Indonesia Market Summaries 23 July 2013

• PT Perusahaan Gas Negara Tbk (PGAS, Rp5.800) targeting two oil and gas blocks owned by Hess. The plan will be carried out through its subsidiary PGAS, PT Saka Energi Indonesia, after Hess expressed its plan to pull out from Indonesia. Hess currently has four oil and gas blocks, namely Ujung Pangkah Block, Semai V Block,  Sesulu Selatan Block, and Laut Timur 1 Block. (Kontan)
• PT Alam Sutera Realty Tbk (ASRI, Rp740) predicts its net profit rose 33% -52% YoY in semester I/2013 to Rp 700 billion - Rp 800 billion. The income is projected to rise 55% -64% YoY to Rp 1,7 billion - Rp 1,8 trillion amid a strong rise in sales last year. The financial expectations of management that it meets the 40% -46% of year forecast and 48% -54% consensus of market participants. (Investor Daily)
• PT Sentul City Tbk (BKSL, Rp245) raised its sales target by the end of the year to Rp 1,5 trillion, from the previous target of Rp 1 trillion. The enhancement is the result of large sales in Semester I/2013 amounted to Rp 700.
  
  After Lebaran, BKSL will build 270 condotel units, where 200 units of which will be sold and the rest will be used for recurring income sources. (Investor Daily)
• Thang Long Cement JSC, a new subsidiary of PT Semen Indonesia Tbk (SMGR, Rp14.600, NEUTRAL, TP Rp19.000) in Vietnam, refinance its debt worth U.S. $ 100 million using syndicated bank in dollar-denominated loan.
  
  SMGR claimed that the loan has a low interest so profitable for Thang Long that is currently charged a Vietnam high interest bond. (Investor Daily)
• PT Multicom Persada International demanding PT Erajaya Swasembada Tbk (ERAA, Rp2.175, BUY, TP Rp3.875) and several other parties. Lawsuit delivered by Daniel Setiawan, Director of PT Multicom Persada International (MPI). The lawsuit was also filed with the Director ERAA Sim Chee Ping, PT Data Citra Mandiri, Apple South East Asia Pte Ltd, and Apple Head Quarter.

for Indonesia Market Summaries 23 July 2013

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)

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).