Indonesia Market Summaries 20 May 2013

Infrastructure update: Indonesia Investment Coordinating Board will introduce and market 24 infrastructure projects worth US$12.7bn.

Indonesia Investment Coordinating Board (or BKPM) has decided that 24 infrastructure projects will be prioritized this year, and will be marketed to private and foreign investors this year. Among the largest projects are Cileunyi-Sumedang-Dawuan (Cisumdawu) toll road (US$1,016mn), Soekarno Hatta – Manggarai train project (US$2,000mn), Maloy International Port (US$2,130mn) and Karawa Hydro Power (US$1,336mn). Total value of the project that will be offered in 2012 may reach US$12.7bn.

These projects are considered feasible by the governments and the construction planning has been completed by the government. Financing of these projects will be funded by private-public partnership scheme.

No hedging regulation for now

The government has yet to impose hedging regulation for its external debt as the downgrade rating risk remains relatively high. Specifically, if it does use such hedging mechanism, any downgrade rating from specific agencies will result a penalty paid by the government to the counter party (Bisnis Indonesia)

MSCI Indonesia Index changes - 20 new stocks are in

MSCI announced its semi-annual index review for the MSCI Equity Indices in which there will be 20 new Indonesian stocks to be included in the two indices: 3 in Global Standard Index and 17 in Global Small cap Index. Of the Global Standard Index, Lippo Karawaci (moved from small cap index), Bumi Serpong Damai and Indofood CBP Sukses Makmur are to be included and for the Small Cap Index, in addition to the 17 new counters, there will be four deletions including Lippo Karawaci which will be moved to the Standard Index. The changes will be implemented on 31 May 2013.

for Indonesia Market Summaries 20 May 2013