BKSL to buy back PT Bukit Jonggol Asri from ELTY

BKSL to buy back PT Bukit Jonggol Asri from ELTY

According to local news, Sentul City plans to buy at most 20% stakes in PT Bukit Jonggol Asri (BJA) from Bakrieland with a transaction value of approximately Rp300-500bn. The news’ source admitted that BKSL is still negotiating regarding the number of shares they are planning to buy back as well as the transaction value. As of now, ELTY is still the major shareholder of BJA, owning 51% while the rest is owned by BKSL. Should the transaction go through, BKSL will become the major shareholder with 69% stakes. BKSL is said to use standby bank loans and internal cash for the buy back. (Investor Daily)
Comments: As of FY12, BKSL has a net cash of Rp76bn and net gearing of 11%, which is at the lower end leading us to believe that they still have room for debt.

ELTY failed to expedite their USD155mn bond payment

Bakrieland was unable to fulfill their plan to expedite the payment of their USD155mn bond issued by their subsidiary in Singapore, BLD Investment Pte Ltd. The unsecured guaranteed equity linked bond was issued in March 23, 2010 and has a tenor of 5 years, but the company claimed that they were planning to pay it back by March 23, 2013. ELTY claimed that they have been restructuring the bond with the holders since February 2013. The bondholders are currently starting a coordinating committee to discuss the issue further. (Kontan)

Presidential decree for inter-province monorail project update

Vice Transportation minister, Mr. Bambang Susantono, stated that Presidential decree for inter-province monorail project will be issued by end of this semester. The decree will then be a legal basis for monorail project execution in Jabodetabek. He also added that the decree may include Adhi Karya (ADHI) appointment as the coordinator for public transportation projects. Consisted of Len Industri, PT Industri Kereta Api, Telekomunikasi Indonesia, Jasa Marga and Bank Mandiri, ADHI consortium will be appointed directly to execute the ~45km monorail projects (Kontan)

Budget disbursement remains slow along 1Q13

Government’s budget disbursement was still sluggish in 1Q13, only reaching 5.63% of total government target of Rp184.4tn. The realization figure was lower 1% - 2% than the same period of 2012. Thus, the Ministry of finance is concern if the budget disbursement could not be improved going forward, then most of it will likely be disbursed during the end of the year (Kontan).