Archives | Analysis by Yosefardi

Expansion of Indonesia’s Cellulose Fibers

Posted by yosefardi.com | Mar 9, 2017 | Industries, Market

Synthetic fiber may control 63% of the world’s fiber market, but man-made cellulose fiber is a big business. Indonesia with its forest resources is a key player despite questions surrounding sustainable forest management. Other than the growing export market, Indonesia, with a population of 250 million people, is a big market. That’s probably why Lenzing AG, the world’s largest producer of viscose staple fiber (VSF), plans to expand its Indonesian facilities.

The E-KTP Graft Case: The Trial Begins

Posted by yosefardi.com | Mar 9, 2017 | Politics

Today (March 9) the Jakarta Corruption Court holds the first trial of Sugiharto and Irman, the two defendants in the electronic identity card (E-KTP) graft case. Many look forward to this trial because it may reveal more information on the suspected involvement of the the House of Representatives (DPR) Speaker Setya Novanto, who is also the chairman of Golkar Party.

The E-KTP Graft Case: SBY’s Aides & TW’s Son

Posted by yosefardi.com | Mar 9, 2017 | Politics

Today (March 9) the Jakarta Corruption Court is scheduled to hold the first trial of Sugiharto and Irman, the two defendants in the electronic identity card (E-KTP) graft case. The mega project was rolled out and implemented by Susilo Bambang Yudhoyono (SBY)’s regime and is estimated to have cost the State Rp2.3 trillion in losses. Many look forward to this trial for the purpose of hearing the indictment and to that extent the suspected involvement of the House of Representatives (DPR) Speaker Setya Novanto, who is also the chairman of Golkar Party. But other big names have also been mentioned in connection to this case, particularly those known to be close to SBY, and those linked to Tommy Winata (TW).

Legislative Journal: Government Regulation No. 18/2017

Posted by yosefardi.com | Mar 9, 2017 | Law

On February 22, 2017 President Joko “Jokowi” Widodo promulgated the Presidential Regulation (Perpres) No. 18/2017 on Procedures for Acceptance and Distribution of Donations by Community Organizations in the Prevention of Terrorism. Perpres 18/2017 is meant to address the scenario whereby community organizations (Ormas) are being used as means of financing terrorism.

Is This the End for Putu Sudiartana?

Posted by yosefardi.com | Mar 9, 2017 | Law

Putu Sudiartana’s trial is over. The former member of the House Commission III of the House of Representatives (DPR), and former cadre of Democratic Party, was found guilty of bribery on March 8, 2017. Putu was sentenced to imprisonment, and the panel of judges also revoked his rights to run for office for 5 consecutive years.

Market & Corporate Actions

Posted by yosefardi.com | Mar 9, 2017 | Market

Asian equities were mostly flat this morning (Thursday), as traders anxiously eyed U.S. crude prices which fell to $50 levels steadied after a sharp plunge overnight, cnbc.com reported. Crude benchmarks plunged more than 5% during U.S. hours on Wednesday after U.S. crude inventories surged to a record high at an increase of 8.2 million barrels last week, compared with the consensus expectation for a 2 million barrels. Market sentiments this morning are also hit by China factor—China is expected to release it consumer price index (CPI) and producer price index (PPI) later in the morning.

Tax Amnesty & Incorporated Export

Posted by yosefardi.com | Mar 9, 2017 | Market

The Tax Amnesty program will end this month (March 31) and the Government has revealed that it would impose sanctions to tax payers who are still concealing their wealth. As of March 8, the declared assets reached Rp4,463 trillion, with the repatriated funds amounting to Rp145 trillion, representing 14.5% of the target (Rp1,000 trillion).

Salim Group & The Future of Bank Ina Perdana

Posted by yosefardi.com | Mar 9, 2017 | Industries, Market

Shares of Bank Ina Perdana (BINA) surged 24.68% to Rp384 on Wednesday (March 8) with thin trading volume (9.84 million shares exchanged hands). That means value of the small bank has already jumped 148% since early November 2016 on prospect of having Salim Group, which once controlled Bank Central Asia (BBCA), as substantial shareholder in the bank.

Commodities & State Budget 2017

Posted by yosefardi.com | Mar 9, 2017 | Commodities, Market

Tax Office announced almost 100% year-on-year jump in oil and gas income tax (PPh Migas) collected in January 2017, thanks to higher average price of crude oil. State revenues from oil and gas should also increase significantly in February because average OPEC basket price was US$53.37 per barrel, an increase of 85.8% from February 2016. Month-to-date, OPEC basket price is US$53.51, representing 54% jump from March 2016. Assuming no significant change in volume, the State Budget should have been lifted by higher average price of crude oil in the first quarter of 2017.

Financing Issues of LRT Projects

Posted by yosefardi.com | Mar 9, 2017 | Industries, Market, Politics

Economist Faisal Basri, who failed in his attempt to become governor of Jakarta in 2012 election, criticized Jokowi-Kalla administration’s policies, calling them ‘reckless’. He pointed to the missed targets of tax collections in 2015 and 2016. While the government adjusted 2017 targets to be seen ‘more realistic’ (conservative), Basri believes spending side policy is still reckless. The economist then pointed to uncertainty surrounding financing of light-rail transit (LRT) projects.

Day: March 9, 2017