Day: March 8, 2017

The End for Central Steel Indonesia?

Posted by | Mar 8, 2017 |

The legal counsel of PT Central Steel Indonesia (CSI) seemed to have failed to convince the shareholders to transfer their rights to the Company’s assets for the new investors. And so the new investors may withdraw their intention to invest, in which case the Company wouldn’t have a way to pay their debts to the creditors. Meanwhile, the Attorney General’s Office (AGO)’s investigation of a graft case has led to two of the CSI’s directors being named as suspects.

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On Tehate Putra Tunggal’s PKPU

Posted by | Mar 8, 2017 |

The period of Suspension of Debts Payments (PKPU) for PT Tehate Putra Tunggal and its subsidiary PT Trimaten Gemilang continues. The creditors recently agreed to giving 30 days of additional time for the Companies upon learning that they’re still responsible for several electricity projects.

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East Kalimantan’s 2018 Election: Battle of Political Dynasties?

Posted by | Mar 8, 2017 |

As predicted, the Golkar Party nominated the regent of Kutai Kartanegara Rita Widyasari—who is also the daughter of former Kutai Kartanegara Regent Syaukani Hasan Rais—as their governor candidate for the resource-rich province’s gubernatorial race next year. Golkar is the largest political party in the East Kalimantan. PDIP, the second largest political party in the province, on the other hand may nominate Awang Ferdian Hidayat—who is the son of East Kalimantan Governor Awang Faroek Ishak. A battle between Rita Widyasari and Awang Ferdian Hdayat would be a battle of political dynasties.

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Banking Update: NPL Risk

Posted by | Mar 8, 2017 |

The banking sector continues to face the potential of increasing non-performing loans (NPL) this year as lending under collectability 2 category grew. That saidm the NPL ratio would be maintained at maximum 3.5%.

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South Sumatera’s 2018 Election: Battle of the Big Five

Posted by | Mar 8, 2017 |

The Governor of South Sumatera Alex Noerdin, who is also the chairman of Golkar Party’s South Sumatera chapter, is not able to seek re-election for having serve two terms. And so we may see many gubernatorial pair participating in the resource-rich province’s 2018 gubernatorial race. But since none of the political parties in the province has enough seats in the local legislative council (DPRD) to pass the 20% minimum threshold, they will have to form coalitions to pass the threshold and earn the right to nominate their pair of candidates. Given the constellation, we may see 4 to 5 pairs maximum.

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Masela Block: Gas-to-Chemicals

Posted by | Mar 8, 2017 | , ,

Inpex/Shell consortium has submitted new proposal for the development of Masela Block in Maluku province. The government, however, has yet to make any decision, pending clarity surrounding gas-based petrochemical projects. While annual gas output is agreed at 10.5 million tons per annum, there are two options on volume of gas to be produced as liquefied natural gas (LNG) and gas derivative products (petrochemicals).

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Positive Outlook on the Economy

Posted by | Mar 8, 2017 |

The Central Bank (Bank Indonesia/BI) said on Tuesday (Mar 7) that the higher official reserves assets position by end of February (US$119.9 billion) were able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth. BI said that the reserve asset position at the end of February 2017 could adequately cover 8.9 months of imports or 8.5 months of imports, and service government external debt repayments, well above the international standards of reserves adequacy at 3 months of imports.

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Speculations Surrounding Freeport

Posted by | Mar 8, 2017 | , ,

Shares of Freeport McMoRan ended lower by 1.63% to US$12.69 in New York Tuesday (Mar 7) on broad market correction of mining stocks. Aluminium giant Alcoa also lost 3% in New York, while Glencore Plc fell almost 2% earlier in London as metals lost ground. Dr Copper, for example, retreated 1.38%, while gold slipped 0.86%.

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Adaro Energy: FY16 Results & Outlook

Posted by | Mar 8, 2017 | ,

Higher average price of thermal coal in fourth quarter 2016 lifted performance of Indonesian producers. Adaro Energy (ADRO), second largest coal group, booked net profit of US$334.62 million last year, skyrocketed by 119.5% from 2015. With earning per share of Rp139, the current price looks cheap.

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