Market Synopsis for 3 April 2013

SMCB seeking Rp1tn to finance their Tuban II plant

Holcim Indonesia is currently seeking for Rp1tn to fund their second plant in Tuban, East Java where the company is aiming for bank loans. The company admits that funding will come from bank loan, ECA (export credit agency), and internal cash. SMCB claimed that the company needs more than USD300mn to construct the new plant which will be able to add capacity by 1.7mt by 2015. With the addition of 1.7mt each from the new Tuban I and Tuban II plants, SMCB will have a capacity of 12.5mt within 2 years. (Bisnis Indonesia).

Bank Mandiri (Rp9,850; Not covered) - AGM results

Bank Mandiri’s shareholders appointed Budi Sadikin as the new CEO, replacing Zulkifli Zaini, who has ended his 10-year term as the BoD member this year. Mr. Sadikin is Bank Mandiri’s Director of Micro and Retail Banking since 2006 when he moved from Bank Danamon. In addition to the change in top management, the bank declared a 30% dividend payout ratio from 2012 net profit, translating into Rp199.3/share. There is no change in the bank’s business strategy which is geared towards the wholesale transactions, retail payments and retail loans. (Bisnis Indonesia, Jakarta Post).   

Pertamina is expected to bear the cost for rationing program of subsidized fuel

The government mentioned that the funds to finance the rationing program of subsidized fuel will likely come from Pertamina. As a return, the government is planning to cut some amount of Pertamina’s dividend payment which is obliged in the 2013 government budget (Investor Daily).