Author: yosefardi.com

KPC profit drops 97%

PT Kaltim Prima Coal, the largest coal mining in Indonesia, reported 97% drop in net profit last year, mainly due to significant drop in operating margin. The company’s operating profit decreased 54.7% last year to USD58.6 million. KPC reported almost 25% growth in production to 35.4 million tones against 28.17 million tones in 2005, mainly due to significant increase at Bengalon area. KPC recorded revenue of USD1.127 billion in 2006 against USD1.076 billion in 2005. With cost of goods sold increased from USD823 million to USD945 million, KPC’s gross profit decreased to USD182 million from USD252 million in 2005. Meanwhile, Arutmin reported lower production at 15.35 million in 2006 against 16.75 million in 2005 mainly due to production decline at Batulicin. As a result, Arutmin’s revenue dropped from USD519 million to USD470 million with gross profit dropped from USD102 million to USD44...

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New JV: Merpati-E-Capital-Air XL

State-owned airline company PT Merpati Nusantara Airlines (MNA) has entered into a JV cooperation with PT E-Capital Securities and US-based Air XL Inc to develop an air transportation consulting business. The three companies established PT Merpati Excel Air with investment commitment of USD20 million. No details available on the new...

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Bumi & Tata deal, buyback reviewed

After weeks of speculation about the deal between Tata Power and PT Bumi Resources Tbk, the listed parent company of KPC & Arutmin finally announced part of the SPA today. What’s inside the US$1.1 billion deal? Bumi also announced its plan to review the shares buyback following the price increase over the last few months. Shareholders approved the buyback at maximum price of Rp1,200 for maximum 1.94 billion shares. Until last week, Bumi bought back 1.364 billion shares. For the remaining 575 million shares, Bumi asks shareholders to raise the price range to maximum Rp1,800. Back to the deal! Tata will get 30% shares of KPC, Arutmin, Indocoal Resources (Cayman) Ltd, PT Indocoal Kalsel Resources (Indokalsel) and PT Indocoal Kaltim Resources (Indokaltim) for US$1.1 billion. Appraiser Yanuar Bey and Partners gave its valuation at US$894.16 million for the...

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Garuda improved, but still in red

Flag carrier PT Garuda Indonesia reported operating loss of Rp378.7 billion in 2006, reduced significantly from Rp668 billion in 2005. The company’s net loss also dropped to Rp197 billion against Rp688 billion in 2005. But the company’s revenue has been chipped away to low-cost carriers. According to Garuda’s audited financial statement, the company booked revenue of Rp12.34 trillion in 2006, slightly reduced from Rp12.65 trillion in 2005 at the time when overall traffic in the country increased sharply. Garuda managed to cut its operating expenses to Rp12.72 trillion. But the company’s significant drop of net loss mainly contributed by other income (Rp251.78 billion). Meanwhile, the first quarter 2007 unaudited report looks more promising with operating profit of Rp114 billion and net profit of Rp114...

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Bakrie Sumatra’s acquisition

PT Bakrie Sumatra Plantations Tbk will acquire 100% ownership of PT Grahadura Leidong (GLP) palm oil plantation company PT Sumbertama Nusapertiwi (SNP) at Rp260 billion. PT GLP owns 8,323 hectare of CPO plantation of which 3,832 hectares are already in the harvesting stage. GLP owns 60% shares in SNP which operates a combined 8,629 hectares of CPO plantation (including 1,600 hectares operated by plasma farmers). None of these have been...

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Cabinet reshuffle updates

The rumor of a cabinet reshuffle has been around for almost six months. It makes some believe president Susilo Bambang Yudhoyono might simply not going to do that. But in the last few days, the rumor intensified with statements of the president himself, vice president Jusuf Kalla, and even The People’s Consultative Aseembly speaker. Now, it’s a matter of days to see the truth.

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Poempida: Politics & Business

Poempida Hidayatullah is one of important personalities in current politics and business in Indonesia. A close friend of controversial military figure and executive of the largest political party in the country, Poempida has a growing business group ranging from waste management, cleaning service, and security. Who is he? Besides being the son in law of minister for industry affairs and key figure of Golkar Party Mr Fahmi Idris, Poempida has long been considered a key inner circle of ret lt gen Prabowo Subianto. He runs businesses related to both Mr Idris’ Kodel Group and Prabowo’s Nusantara Energy group. He controls PT Indo-Enviro which dealing with waste management and PT Cleaning Services Indonesia. Poempida runs one of the largest security services company in Indonesia called PT Universal Security...

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Bakrie-led consortium to acquire Lativi

A consortium of young entrepreneurs led by Anindya Bakrie (son of Aburizal Bakrie, leader of the diversified empire Bakrie Group) will conclude the acquisition of the ailing TV station Lativi next week. Mahaka Group’s Erick Thohir will be appointed the new CEO for the TV station. “It’s a consortium of CMA and HIPMI (Indonesia’s Young Entrepreneurs Association),”  Sandiaga Uno, HIPMI chairman said. Antara News Agency reported on Friday that controlling owner of PT Abdi Bangsa Tbk (publisher of Republika newspaper) is acquiring Lativi. The ageny quoted Erick Thohir, one of key persons of Mahaka Group saying the acquisition of PT Lativi Media Karya is expected to be announced next week. Mr Thohir didn’t disclose which company would acquire Lativi. “For sure, it’s not PT Abdi Bangsa Tbk,” he said. Abdi Bangsa is the publisher of Republika, a newspaper established by former president BJ Habibie and some Moslem figures. Mahaka is the largest shareholder of Republika through PT Indopac Usaha Prima (38.18%) and PT Metropolis Media Nusantara (20.03%). Mahaka through PT Metropolis Media Nusantara already controls 50% shares in Jak-TV, TV station established in partnership with Tommy Winata’s Arta Graha Group. Lativi has been in financial trouble over the last few years with defaulted loans to state-owned Bank Mandiri. Lativi’s current owner Mr Abdul Latif (former minister under Soeharto regime) was investigated over the loan scam but the prosecution wasn’t...

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ADM Capital & The Future of Arbein

ADM Capital, fund manager based in Hong Kong with Asia Development Bank (ADB) as its anchor investor, is reportedly working on the possible offloading of its assets in Arbe Indonesia—controls three chemicals plants in Merak, Banten province. “Arbe Indonesia is in shaky condition and under pressure in the last few years. We heard the owner is planning to sell the assets,” executive at one local chemical company said. Arbe Indonesia is the new name for Risjad Brasali Industries which once owned plants that produce ABS and EPS resins in Merak. ADM Capital bought the assets few years ago from Risjad Brasali Group. According to the company’s website, Arbe Indonesia comprises two operating subsidiaries (Arbe Styrindo and ABS Industri Indonesia) which are managed and operated by well qualified professionals. Arbe Styrindo is an integrated manufacturer of Arbesan® Styrene Acrylonitrile resin (SAN), and Arbepor® Expandable Poly Styrene (EPS). The plants were commissioned in late 1995 and subsequently expanded in 1996 and 1997/8. Arbe Styrindo is the leading supplier of SAN and EPS products in Indonesia. The company also successfully competes on the international market, with over 25% of plant output being exported. ABS Industri Indonesia manufactures both Arbelac® ABS resin and a range of Arbelac® high butadiene rubber copolymers used as the major compounding component of ABS plastic manufacture. The plant copolymer output is used both internally as a raw material component,...

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