Indonesia Market Summaries 4 June 2013

DBS agrees to extend purchase deadline to 1 August 2013

DBS Group Holdings agrees to extend the deadline with Temasek for the purchase of 40% stake in Bank Danamon by 1 August 2013, two-months extension. This is the second time the acquisition deal deadline is extended. Comment: By regulation, DBS can only take up to 40% stake in Danamon and will have to wait for at least one and a half years before asking from the central bank to acquire more stake, providing they pass the GCG and financial condition/health status. We believe the group needs to wait for the MAS decision on reciprocal agreement between Singapore and Indonesia to open the banking industry to foreign banks, which will enable Indonesian state banks to open branches in the city-state country. Meanwhile the minority investment in Bank Danamon will lower DBS’ CAR under the Basel III accord.

Jababeka (KIJA IJ) partners with Plaza Indonesia (PLIN IJ) on mixed used development

Through its subsidiary, PT Grahabuana Cikarang, KIJA partners with PLIN in developing a mixed used for the mid-to-upper class costing approximately Rp4tn. The two companies will create JV companies PT Jababeka Plaza Indonesia (Ownership: 30% PLIN, 70% KIJA) and PT Plaza Indonesia Jababeka (Ownership: 70% PLIN, 30% KIJA) where the former will develop 4ha for residential and the latter develop 12ha for mall, hotel, and office. Funding will come from internal cash and bank loans. KIJA expects the project to take 6 years to complete since groundbreaking, which is expected to be next year. (Bisnis Indonesia)

Bakrie Toll Road sold for Rp140bn

ELTY managed to sell PT Bakrie Toll Road for Rp140bn to PT Karya Prima Investama on May 27. The proceeds will mostly be used to pay down debt. (Bisnis Indonesia)

Erajaya Swasembada revealed key dates on dividend payment

Erajaya Swasembada (ERAA) sets the cum and ex date for the dividend payment on June 25 and 26, while payment would be made on June 28. At the current price, its Rp60/share dividend payment (40% payout) gives a 1.8% yield.
for Indonesia Market summaries 4 June 2013