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).