The Commission VIII has approved social compensation program required for the government to hike subsidized fuel price
The parliament’s Commission VIII has approved the government’s social compensation programs proposed under the 2013 Revised Budget Plan. The program will cover Rp66.6tn fund and is allocated to, among other programs, rice for the poor (Rp21.9tn), temporary direct aid (BLSM, Rp11.6tn), education aid (BSM, Rp12tn), and basic infrastructure (Rp17.5tn).
To refresh, the government requires approval of such compensation program to execute subsidized fuel price hike. Mind that the approval is still in commission level; to be official the notion must pass the parliament’s plenary. That said, the Vice Minister of Finance Mahendra Siregar gave hint that the price may rise in 17 Jun13 post approval of the 2013 Revised Budget. In a side note, the parliament has also allowed 2013.
Banking industry - new ruling for bank under intensive and special supervision
Bank Indonesia issued a bank regulation #15/2/PBI/2013 concerning bank status and the follow up actions required, especially for those under the intensive and special supervision of the central bank. Banks under the intensive supervision (criteria: CAR>8% but does not meet the CAR based on the bank risk profile, Tier 1 CAR does not meet BI’s regulation, reserve requirement >5% but does not meet RR based on risk profile, net NP>5%, health status of 4 or 5 or health status is 3 but corporate governance is 4) are given one year to improve their condition including writing off bad debts, limitation on management salary, freezing payment on subordinated bonds, improve capital and do not distribute dividend.
Indofood Sukses Makmur and CBP announced Rp185 and Rp186 dividend respectively
INDF announced that they will be paying out Rp185/sh of dividend, while ICBP will be paying Rp186/sh. INDF has prepared Rp1.63tn for the dividend payment, implying 50% payout ratio, to be paid out on August 2. Meanwhile, ICBP has prepared Rp1.08tn, also 50% payout ratio, to be paid on July 31. (Investor Daily)
for Indonesia Market Summaries 30 May 2013
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