Indonesia Market Summaries 13 May 2013

Credit growth is slowing, as anticipated

Bank Indonesia deputy governor Perry Warjiyo mentioned that 1Q13 credit growth of 22.2% yoy is slower compared with 24.9% yoy in the same period last year, in line with the easing in economic growth. Such slowing occurred in all segments, namely working capital (23.7% yoy in 1Q13 vs. 25.2% yoy in 1Q12), investment (23.2% yoy in 1Q13 vs. 30.6% yoy in 1Q12), and consumption (18.9% yoy in 1Q13 vs. 20.5% yoy in 1Q12). However, the slowdown is anticipated; Bank Indonesia has previously revised its 2013 credit growth target to 21-22% (Bisnis Indonesia)

Surya Semesta’s NRC to conduct share swap with Saratoga Capital

PT Nusa Raya Cipta (NRC), SSIA’s construction arm, is planning to go through a share swap with Saratoga Capital before their IPO. Saratoga will acquire 7% of shares in NRC, while NRC will acquire 7% of Saratoga’s shares in the Cikampek-Palimanan toll road for Rp130bn.The reason for the share swap is still undisclosed, but the swap should be good for NRC since it raises the company’s stakes in the toll road. NRC targets total new contract of Rp4tn this year implying 48% growth yoy. (Kontan)

Comments: SSIA through NRC currently indirectly owns 20.5% stakes in the Cikampek-Palimanan toll road.

• NRC owns 100% of PT Karsa Sedaya Sejahtera (KSS)
• KSS owns 45.62% of PT Baskhara Utama Sedaya (BUS)
• BUS owns 45% of PT Lintas Marga Sedaya (LMS), who is a concession holder of the toll road

Bank Danamon - 30% dividend payout for 2012

Bank Danamon’s shareholders agreed to distribute 30% of 2012 net profit as cash dividend, translating into Rp125.58/share. Cum- and ex-date will be on 30 May and 31 May with payment date on 19 June 2013. Based on this payout ratio, the current yield is 1.9%.

MEDC discover gas reserve in Matang-1, Aceh

Medco E&P Malaka discover gas reserve in Matang-1, Aceh. President Director of MEDC estimates Matang-1 may produce gas of 25 MMscfd. (Bisnis Indonesia)

Indonesia Market Summaries 13 May 2013