Indonesia Market Summaries 3 September 2014

PT Newmont Nusa Tenggara (NNT) agreed on terms of mining contract. NNT agrees six principal to renegotiate mining contracts with the government. With the renegotiation, Newmont will be allowed to resume exports to 200,000 tonnes of copper concentrate (USD 400 million) by the end of 2014. (Investor Daily)

PT Agung Podomoro Land Tbk (APLN, Rp 369, BUY, TP Rp430): Moving to the north. Indra Wijaya, Vice President Director of APLN, to discuss reclamation project run by APLN.

For land reclamation (including infrastructure and CSR), the company believes that the pre-sales of Pluit City can cover the initial load. We assign a BUY recommendation back to the main catalyst permits the issuance of project execution. (Mandiri Sekuritas)

Jababeka-Pelindo II to prepare capex IDR 580 billion. PT Kawasan Industri Jababeka Tbk (KIJA, Rp 292) and PT Pelabuhan Indonesia II (IPC II) prepared a capital expenditure (capex) of USD 50 million (IDR 580 billion) to develop 40-50 hectares Special Economic Zones (SEZs) in Tanjung Dimples, Banten .

The funds will specifically be used to build the ship terminal and supporting infrastructure and other facilities property. KIJA and  IPC will have a 50% part each in the project. In addition to the IPC II, KIJA also with PT Garuda Indonesia Tbk (GIAA, Rp 434) and PT Jasa Marga Tbk (JSMR, Rp 6.350, NEUTRAL, TP Rp 6.200) in developing Tanjung Dimples. (Bisnis Indonesia)


PT Semen Indonesia Tbk (SMGR, Rp 16.450, BUY, TP Rp 18.300) to enter the property business. SMGR plans to enter the property and infrastructure sectors. For the property, the company will cooperate with PT Wijaya Karya Tbk (WIKA, Rp 2.855, BUY, TP Rp 2,300) to create a new joint venture subsidiary. Currently, the company already has 200 hectares of land in Gresik, East Java. (Investor Daily)


PT Hexindo Adiperkasa Tbk (HEXA, Rp 3.680, BUY, TP Rp 4,250) targets to reduce its bank loan. HEXA plans to decrease the number of its bank debt from USD 66 million to USD 7 million in March 2015 Until July, HEXA still owes USD 48.4 million.

A lower position in bank debt will make the company's financial statements are healthier and lower interest expense. In the 2013 financial statements, the company's interest expense portion was 2.8% of total net income. (Bisnis Indonesia)

for Indonesia Market Summaries 3 September 2014