Indonesia Market Summaries 16 April 2013 Part 1

Bumi Resources recorded sales volume increase of 20.6% in 1Q13

In Q1, BUMI claimed that they have sold 19.1mt of coal which shows a 20.6% growth yoy supported by a 23.7% yoy growth in coal production. The company claimed that this is their highest Q1 production since BUMI was started since heavy downpour usually disrupts production early in the year. BUMI also managed to lower their stripping ration from 10.8x to 9.5x this year. However, BUMI still suffers from ASP plunge as they recorded a 1Q13 ASP of USD73/ton decreasing from USD92.7/ton last year. BUMI claimed that they expect a USD75/ton ASP this year; thus, they are relying more on sales volume to improve their performance for the year. (Kontan)

Comments: Indonesia Market Summaries for BUMI in the first quarter of 2013, BUMI’s sales volume is 25% to our full year forecast vs the usual 20-22%, making the performance a strong one in our view due to inventory carry over from 4Q12 sales.

Coal production is expected to pass 400mt in 2013

The national coal production this year is expected to pass 400mt, 4.4% growth yoy, as production already reached 93mt in Q1. The national coal producer association (APBI) claimed that rising demand from Japan, South Korea, Thailand, and Taiwan will help boost production. Low rank coal production already grew by 20% due to demand from local power plants. APBI stated that coal ASP is still at USD88/ton as of April 2013, but he is confident that it will reach USD100/ton by the end of the year. (Bisnis Indonesia)

Summarecon will build a new township in Bandung

Aside from the township they are planning to build in the Greater Jakarta area, SMRA is also planning to build a new one in Bandung with an area of 200ha. The exact location is also yet to be disclosed but it is currently in the land clearing process and sales will start in 2-3 years. The target market will still be mid-to-upper income segments. As Indonesia Market Summaries posted, the SMRA has prepared more than Rp1tn for the land acquisition in both locations. (Kontan)

Ciputra Development expects 1Q13 revenue growth of 170%

For Q1 this year, CTRA is expecting revenue of Rp1.5tn which is 170% higher compared to the same period last year supported by landed housing sales. In 1Q13, CTRA launched two new residential projects in Medan and Semarang with an area of 100ha each. The company targets sales of Rp1.2tn from the two projects, where the company invested Rp200bn for the construction. (Bisnis Indonesia)