News For March 27 2013 in brief

The second electricity tariff increase to be effective 1 April 2013

The electricity tariff for household and industry will be raised by another 5% starting 1 Apr13 as part of 15% increase for the whole 2013. The raise will affect above 1,300VA subscribers. (Bisnis Indonesia)

BII right issue

Bank Internasional Indonesia (Not rated) – will conduct a 1-for-12 rights issue at Rp320 to strengthen its capital base. A maximum total of 4.69bn new shares, representing 7.67% of the enlarged capital, will be issued to raise Rp1.5tr which will lift its total CAR to around 14.5% from 12.9% in December 2012. Maybank as the major shareholder (97.29%) will exercise their rights. Ex-date for the rights issue will be on 13 May with the rights tradable between 17 May to 23 May 2013. (Bisnis Indonesia)

BNI to sell life insurance

Bank BNI is reported to sell up to 40% of BNI Life Insurance and they expect the valuation of up to US$2bn for the life insurance business (US$800m for 40%), a level that is far too high for a company with Rp2.6tr assets as of December 2012. For Indonesia Market Summaries, in addition to the sale of its life insurance business, they also plan to seek shareholders’ approval to conduct a Rp4.5tr haircut on bad debts, starting 2013, that is made possible since the constitutional court cleared the way for the state banks to restructure or sell their NPLs late last year.  (Jakarta Post)

Agus Martowardjojo has been chosen as governor of Bank Indonesia

The parliament finally approved Agus Martowardjojo as Governor of Bank Indonesia (BI) for 2013-2018 with a voting mechanism. 46 member voted Agus as BI Governor from total 54 votes. 7 votes rejected Agus Marto whereas 1 was abstained. (Bisnis Indonesia)