisnis Indonesia quotes recommendations from several brokerages:

Reliance Securities:

Jakarta Composite Index (JCI) today may move sideways with limited range within 3,375-3,859. Several stocks to monitor: BWPT, KRAS, BDMN, and RALS.

e-Trading Securities:

The JCI today may tend sideways with consolidated sentiments. Investors are advised to do short term trading. Several stocks to watch: CPIN, HRUM, JSMR, and SMGR.

Panin Sekuritas:

The JCI today may move mixed with downtrend possibility. We see that the index movement will be shadowed by European nations issues. The support and resistance levels are within 3,790-3,850.

Sinarmas Sekuritas:

Technically, the index may continue further decline within the range of 3,800-3,850. Several stocks for day trading are GGRM, HEXA, KLBF, and JSMR.

Disclosure: No position at those stocks mentioned above.

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Darma Henwa to spend US$120 mio capex

2012-06-08T14:41:00.002+07:00

Indonesia's second largest coal contractor PT Darma Henwa Tbk (DEWA) plans to spend US$120 million capital expenditure (capex) this year.

"This year, we target US$80 million-US$120 million capital expenditure [capex]," said Director Wachjudi Martono at DEWA as quoted by Kontan.co.id today.

According to him, the capex will be fulfilled by Darma Henwa's suppliers and other financial institutions. "Multifinance will support half, while the remaining is from local banks." Darma Henwa aims to transport coal of 16.4 million tons this year, two folds from 7.5 million tons last year.

"For KPC and Arutmin are expected to reach 15 million tons, while Berau Coal contract will contribute 1.2 million tons-1.5 million tons," he said.

Darma Henwa is optimictic to achieve 100 million bank cubic meters (bcm) of overburden removal from 53 million bcm last year.

Acquisitions story

DEWA were also in frenzy acquisitions last year. However, the actions have raised questions. The story of the takeovers began on May 22 2007 when Darma Henwa acquired Prove Energy Investments, a British Virgin Islands-based SPV, from Zurich Asset International, a Seychelles-based company, worth US$93.88 million.

Prove was a controlling shareholder of 66.7% stake in coal marketing company dubbed Coal Vista Resources, another Seychelles-founded company. Coal Vista's office has the same address with Zurich Asset at Oliaji Trade Center, first floor, Victoria, Seychelles.

Then, Prove Energy on July 2011, disposed 100% stake in Coal Vista to Thionville Financier. If you check in the 2011's audited financial statement filed by Darma Henwa to Indonesia Stock Exchange, still, there was not sufficient information about the business of Prove Energy after it sold Coal Vista.

One month after the sale, Darma Henwa on August 11 2011, bought 100% stake in Corfield
Investments Limited from Joyful Sky Ltd at a certain price equals with its book value. Darma Henwa's financial statement did not clearly mention about the price of the takeover. The financial statement mentioned that Darma Henwa controlled 100% stake in Corfield that owned assets worth US$30.92 million. Please subscribe or login to read the remaining story.

Disclosure: No position at the stock mentioned above.
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Delta Dunia to issue 570.39 mio new shares

2012-06-08T10:25:00.001+07:00

Indonesia second largest coal mining contractor PT Delta Dunia Makmur Tbk (DOID) aims to hold nonpreemptive rights by issuing 570.39 million new shares of 7% of its capital paid in to employees and its directors and PT Bukit Makmur Mandiri Utama (BUMA).

According to Delta Dunia's announcement, the company will issue those new shares in two stages. The first stage will be distributed on July 16 2012 and July 15 2013 with exercise price of Rp494 a share, while the second stage will be held on July 15 2014 and July 15 2015 with exercise price based on the average market price of 25 trading days prior to the announcement of extraordinary of shareholders meeting at the latest on June 30 2014.

If the non-preemptive rights issue could be realized during 2012-2016, dilution effect would be 6.54%. Senior employees will be offered with 162.97 million new shares and Delta Dunia's management and BUMA will be allocated the remaining shares.

Disclosure: No position at the stock mentioned above.

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Bentoel weighs 3 options for bonds refinancing

2012-06-08T10:04:00.002+07:00

Cigarette maker PT Bentoel Internasional Investama Tbk (RMBA) is weighing three options of bonds refinancing worth Rp1.35 trillion maturing in November this year.

Director Chrisdianto Tedjawidjaja said the three options are bank loan facility, institutional loan facility, and rollover.

"If we issue the bonds, the rate is estimated between 7%-8% as our previous rating was AAA," he said in a public expose yesterday as quoted by Bisnis Indonesia today.

Bentoel issued rupiah denominated bonds in November 2007. The outstanding bonds currently are Rp1.35 trillion with fixed rate of 10.5%.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

2012-06-08T09:43:00.002+07:00

A Fitch Ratings executive said Thursday that the firm would likely downgrade US debt if the federal government does not get its fiscal house in order.

Speaking at the firm's global banking conference in New York, Fitch sovereign group managing director Ed Parker said "the US does not have a credible fiscal consolidation plan" and that "if we don't see one after the election, I would expect a downgrade."

Fitch rates the US at triple-A but put it on negative outlook earlier this year, and Parker's comments were a reiteration of the firm's position. Fitch has the US, UK and France on negative outlook because of high debt-to-gross-domestic-product-ratios.

Parker noted that the three countries, plus Germany, have the top credit ratings but are also the most heavily indebted nations.

"There is a limit to how high these government debt levels can go," Parker said as quoted by Foxbusiness.com.

Regarding the future of the eurozone, Parker said that in the event of a Greek exit from the eurozone, all member countries in the union would be put on negative ratings watch and placed under review. He also said that the peripheral countries of Italy, Spain, Ireland, Portugal and Cyprus, all currently on negative outlook, would be downgraded. "The big concern is potential contagion to other countries," Parker said.

A broad rally that was fueled by China's surprise rate cut ran out of steam in late-session action as traders interpreted signs that the Federal Reserve may not be ready to offer additional monetary stimulus.
The Dow Jones Industrial Average climbed 46.2 points, or 0.37%, to 12461, the S&P 500 fell 0.14 point, or 0.01%, to 1315 and the Nasdaq Composite slumped 13.7 points, or 0.48%, to 2831.
The Dow had been up close to 140 points at the highs of the session, only to close out the day with modest gains. Four out of ten S&P 500 sectors ended in the red, led by telecommunications companies. On the other side of the spectrum, utilities posted the best performance.
The People's Bank of China cut its benchmark lending and deposit rates by 0.25-percentage point in the hopes of keeping the economic expansion there from cooling down too quickly. Additionally, the PBOC said that it will allow the deposit rate to climb by 110% of the benchmark and the lending rate fall to 80% of the benchmark.
How about Indonesia stock market today? Bisnis Indonesia provides recommendations:

Panin Sekuritas:

Today, Jakarta Stock Exchange (JCI) may move mixed with downtrend possibility within the support and resistance level at 3,810-3,865.

Henan Putihrai:

Candlestick shows bearish meeting lines, signaling taking profit may occur. The support and resistance levels are within 3,875-3,900. Several stocks to monitor: INDF and UNVR.

e-Trading Securities:

Today, the trading may run sideways. Investors are recommended to do short term trading with buy on weakness or sell. Several stocks to watch: SMGR and INTP.

Disclosure: No position at the stock mentioned above.

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Bakrie Telecom bond payment remains uncertain

2012-06-06T18:43:00.005+07:00

PT Pemeringkat Efek Indonesia (Pefindo) assigned its ratings of idBB for PT Bakrie Telecom Tbk (BTEL) and its maturing Bond I/2007 of RpR650 billion due September 4, 2012.

Pefindo still places the ratings on Credit Watch with Negative Implication, which reflects the raising refinancing risk for the bond since the company’s readiness to pay the maturing bond remains uncertain.

This rating assignment is to comply with the regulation, which requires the rating assignment 90 days before the bond maturity. The progress of the company’s refinancing program and right issue plan remain the same with the one when we assigned the rating on May 28, 2012.

Established in 1993, BTEL provides wireless telecommunication services under the Esia brand. In providing its telecommunication services, the operator uses CDMA 2000 1x technology on 800 MHz frequency. As of March 31, 2012, BTEL is owned by PT Bakrie & Brothers Tbk (17.6%) and public (82.4%).

Disclosure: No position at the stock mentioned above.

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Sarana Menara & non preemptive rights

2012-06-06T14:22:00.000+07:00

Telecommunication tower operator PT Sarana Menara Nusantara Tbk (TOWR), controlled by Djarum's Hartono family, reported that it will issue 102 million new shares in non preemptive rights (or 10% of enlarged capital).

The price is set at Rp14,798 per share, determined by the average price 25 days prior to the announcement. However, Sarana Menara's Corporate Secretary Arif Pradana, in official statement filed to Indonesia Stock Exchange (IDX), today said the company has not any information regarding to investors who will subscribe those new shares during the rights issue. Those investors will be determined by Sarana Menara.

Q1 performance

Sarana Menara, an affiliated of cigarette maker Djarum Group that is controlled by Hartono family, reported a 50.29% drop in net profit for the first 3 months of this year as a result of other losses of Rp62.22 billion.

Sarana Menara posted Rp75.19 billion net profit in 1Q 2012 from Rp151.26 billion in 1Q 2011. Operating profit increased 37.51% to Rp269.76 billion from Rp196.17 billion, while gross profit rose 34.38% to Rp319.80 billion from Rp237.98 billion.

TOWR booked a 30.47% increase in revenue to Rp481.50 billion from Rp369.05 billion.

Sarana Menara is controlled by Hartono family via PT Tricipta Mandhala Gumilang and PT Caturguwiratna Sumapala with 24.55%, and public shareholders with 49.90% stake.

What do you think about the corporate secretary statement? Do you believe that Arif Pradana does not know anything about the rights issue?

Disclosure: No position at the stock mentioned above.

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Reswara seals contract from Guangzhou Huaneng

2012-06-06T13:59:00.000+07:00

PT Reswara Minergi Hartama, an integrated coal company and subsidiary of Hamami's PT ABM Investama Tbk (ABMM), has secured a coal sales contract of 500,000 metric tons from Guangzhou Huaneng Trading Co Ltd with estimation of delivery period in June to December 2012.

In a press statement published today, the contract was signed on Monday this week in Bali by Director Feriwan Sinatra at PT Tunas Inti Abadi, subsidiary of Reswara and Director Li Mei Xing at Guangzhoue Huaneng.

The contract from Guangzhou Huaneng is Reswara's fourth contract this year. With these contract, Reswara has managed to secure four contracts for coal sales amounting to 3.8 million metric tons or 68% of the total sales target of 5.5 million metric tons this year.

"We are delighted to secure up to 68% of the sales target in the middle of this year, amidst the slowdown of demand in the past few months," said President Director Harry Asmar at Reswara Minergi.

Guangzhou Huaneng is an importing coal company from Indonesia to China since 2010 and operates in line with growing demand for coal in Indonesia.

Reswara Minergi is a subsidiary of ABM Investama that gas coal reserves of 550 million metric tons from four mining concessions in South Kalimantan and NAD Aceh. Produced coal by PT Tunas Inti Abadi and PT Media Djaya Bersama are currently marketed through Reswara.

Disclosure: No position at the stock mentioned above.

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J.P. Morgan names Sugirin as head of treasury

2012-06-06T13:40:00.001+07:00

J.P. Morgan has today announced that it has appointed Michael Sugirin as Head of Treasury Services for Indonesia.

Sugirin will be responsible for driving J.P. Morgan’s Treasury Services business in Indonesia, focusing on extending the firm’s cash management, trade finance and liquidity management solutions to multinational and large domestic corporates as well as financial institutions.

He will be accountable for further developing the firm’s strategic growth plans in Indonesia, along with sales, product development and end-to-end client service.

Reporting regionally to Abdul Raof Latiff, J.P. Morgan’s Head of Treasury Services for ASEAN and in-country to Haryanto T. Budiman, Senior Country Officer (SCO) for Indonesia, Sugirin’s role will allow J.P. Morgan in Indonesia to deepen its focus on clients, making it simpler and faster for clients to do business in an increasingly competitive and complex global environment.

“We are delighted to welcome Michael to the ASEAN team. His appointment highlights the importance of the Indonesian market to the firm’s Treasury Services business. With 15 years’ experience in transaction banking, he will be instrumental in further building a franchise that delivers
exceptional value to our corporate and financial institution clients in Indonesia,” said Latiff in a press statement today.

Sugirin joins J.P. Morgan from Deutsche Bank, where he most recently led the trade finance and cash management corporate business in Indonesia. During his career, he has worked across Jakarta, Singapore and New York, and has held a range of sales and product roles across cash management and
trade finance.

Disclosure: No position at the stock mentioned above.

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Tunas Baru scouts Rp500 bio profit in 2012

2012-06-06T09:51:00.000+07:00

Palm oil producer PT Tunas Baru Lampung Tbk (TBLA) is scouting a Rp500 billion net profit this year, a 18.76% higher than Rp421 billion last year.

The profit increase, as quoted by Kontan today, will be underpinned by revenue growth. TBLA estimated to post Rp4 trillion revenue or a 7.18% increase from Rp3.73 trillion last year. "When all factors are in stable position, we are optimistic to achieve our target," said Vice President Director Sudarmo.

To fulfill the target, Tunas Baru will plant 4,000 hectares-5,000 hectares of land with investment of Rp200 billion-Rp300 billion this year.

Disclosure: No position at the stock mentioned above.

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Trisula International IPO set at Rp250-Rp300

2012-06-06T09:31:00.002+07:00

A new debut in the primary stock market dubbed PT Trisula International Tbk revealed that it has already tied up with an anchor buyers, signaling its initial public offering won't deter some problems.

Trisula International aims to sell 300 million shares within the range of Rp250-Rp300 a share, Kontan daily said today.

President Director Lisa Tjahjadi said several investors are ready to absorb the primary shares of Trisula International with commitments to buy half of those shares. "They are local players," he said without mentioning their identities. During the IPO, Trisula, that is underwritten by PT Sinarmas Sekuritas, will grab Rp90 billion cash. Trisula plans to use the proceed to expand its business by opening of 350 sale spots in the next 5 years.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

2012-06-06T09:21:00.003+07:00

The Dow ended the day modestly higher on the back of a report showing the service sector expanded more quickly than expected last month, coming as a rare bright spot amid a sea of gloomy economic data.

The Dow Jones Industrial Average, as quoted by foxbusiness.com, gained 26.5 points, or 0.22%, to 12128, the S&P 500 climbed 7.3 points, or 0.57%, to 1286 and the Nasdaq Composite rose 18.1 points, or 0.66%, to 2778.

The Institute for Supply Management's gauge of service-sector activity rose to 53.7 in May from 53.5 in April. Economists were expecting a reading of 53.5. Readings above 50 indicate expansion while those below 50 point to contraction. This strong reading comes on the heels of a weak factory orders report released earlier in the week and bleak jobs data revealed last week.

"While the soft employment report will be front and center of FOMC members' thoughts ahead of the June meeting, the tone of the ISM surveys in May ... should blur the debate on whether further policy easing is currently necessary," Peter Newland, an economist at Barclays Capital, wrote in a note to clients.

Indeed, the Federal Reserve has repeatedly said it sees the economy growing at a moderate pace despite the recent headwinds.

The Group of 7 industrial nations held a conference call on Tuesday about the increasingly gloomy state of many of the world's biggest economies. Growth in the U.S. and China appears to be slowing down, while Europe's economy is under heavy pressure from the debt crisis there.

How about Indonesia market today? Bisnis.com provides recommendations:

e-Trading Securities:
Today, Jakarta Composite Index (JCI) may move within the range of 3,653-3,789. Several stocks could be monitored such as LPCK, AISA, ANTM, and GZCO.

Panin Sekuritas:

The JCI may move mixed with limited decrease. The support-resistance level is within the range of 3,680-3,750.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

2012-06-05T09:33:00.001+07:00

The markets kicked off the week little changed as traders assessed the recent stream of data suggesting the U.S. economic recovery may be stalling and the heavy losses taken last week.

The Dow Jones Industrial Average, as quoted by foxbusiness.com, yesterday fell 17.1 points, or 0.14%, to 12101, the S&P 500 rose 0.14 point, or 0.01%, to 1278 and the Nasdaq Composite rose 12.5 points, or 0.46%, to 2760.

The markets were thrashed last week, wiping out the Dow's gains for 2012 and throwing the broader S&P 500 to the brink of correction territory. It was the fourth week of losses in five weeks for the blue-chip average. The slide was sparked by renewed concerns that growth in the U.S. and China may be slowing down, while Europe's economy appears to be contracting at an increasing pace.

Traders in Asia got their first chance to react to the retreat in American and U.S. markets on Monday. The Japanese Nikkei 225 sold off by 1.7% and the Chinese Hang Seng tumbled 2.8%.

Meanwhile, U.S. Treasury yields found some relief on Monday after plummeting to record lows last week as traders sought out only the safest asset classes. The 10-year yield rose 0.060-percentage point to 1.527%,

The docket of economic data was fairly light on the day. Orders for U.S. factory goods fell 0.6% in April from March, according to a report from the Commerce Department. Economists were expecting a rise of 0.2%. While the report is a lagging indicator, it may play into second-quarter economic growth forecasts of investment banks.

Commodities markets were mixed. The benchmark crude oil contract traded in New York gained 75 cents, or 0.9%, to $83.98 a barrel. Wholesale New York Harbor gasoline climbed 0.52% to $2.67 a gallon.

In metals, gold fell $8.20, or 0.51%, to $1,614 a troy ounce.

How about Indonesia stock market today? Bisnis Indonesia provides recommendations:

e-Trading Securities:

Today, Jakarta Stock Exchange may move within 3,618-3,730 with several stocks for short term trading such as ANTM, BBRI, BKSL, BUMI, and PTBA.

Henan Putihrai:

The JCI is estimated to continue its drop with strong support level at 3,597 and resistance at 3,693. Several stocks to monitor: JPFA and BBCA.

Sinarmas Sekuritas:

Tecnically, the JCI may continue to fall within the range of 3,618-3,670.

Disclosure: No position at the stock mentioned above.

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Thohir family buys Adaro shares at Rp167 billion

2012-06-04T17:24:00.001+07:00

PT Trinugraha Thohir today reported that it has purchased 104.64 million shares in coal miner PT Adaro Energy Tbk (ADRO).

Adaro's Corporate Secretary Devindra Ratzarwin, in an official disclosure filed to Indonesia Stock Exchange, said Trinugraha Thohir, owned by Thohir family, has spent Rp167.42 billion in cash to buy those shares or at Rp1,600 a share. The purchase was made on June 1 2012 with an investment purpose.

As of March 2012, PT Adaro Strategic Investments controlled 42.91% stake in Adaro Energy, Garibaldi Thohir (Adaro' president director) owned 6.15% stake, Edwin Soeryadjaya (president commissioner) owned 4.25%, Theodore Permadi Rachmat (vice commissioner) owned 2.21%, Sandiaga Uno owned 1.98%, Subianto, Andre J. Mamuaya, and Chia Ah Hoo owned 1.30%, 0.02%, and 0.01% stakes, and public shareholders held 40.17% stake.

Disclosure: No position at the stock mentioned above.

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Borneo Energi 1Q profit drops 75% on finance charge

2012-06-04T16:45:00.002+07:00

Coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN), that is controlled by Indonesian businessman Samin Tan, suffered a 75.01% drop in net profit in the first quarter of this year on the back of a surge in finance charge.

Borneo posted US$11.96 million net profit in 1Q 2012 from US$47.86 million. The company was burdened by a US$18.41 million finance charge, a surge from US$104 in 1Q 2011.

Operating profit also tumbled 47.74% to US$31.34 million from US$59.97 million, while gross profit fell 39.92% to US$46.68 million from US$77.69 million.

Borneo Energi posted a 9.25% decrease in net sales to US$122.61 million from US$131.11 million. PT Republik Energi & Metal owned 70.21% in Borneo Energi and public shareholders hold 29.78%.

Disclosure: No position at the stock mentioned above.

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Tunas Baru Lampung to sell Rp750 billion bonds

2012-06-04T12:35:00.004+07:00

CPO producer PT Tunas Baru Lampung Tbk (TBLA) plans to sell Rp750 billion fixed rate bonds in July this year. In a prospectus published today, Tunas Baru's 5-year bonds have been assigned idA by PT Pemeringkat Efek Indonesia.

The company also mandated PT CIMB Securities Indonesia and PT Mandiri Sekuritas as the lead underwriters. However, the prospectus does not provide sufficient information about the proceed usage.

As of December 2011, Tunas Baru, that is controlled by PT Sungai Budi with 28.66% stake and PT Budi Delta Swakarsa with 25.09% stake, recorded short term bank loans of Rp750.29 billion. Tunas Baru is led by President Director Widarto and President Commissioner Santoso Winata, while Sungapi Budi is led by Director Widarto and Commissioner Santoso Winata.

Operational performance
Tunas Baru managed and owned 54,392 hectares of palm oil plantations consisting of 40,333 hectares of mature areas and 14,059 hectares of imature plantations. Those plantations are located at Terbanggi Besar, Padang Ratu, Menggala, Pakuan Ratu, Bawang Sakti, Sungai Sidang, Labuan Batin, Talang Gunung, Wiralaga Pontianak, and Bayuasin.

Manufacturing segment contributed 97% to the company's consolidated revenue and the remaining came from plantation segment.

About 70% of Tunas Baru's total sales was contributed by export markets and the domestic market made the remaining.

Disclosure: No position at the stock mentioned above.

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Budikwanto Kuesar steps down from Bukit Makmur

2012-06-03T18:25:00.000+07:00

President Director Budikwanto Kuesar at PT Bukit Makmur Mandiri Utama (BUMA), a wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), has stepped down from his position to pursue other interest. His step down will put into effect from May 31 2012.

BUMA is Indonesia's second largest coal mining contractor. Hagianto Kumala, President Director of DOID, will assume the possition of BUMA's president director with effect from June 1 2012.

Delta Dunia has already started the search process for a permanent replacement for the post of BUMA's president director and will announce further developments in due course.

Operational performance
As of April 2012, Delta Dunia boosted its overburden removal of 5.27% to 105.9 million bank cubic meter (bcm) from 100.6 million bcm. However, coal production volume slightly decreased 1.92% to 10.2 million tons from 10.4 million tons.

Disclosure: No position at the stock mentioned above.

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Mitrabahtera subsidiary secures contract from Berau Coal

2012-06-03T15:28:00.000+07:00

PT Mitra Alam Segara Sejati, a subsidiary that is 60% owned by PT Mitrabahtera Segara Sejati Tbk (MBSS), has secured a 5 year contracts of coal transhipment service at Muara Pantai, East Kalimantan, from PT Berau Coal.

Mitra Alam is responsible to provide services on unloading coal from barges into vessels using floating crane. Minimum guaranteed tonnage is 3 million metric tons for the first year and 3.5 million tons a year for the 2 and 5 year.

Up to the finalizations date of the March's financial statement, Mitra Alam is still in the final process to commence its operation.

Mitrabahtera also secured US$8 million loan facility on February 17 from Indoensia Eximbank. The loan facility is used to procure three sets of tugboat and barge with credit terns in 72 months since the first drawdown date.

The loan is also pledged by three sets of tugboat and barges which are also finance by the bank and were partially drawan in April 2012.

Q1 performanceMitrabahtera reported a 71.06% increase in net profit in the first quarter of this year as revenue rose. MBSS posted a US$9.99 million in Q1 2012 from US$5.84 million in Q1 2011, while gross profit increased 36.38% to US$14.17 million from US$10.39 million. Mitrabahtera's revenue in Q1 2012 rose 42.66% to US$33.61 million from US$23.56 million.

Disclosure: No position at the stock mentioned above.

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Indika closes Multi Tambangjaya takeover

2012-06-03T14:58:00.001+07:00

PT Indika Indonesia Resources, a subsidiary of PT Indika Energy Tbk (INDY), has closed a 85% stake takeover of coal company PT Multi Tambangjaya Utama (MTU) worth US$136 million.

In an announcement filed to Indonesia Stock Exchange, the takeover deal was signed on May 30 2012. Indika Capital Investments Pte Ltd, a subsidiary of Indika Resources, also acquired 85% stake of coal marketing of MTU.

MTU is a bituminous thermal coal (6,500 to 7,200 Kcal/kg adb) and coking coal (7,800 kcal/kg adb) mining company based in Central Kalimantan holding a CCOW third generation expiring in 2039 covering approximately 24,970 hectares concession.

Independent party analysis of the coal deposit on 10 blocks, based on USGS standard, indicates 75.2 million tons resource and 40.6 million tons mineable reserve of high quality thermal and coking coal. Further plans for comprehensive drilling and detailed exploration of the concession area are in place to reconfirm the reserve base.

Who is Multi Tambangjaya?

Founded in 1989, Multi Tambangjaya is based in Jakarta and has a project area in Central Kalimantan, Indonesia. MTU has established in situ resources of bituminous coal and a track record of exploration success in the Barito basins. MTU has been awarded a concession of nearly 25,000 hectares by the government of the Republic of Indonesia.

MTU was acquired in 2007 by Asia Thai Mining, a global company operating in coal business through Asia. Since then, MTU has rapidly grown to become a recognized coal producer, its maximum capacity will reach 4.8 million tons per year at its final stage; mainly steam coal.

MTU became a fully fledged mining company by acquiring underdeveloped properties in established basins and has improved its logistic by building its own road and port. MTU believes that its demonstrated operational and technical expertise, combined with its excellent reputation and strong community relationships throughout Indonesia, make it well positioned to continue to grow its reserves and production.

As at May 31, 2010, MTU had 300 employees, whom mostly were Indonesian. MTU creates employment and business opportunities for local people, particularly in remote locations where there are few other opportunities for economic development, and ensures that skills, know-how and technology are transferred to Indonesian nationals.

MTU production has been delegated to our local contractor PT Thailand Bara Pratama, a subsidiary of Italian-Thai development PCL (ITD).
ITD is a global leading company fully supporting MTU through Asia Thai Mining Ltd. Strong of more than 30 years of experience in the mining industry and 50 years the construction business.
In 2000 ITD was awarded the 38 million tons coal mining project by the Electrical Generating Authority of Thailand (EGAT) for the Mae Moh Lignite Mine Phase 5 in Thailand. This was followed in 2002 with a 10 years contract for overburden removal and coal extraction

Disclosure: No position at the stock mentioned above.

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Fitch Ratings upgrades Arpeni Ocean to CC

2012-06-03T14:38:00.004+07:00

Fitch Ratings has upgraded PT Arpeni Pratama Ocean Line Tbk's (APOL) Long-Term Foreign and Local Currency Issuer Default Ratings to CC from RD (Restricted Default), its USD senior unsecured notes rating to CC from C and its National Long-Term Rating to CC(idn) from RD(idn).

The Recovery Rating on the US$ notes is 'RR6'. Simultaneously Fitch has withdrawn all of the above ratings as they are no longer considered by the agency to be relevant to its coverage.

The upgrade follows Arpeni's successful debt restructuring in Q112. However, Arpeni's credit profile remains weak and its tight liquidity position, in particular, is a risk.

Disclosure: No position at the stock mentioned above.

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S&P puts Bakrie Plantations rating on credit watch

2012-05-31T18:00:00.003+07:00

Standard & Poor's Ratings Services (S&P) said today that it had placed its CCC+ long-term corporate credit rating on Indonesian plantation company Agri International Resources Pte. Ltd. on CreditWatch with negative implications.

S&P also placed CCC+ issue rating on the company's guaranteed US$150 million senior secured notes due July 15, 2012, on CreditWatch with negative implications. AI Finance B.V., a wholly owned subsidiary of Agri International, issued the notes.

At the same time, the rating agency placed our CCC+ long-term corporate credit rating on Indonesian plantation company PT Bakrie Sumatera Plantations Tbk (UNSP) on CreditWatch with negative implications.

"We placed the ratings on CreditWatch because UNSP is taking longer than we had expected to finalize a loan to repay the US$150 million guaranteed notes of its subsidiary Agri International," said Standard & Poor's credit analyst Vishal Kulkarni. "A further delay would increase the risk of default by Agri International. Due to a cross default clause in UNSP's syndicated bank loan documents, a default on Agri International's notes would tantamount to a default by UNSP."

Bakrie Plantations has management control over Agri International. Both Agri International and UNSP have "weak" liquidity, as our criteria define the term.

"We expect Agri International's sources of liquidity to likely fall short of its uses over the next six months. We anticipate that UNSP's ratio of sources of liquidity to its uses will remain less than 0.5x in 2012 and 2013."

The company aims to resolve the CreditWatch placements within the next 2 weeks.

"We could lower our rating on UNSP as well as on Agri International by multiple notches to CC if UNSP fails to arrange for the loan during this time."

"At this point, an upgrade of either BSP or Agri International is unlikely even if UNSP refinances the upcoming notes," said Mr. Kulkarni. This is because of the companies' tenuous operating efficiency and weak cash flows. In addition, UNSP has sizable debt amortization.

Disclosure: No position at the stock mentioned above.

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Kalbe Farma acquires Hale International at Rp100 billion

2012-05-31T14:24:00.001+07:00

Pharmaceutical company PT Kalbe Farma Tbk (KLBF) has agreed to acquire PT Hale International with consideration price of Rp100 billion.

Kalbe Farma entered into conditional sale and purchase agreement to takeover 100% stake in Hale International, a healty drink maker, on May 30 2012. The takeover is aimed to strengthen portfolio products of healty drink segment. According to Kalbe Farma, the takeover closing is expected in the coming months.

Disclosure: No position at the stock mentioned above.

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