PT Bank Mandiri Tbk will form a consortium of state-owned banks to obtain a target loans for 3 monorail projects

PT Bank Mandiri Tbk will form a consortium of state-owned banks to obtain a target loans amounting to IDR 8,4 trillion to support the construction of three monorail project.

"Bank Mandiri will hold PT Mandiri Securitas to form a consortium of state-owned banks in the financing of this project," said Director of Corporate Banking of Bank Mandiri, Fransisca Nelwan Mok, following the signing of a preliminary agreement launching Mock Up Monorail, in Madiun, East Java, on Monday. According to her, the proposed banking consortium will be approved by the project implementing consortium consisting of PT Bank Mandiri as leader of a consortium of lending banks, PT Adhi Karya, PT INKA, PT LEN, PT Angkasa Pura II, PT Pelindo, PT Telkom, PT Jasa Marga.

"First, We have to form the agreement from the internal and this is still under discussion and it could be multi-year, not in a year's time," she said.

In line with Fransisca, President Director of PT Adhi Karya, Kiswo Darmawan said that 30 percent of the source of funding comes from internal SOEs consortium and 70 percent comes from SOEs bank loans. "The funds will come from cash investments and loans companies, with each serving 30 percent and 70 percent," he said.

The Three monorail project to be built are Jakarta Link Transportation (JLT) in the Greater Jakarta area, Automatic Container Transporter (ACT) in Tanjung Perak, Surabaya and Automatic People Mover (APM) at Soekarno-Hatta Airport. For monorail that will be operated in the Greater Jakarta area requires a fund of IDR 7 trillion. As for the APM and the ACT require funds amounting to IDR 2,5 trillion each.

Indonesia Market Summaries, 6 May 2013

Indonesia Market Summaries 16 April 2013 Part 2

Surya Internusa boost commercial property business

SSIA is boosting their commercial property business by expanding their Graha Surya Internusa office building which would cost the company Rp1.5-1.8tn. The Indonesia Market Summaries found that this company is planning to add another tower at Graha Internusa which will add the building size to 80,000sqm from 20,000sqm now. Expansion is expected to start in January 2014 and will be funded using internal cash and external financing. The office building will then change its grade to a grade A from grade B and the average rental rate will rise from USD10/sqm to USD17-18/sqm. (Investor Daily)

Nissan seeks 67%yoy growth in East Java sales

PT Nissan Motor Indonesia aims to increase the monthly sales in East Java from around 600 units in FY12 to 1,000 units this year, implying a 67%yoy growth. Anton Wijaya, its regional manager for East Java, Bali, Lombok, and Sulawesi, expects rising sales to be supported by the opening of new dealerships this year. Initial monthly sales target would be about 700 units before ramping up to 1,000 units towards the end of the year. (Bisnis Indonesia)

Indomobil to do local assembling for Renault

Citing its CEO statement, Indomobil Sukses Internasional (IMAS) plans to do local assembling for Renault cars at one of IMAS’ local assembling facilities. Local assembling would make Renault more price competitive, as it would get better tax incentives from the government. The study remains ongoing now, with better clarity expected in July. The media reports a possibility for Renault to do local assembling for its SUV type. (Kontan)

Adhi karya: securing Rp7.6tn property backlog in 2014

A newspaper reported for Indonesia Market Summaries that ADHI, through its property subsidiaries, is securing a total of Rp7.6tn property backlog in 2014. The largest project will be a 6-Ha superblock in Daan Mogot, West Jakarta with contract value of Rp6tn and low-rise residences in Pejaten with project value of Rp800bn, where ADHI owns 70% of the project. This year, Adhi Properti is aiming for Rp890bn revenue and (Rp341bn revenue in 2012) and Rp160bn in net profit (Rp78bn net profit in 2012) (Kontan).

Adhi Karya Monorel update

Adhi Karya: Monorel update (ADHI, Not rated, Rp3000)

A newspaper reported yesterday that PT Jakarta Monorel (JM) has agreed to acquire monorel pillars that has been constructed by ADHI previously. The agreed figure came at Rp190bn, which was higher that the government audit body (Rp130bn), but a bit lower than ADHI appraisal’s figure (Rp212bn). JM will then report this agreement to Jakarta Governor to start the monorel construction process. JM management also indicated that payment to ADHI will be completed in the next two weeks.

It was also just revealed that Edward Soeryadjaya, the brother of Edwin Soeryadjaya of Saratoga, is backing up the project through Ortus Holding Ltd (majority shareholder of JM).

Based on our last meeting with ADHI, the company has taken full provision on the works related to the project. As a result, any recoverable amount from this project will go directly to ADHI bottom line. The management guides Rp454bn net earnings this year, which has not taken into account this recoverable payment. Therefore, earnings surprise is possible due to the payment from JM.