Friday, April 26, 2013

Indonesia Market Summaries 26 April 2013

Semen Indonesia gave loan to Thang Long

Quoted in the local news that SMGR is providing loan facilities to their subsidiary in Vietnam, Thang Long Cement, an amount of US$41mn or equivalent to Rp398bn. The loan will bear an interest rate of LIBOR+4.5% per year with a tenor of 12 months. The loan will be used for working capital and others based on the two companies’ agreement. (Bisnis Indonesia)

Bumi Serpong Damai is planning for a placement

BSDE is seeking approval from their shareholders for a private placement. The company is said to let go 10% to a strategic investor where, if approved, have a time limit of two years to find one. BSDE has yet to disclose who the investor would be or what the proceeds of the placement would be used for. However, they said that the company is just opening up an opportunity for a strategic investor who has interest in BSDE. (Kontan)

JPFA will spend up to Rp800bn to buy back shares

Japfa Comfeed Indonesia (JPFA IJ) plan to conduct buy back share with total budget of Rp800bn within 18 months period. Company will appoint Bahana Securities as the main broker for this corporate action. Company will seek approval from EGM on June 12, 2013. This is part of company’s commitment to optimize the excess free cashflow to increase the shareholder’s equity value by improving the ROE and EPS. (Bisnis Indonesia)

Dual subsidized fuel price impact to bank performance

A dual subsidized fuel price, a scenario currently echoed by the government to implement, will slow credit growth and third party fund while increase non-performing loan (NPL), Bank Indonesia research noted. In such case, initial credit growth of 22.5-24.3% is expected to slip to 21.7-23.6%, third party fund from 17.5-18.5% to 17-17.9%, and NPL to 1.6-2.1% mainly coming from construction sector (Kontan)

Bird Flu Warning

Indonesia Market Summaries from the government, Indonesia has issued a travel warning and tightened security of Chinese visitor entrants. There seems to be a new plague of Bird Flu that is plaguing the Chinese mainland. This new form of bird flu is classified as H7N9 type and is stated to be deadly and prone to human transmission. As of yesterday, the disease has infected 108 people, of which 22 died. Although there hasn’t been any flags on the disease being spread to Indonesia, Soekarno-Hatta has tightened security for preventive measures.

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