Property Summaries for Summarecon and Alam Sutera

Summarecon to develop a new township in the Greater Jakarta Area

SMRA is planning to develop a new township in the Greater Jakarta area this year where the exact location is still undisclosed. The Indonesia Market Summaries predict that the new township will have an area of 200-300ha and targets middle to upper class segment. (Bisnis Indonesia)

Alam Sutera increases their CAPEX allocation by Rp2.5tn

ASRI announced that they are increasing their CAPEX allocation to Rp3.2tn which increases by Rp2.5tn, which they will use for land acquisition and project developments. (Investor Daily)

Modernland and the Lippo Group on April 9 2013

Modernland booked Rp648bn 1Q13 marketing sales

In Indonesia Market Summaries as of 1Q13, MDLN has booked an on-track marketing sales of Rp648bn which is 24% of the company’s full year target of Rp2.6tn. More than half of the sales came from Modern Gateway, which is the landbank sold to ASRI, which contributed 61% to total marketing sales. The second major contributor is from Modern Cikande Industrial Estate which contributed Rp133bn or 20% to total marketing sales. From MDLN’s residential projects, contribution still came from Kota Modern (8%) and Modernhill (6%). (Company release)

The Lippo Group to bring 3 of their affiliated companies public in 2Q13

The Lippo Group is planning to list 3 of their affiliated companies public in 2Q13 with a value of at least Rp1.8tn. The three companies are PT Multipolar Technology, PT Bank Nationalnobu, and PT Siloam Hospital. PT Multipolar Technology, which is the direct subsidiary of MLPL in the IT sector, has yet to disclose the total value of their IPO but is expected to be less than Rp1tn. Bank Nobu is targeting an IPO proceed of Rp800bn with an expected free float of 40%. Meanwhile, Siloam Hospital targets an IPO proceed of Rp100bn with an expected free float of 25%. (Bisnis Indonesia)

Indonesia Investment News 1 April 2013

Six banks have to improve efficiency

Bank Indonesia issued the benchmark ratio for Operating Expenses to Operating Income (BOPO), which is based on the type of banks. BUKU 1 banks (capital of Rp30tr) 65-68%. Failure to meet the standard will affect the banks’ ability to expand their branch. So far there are six BUKU 3 and 4 banks that need to improve their performance based on the 2012 results: BNI (BUKU 4, BOPO 71.0%), BTN (BUKU 3, 80.7%), BII (BUKU 3, 87.7%), Mega (BUKU 3, 76.7%), OCBC NISP (BUKU 3, 78.9%) and Panin (BUKU 3, 78.1%). 

ASRI USD bond to be USD235mn at 6.95% interest

Alam Sutera disclosed today that their global bond will value USD235mn and have an interest rate of 6.95% p.a. Proceed usages as follows: 37% to pay back bank loans, 53% to pay for land acquisition from MDLN, Wisma Argo Manunggal office building acquisition, and other land acquisition, and 10% to develop residential and commercial clusters as well as for working capital. (Investor Daily)

PGAS plans to acquire 7 gas blocks in this year

PGAS allocates around US$500 mn up to US$1 bn to acuire 7 gas blocks this year. Previously in Indonesia Market Summaries, PGAS through its subsidiary PT Saka Energy Indonesia has acquired 20% participating interest in Sierra Oil Services Ltd in Ketapang Block with acquisition value of US$75mn and acquiring 30% participating interest in Bengkanai with acquisition value of US$27mn. (Kontan).