Day: March 21, 2017

Updates on LuLu Group’s Tax Case : More Names

The trial of Rajesh “Mohan” Rajamohanan Nair, the Managing Director of a subsidiary of Lulu Group International PT EK Prima Ekspor (EKP) continues. In the hearing held on March 20, 2017, the court heard the testimonies of key parties related to the bribery case implicating the Lulu Group, i.e., the Director of PT Rakabu Sejahtra Arif Budi Sulistyo and the other suspect in the case Handang Soekarno, who is the head of Initial Evidence Sub-Directorate at the Law Enforcement Directorate in the Directorate General of Taxation of the Ministry of Finance. The public prosecutors confronted Handang with evidence the KPK had collected from Handang’s office, including documents of evidence concerning several politicians, celebrities and advocates.

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A New DPR Leadership: The Remaining Debate (2)

All of the political parties in the House of Representatives (DPR) previously agreed to accommodate PDIP’s request for a seat in the leadership of the DPR and the People’s Consultative Assembly (MPR). And so we saw the revision of the Law No. 42/2014 on the Revision of the Legislative Institution Law (MD3) No. 17/2014. But months have passed, and the DPR has so far failed to wrap up the latest iteration of the MD3 Law. The obstacle that lingers is still the same one we discussed months ago: the request of Prabowo Subianto’s Gerindra Party that there’s an odd number of leaders seated in the leadership of the MPR and the DPR.

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The E-KTP Case, Dynamics in Golkar, and Novanto’s Future (2)

A political tsunami has hit the Golkar Party following the development of the electronic identity card (E-KTP) graft case—its chairman Setya Novanto was mentioned in the Corruption Eradication Commission (KPK)’s indictment against the the two defendants (Irman and Sugiharto) of the case. There’s a rumor that the Party will hold another extraordinary congress (Munaslub). It’s unclear who started the rumor, but the Golkar elites have said that there would be no Munaslub.

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Industrial Issues

The Government of Indonesia plans to launch the 15th Economic Policy Package this week. The new Policy Package will focus on further reducing the average dwelling time in ports. The specific items on the connectivity issues to be set on the policy include the implementation of cost, insurance and freight (CIF) scheme for foreign trade, mainly for import of foods such as rice. For import of components for ship, the import duty would be zero. The Government will also cut non-tax revenues from ships along with the drop in commodity transportation mainly coal and crude palm oil (CPO). The Government will loosen policy on tax clearance for foreign ships.

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Market & Corporate Actions/Results

Foreign investors continued buying local stocks on Monday (Mar 20). They booked a net buy of Rp830 billion, bringing year-to-date net buy to Rp5.12 trillion. Domestic investors, meanwhile, dominated the selling as they opted to lock in profits in certain stocks. The composite index declined 0.12% to close at 5,534 yesterday, but closed off its low of 5,510 helped by late buying. The rupiah also strengthened to Rp13,329 against the U.S. dollar yesterday.

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Mayora Indah (MYOR): FY16 Results & Outlook

Food processor Mayora Indah (MYOR) booked net profit of Rp1.36 trillion last year, an increase of 11.1% from 2015, thanks to strong performance in the fourth quarter. Mayora, which is among companies aggressively expanded production facilities and grow export market, reported 30.6% jump in net profit for the quarter.

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FY16 Results: Bumi Resources (BUMI) & BRMS

Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net profit of US$67.7 million last year against loss of US$1.93 billion in 2015. Bumi Resources Minerals (BRMS), meanwhile, posted net loss of US$315 million last year due to huge impairment of asset (US$660 million, investment-and-divestment of shares in PT Newmont Nusa Tenggara).

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Hospitality Player to Watch: Lariz Hotel

Improved public infrastructure will likely grow tourism industry significantly in the coming years. Business players anticipate the growth with investments in the hospitality industry, especially hotels. Lariz Hotels & Resort Management is one of those hospitality players with rapid growth in the past two years. Established in 2015, Lariz Hotel now manages hotels and villa in several cities like Jakarta, Bogor, Bandung, and Makassar. Who’s behind the group?

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Freeport: A Journey to the past & Issues to watch (2)

Indonesia’s export revenues from mineral ores crashed 99% to US$3 million only last month due to suspension of copper concentrate export from Freeport Indonesia and Amman Mineral Nusa Tenggara (AMNT) following new policies issued in the second week of January. Indonesia, however, posted an overall trade surplus of US$1.32 billion in the month, expanded by 16% year-on-year.

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