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

Indonesia Market Summaries 12 July 2013

• PT Borneo Lumbung Energi & Metal Tbk (BORN, Rp330) agreed to separate with Group Bakrie. BORN affiliated companies namely Ravenwood Pte Ltd has signed an agreement to buy a 23.8% Group Bakrie stake in Bumi Plc for U.S. $ 223 million.
  
  BORN will then increase its stake in Bumi Plc to 47.6% through the purchase of shares of Ravenwood. In addition, BORN will also continue to reduce its debt by some means. (Bisnis Indonesia)
• Dry ports of PT Kawasan Industri Jababeka Tbk (KIJA, Rp320) expects to serve as many as 100 corporate customers by the end of this year from the current position that has 18 companies.
  
  Dry port operator PT Cikarang Dry Port (CDP) is also targeting 30,000 units of container flows equivalent size of twenty-foot equivalent units (TEU), of a total capacity of 400,000 TEU. CDP also plans to expand its area so as to increase profits 10% this year. (Kontan)
• PT Lippo Karawaci Tbk (LPKR, Rp1.130) will build a superblock Embarcadero in Bintaro area. Construction will begin in September-October and will continue for the next 3 years with an investment of Rp2,2 billion on 260,000 square meters area.
  
  The area will include a shopping center, four condominium towers with a capacity of 650 rooms, Siloam Hospital with capacity of 300 bed, Pelita Harapan international school, and family club. (Investor Daily)

Indonesia Market Summaries 5 July 2013

ADHI Beton, concrete unit of PT Adhi Karya Tbk (ADHI, Rp2.975, BUY, TP Rp4.200) intended to be used as a separate subsidiary by its parent. The business units targeting income of Rp600 billion and EBIT income of Rp67 billion this year, including precast frame order of SOE monorail project.
ADHI intends to build third concrete plants in the next 3 years with an investment of Rp149 billion so ADHI Concrete predicted to increase its revenue to its parent by 20% for the next 5 years. (Investor Daily)

PT BPD Jabar Banten Tbk (BJBR, 1,200, NEUTRAL, TP Rp1.300) plans to acquire PT Asuransi Staco Mandiri.The maximum value being offered by BJBR for this general insurance owned by Yayasan Kesejahteraan Bank Mandiri Dua and several other pension fund is Rp. 100 billion. (Kontan)

PT Kawasan Industri Jababeka Tbk (KIJA, Rp345) officially operate their first power plant in Jababeka. Electricity will be sold to PLN worth Rp1.050/kWh for 20 years, so the sale of electricity will generate revenue for KIJA Rp900 billion per year. Fuel gas is supplied by Pertamina EP and PT Perusahaan Gas Negara Tbk (PGAS, Rp5.750).
KIJA also plans to develop their Power Generation business, including supply to Tanjung Dimples and Cilegon. (Kontan)

PT Ciputra Development Tbk (CTRA, Rp1.150) targeting sales of 500 billion from several launch of new projects in the quarter III/2013. Several projects were launched are four residential in Batam, Cirebon, and Pontianak, each targeted Rp100 billion. A total of 160 apartment units in Ciputra World predicted can also donate of Rp. 100 billion. (Bisnis Indonesia)

for Indonesia Market Summaries 5 July 2013