Indonesia Market Summaries 25 September 2013

• Astra Group through PT Marga Mandala Sakti (MMS) targeting Balaraja Serpong toll road. Subsidiary of PT Astra International Tbk (ASII, Rp6.400, NEUTRAL, TP Rp7.300) targeting 40 km toll road by forming a consortium with Grup Sinarmas and Grup Kompas Gramedia.
  
  The joint venture will have a 70:30 ratio of debt compared to the proportion of cash that will be used. MMS focus on the Trans Jawa toll road Mojokerto-Kertosono along 40.5 Km which will be completed in September 2014. The company is targeting revenue Rp 600 billion this year (+20% YoY), while net profit rose just 10% targeted amid rising labor costs. (Investor Daily)
• SUN's Auction managed to get requests Rp 25,78 trillion yesterday. In the auction, the government absorb the demand and issue Rp 12 trillion from Rp 8 trillion indicative target. Throughout the quarter III/2013 government has sold securities valued at Rp 77,76 trillion of the auction, above the target of Rp 72,9 trillion. Since the beginning of the year, the government has issued securities valued (Surat Utang Negara / SUN) at Rp 179, 18 trillion. (Kontan)
• Issuer of Grup Sinar Mas, PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM, Rp1.750) mortgaged 35.29% shares of its subsidiary - PT Oki Pulp & Paper Mills - to get a loan from China Development Bank Corp. The new shares are owned by TKIM since July 11 are pledged for a loan of U.S. $ 3 billion that will be used to build tissue and Oki Pulp paper mill. (Kontan)
• PT Dayamitra Telekomunikasi (Mitratel) were given a backdoor listing option on the stock exchange by its parent company, PT Telekomunikasi Indonesia Tbk (TLKM, Rp 2.150, under review). Backdoor listing is A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company.
  
  The option was given with the portion of release shares held by TLKM up to 49% and open procedure for redemption through the exchange of shares and cash. (Investor Daily) 
• Contract of Work (Kontrak Karya / KK) of PT Koba Tin was decided not to be extended. Management of tin mine land that abandoned by Koba Tin handed over to PT Timah Tbk (TINS, Rp1.470). This decision established on 18 September, after having been extended twice with a total duration of 5 months. A total of 75% stake in Koba Tin owned by Malaysia Smelting Corp and the rest owned by TINS. (Bisnis Indonesia)

for Indonesia Market Summaries 25 September 2013