Indonesia Today's Market and Business April 11 2013

Realization of capital spending reached 5.6% in 1Q13

The realization of government’s capital spending only achieved 5.6% of Rp184.4tn targeted in APBN 2013. Furthermore, this realization figure is lower than the same period of 2012 which reached 6.71%. The head of government’s fiscal policy, Bambang P.S. Brodjonegoro, mentioned that if the government could optimize the disbursement of capital post, then there would be an additional contribution of 0.2ppt – 0.3ppt to economic growth (Bisnis Indonesia).

Kawasan Jababeka prepares Rp9tn to develop CBD

KIJA is preparing Rp9tn to develop a CBD on a land of at least 30ha wide where the first phase will be to develop a residential estate on a 16ha land within the next 12 years with a total investment of Rp4.5tn. Meanwhile, the development of the CBD itself will take approximately 20 years in 2-3 phases. KIJA is currently studying the feasibility of the project where the result is expected to be out by Q1 next year. Aside from offices, the CBD will also have shopping centers, apartments, recreational areas, and town house. (Bisnis Indonesia)

Cikarang Property prices boost as new toll access is opened

For Indonesia Market Summaries news, KIJA and LPCK, in their partnership, has opened a new toll access at KM34.7 of the Jakarta-Cikampek toll road to the residential and commercial areas in Cikarang. The two companies have allocated Rp300bn for land clearing and construction for the toll access where each company pays 50% of the total cost. With the new toll access, KIJA and LPCK expect land ASP to increase by at least 20%. (Kontan, Bisnis Indonesia)

Summarecon gained Rp600bn loan for working capital

SMRA received an Rp600bn working capital loan from Bank Mandiri with a single digit interest rate and a tenor of 7 years. The company was seeking loan earlier this year to finance the development of their hotels in Bali which is expected to cost Rp700bn. Aside from hotel, SMRA is also eyeing for a township project which they claimed to be their expertise. (Bisnis Indonesia)

Agung Podomoro to payback Rp400bn debt

APLN is planning to pay off their Rp400bn syndicated debt using the proceeds from the issuance of their Rp2.5tn bond. The company expects the bond to be issued by June 2013. (Bisnis Indonesia)

Ciputra Development reported a consolidated 1Q13 marketing sales of Rp2.9tn

CTRA reported a consolidated 1Q13 marketing sales of Rp2.9tn which is 28.2% of their full year target. Outstanding marketing sales performance is shown by CTRS who book Rp1.3tn or 41.4% of their full year target. On the other hand, CTRP is still lagging and only booked Rp142bn marketing sales which is 8.1% of their full year target. Product mix wise, contribution still come mostly from houses (56%) and shop houses (24%). Meanwhile, geographic wise the largest contribution comes from Sumatra (37%) and the Greater Jakarta area (32%). (Company release)

Consumers’ confidence remains stable along Mar13

BI’s consumer confidence index was stable last month than Feb13, as the index was unchanged at 116.8. The relative steady number was due to higher optimism among consumers about the economic condition for the next 6 months despite the index for current economic condition eased owing to lower confidence about job availability (Bank Indonesia).

Palm Oil Reserves in Malaysia Drop Most in Two Years but CPO price still drop 1%

Palm oil stockpiles in Malaysia, the world’s second-largest producer, fell the most in more than two years to a seven-month low in March as exports gained for the first time in five months, according to official data. Inventories shrank 11 percent to 2.17 million metric tons last month from 2.44 million tons in February, the steepest monthly drop since January 2011, the Malaysian Palm Oil Board said today. The decline exceeded the median estimate for a 7 percent drop to 2.27 million tons in a Bloomberg survey. (Bloomberg)

Comment: although after the announcement of palm oil Inventory decrease higher than consensus expectation (which should be bullish factor on CPO price), the CPO price decreased by 1%. Indonesia Market Summaries assume to this matter as a sign that CPO price would decrease further in 2H13 when CPO production ramp up and palm oil inventory back to increasing trend.