Author: yosefardi.com

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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Govt to ask JBIC restructure PIM loan

Indonesia government is expected to submit loan restructuring proposal to Japan Bank for International Cooperation (JBIC) regarding loans to state-owned fertilizer company PT Pupuk Iskandar Muda (PIM). JBIC is the largest creditor for PIM, located in Lhokseumawe, Aceh province. The company’s outstanding loan is around US$200 million (including interests). Two months ago, Indonesia’s state-owned banks (Bank Mandiri, BRI) have signed the restructuring of US$90 million loan to the company. PIM has been in financial difficulty over the last few years due to the interruptions of plants operation. Scarcity of natural gas supply has been blamed for the repeated shutdowns. The company’s operation would likely back to normal three years from now if Medco Energi managed to bring into commercial operation its newly acquired gas field Block A in North Sumatra Offshore (previously owned by Conoco & ExxonMobil). “We got the loan as sub-loan agreement between government and JBIC. So, the government is the prime debtor. Now, it’s up to the government to deal with JBIC regarding the loan. We’re not asking for haircut. We only need rescheduling of payments,” Hidayat Nyakman, president director of PIM...

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Antam to purchase power from Kalla-linked company

Listed company PT Aneka Tambang Tbk is negotiating power purchase agreement (PPA) to absorb up to 100 MW capacity from Sulewana hydropower plant developed by PT Bukaka Hydropower, a subsidiary of Bukaka Group. Dedy Aditya Sumanagara, president director of Aneka Tambang (Antam), told Indonesia Today this morning that the PPA is in the final stage. “We’re going to purchase up to 100 MW,” he said. Bukaka is developing Sulewana Hydropower Plant in Sulawesi, of which most of the power would go to Antam and nickel company PT Inco. It was Inco which initially planned to build its own power plant, but suspended for undisclosed reason. Most analysts believed Inco suspended the project to pave the way for Kalla Group’s...

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Mulia Group: Now & Then

Mulia Group is still one of the largest property developers in the country. The group is also integrated with construction materials through companies like Mulia Industri, Mulia Glass, and Mulia Keramik. The property arm, Mulialand, has announced its plan to go private. Rumors said Mulia Industri will follow suit. What’s happened with the...

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Telkomsel bond issuance

PT Telkomsel, a subsidiary of PT Telkom Tbk, will issue bond at the size of Rp1 trillion to Rp2 trillion. The company has asked investment banks to submit underwriting proposals for pre-qualification. Telkomsel will use the proceeds to finance its expansion. Telkomsel plans to build 1,500 BTS node for 3G with investment up to US$150 million. Competition in the telecommunication market has been intensified with the rolling out of Hutchinson’s 3 service in partnership with Charoen Phokphand. The first day of its operation, 3 has served 75% of population in Java which includes 76...

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Noonday-Northstar, Recapital, & BTPN deal

Noonday Asset Management, a unit of Farallon Capital, has provided US$120 million refinancing facility to PT Recapital Advisors loan obtained in 2005 to finance the acquisition of PT Bank Tabungan Pensiunan Nasional (BTPN). Noonday loan matures in March 2009. Sandiaga Uno, partner at Recapital Advisors confirmed the facility. “It’s about the size,” he said without further details. Recapital through its vehicle Admiro got the loan from Credit Suisse in 2005 to finance the acquisition of 71.61% shares of BTPN controlled by four parties (including Bakrie family). But late last year, Indonesia’s Central Bank rejected the deal. Indonesia government through PT Perusahaan Pengelola Aset (PPA) is the single largest shareholder with 28.39%. PPA has repeatedly put the shares in divestment plan but it’s never materialized for various reasons. Jan 31, 2007: Recapital entered into an exclusive agreement with a consortium of investors consisted of Quvat, Goldman Sachs, Citicorp, and GIC for the shares but the deal collapsed after Noonday’s entrance through the loan facility. Noonday acquired 100% of the loans under the CSFB facility and proposed a roll-over of the facility until a sale to TPG and Northstar can be consummated. Under the agreement, Noonday’s loan would be paid with BTPN shares divestment to Northstar Pacific-Texas Pacific Group. In Dec 2006, Texas Pacific Group (TPG) and their Indonesian affiliate, Northstar Equity Partners (NEP), came along offering to buy outright the entire 71.6%...

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Real Owners of Truba Alam

PT Truba Alam Manunggal Engineering (TRUB) Tbk is under the spotlight for suspicion on money laundering activities. The company’s share price has skyrocketted to Rp800 from its IPO price at Rp110. Who are the real owners of the company? According to its prospectus published today, TAME is owned by PT Nusantara Langit Biru (50%) and PT Alam Manunggal (50%). PT Nusantara Langit Biru is owned by Renier Abdul Rahcman Latief (50%) and PT Mandala Kapital (50%). Renier is also the shareholder of listed PT Energi Mega Persada Tbk which owns Lapindo Brantas Inc, currently in trouble with the mudflow disaster in Sidoarjo, East Java. Renier’s wife and Bakrie family co-owns the Federal International, an engineering company listed in Singapore stock exchange. Meanwhile, Alam Manunggal is owned by Mrs Ratnawati Wihardjo (99.99%) and PT Mandala Kapital (0.001%). Mrs Ratnawati is also the commissioner of PT Hortus Tbk, a listed brokerage firm and shareholder of PT Palm Asia Corpora Tbk. PT Maxima Infrastructure and Mr Johan Rusli are major shareholders of Hortus. Hortus’ related companies are PT Sanex Telekomunikasi (CDMA), PT Harumdana Berjangka (futures trading) and PT Sanex International. TAME has three major subsidiaries, PT Maxima Infrastruktur, PT Manunggal Power, and PT Manunggal Infra Solusi. The famous finance executive Hendrik Tee, former CFO at Sinar Mas’ Asia Pulp & Paper (APP) is the CEO of Manunggal Power (MP). MP is working...

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Peter Sondakh

Peter Sondakh is the front-runner in government’s plan to divest up to 49% shares of flag carrier PT Garuda Indonesia. Who is he? Political affiliation? Business Interests & networks? Track records? Important inner circle? Peter Sondakh, the owner of Rajawali Corporation Group, was born in Surabaya, East Java from a native Manado father and Dutch-born/nationality mother. His first wife was a Thailand-born woman. From this marriage, Peter has two children, Claudia & Charles, both grown-up. The second wife, a Singaporean named Evi whose family owns Peninsula Hotel chains in Singapore & Indonesia. Peter has one child from this marriage. Peter is known a great personality with high lobbying capability and that’s why he survived many turbulences in his businesses. He always close to power holders in the executive branch of government, legislative & military. During Soeharto, Peter was friend of Bambang Trihatmodjo (Soeharto’s son) and have some joint ventures, including the telecommunication, broadcasting (RCTI), and hotels. He is a long-time friend of Joop Ave, former minister of tourism & telecommunication under Soeharto regime. In early 1990s, Bambang Trihatmodjo bought three properties in Beverly Hills, Los Angeles with his business partners Peter Sondakh and Boyke Gozali. The report that time disclosed that on February 28, 1991, “Rajawali USA Inc.”, a subsidiary of Rajawali Corporation owned by Peter Sondakh, bought a property on 2846 Deep Canyon Drive, Los Angeles, CA 90210...

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Jasa Marga IPO updates

Privatization of up to 30% shares of state-owned turnpike operator and developer PT Jasa Marga could be the single most significant for president Susilo Bambang Yudhoyono’s 2.5 years administration. Watchout the politics! Government and parliament have actually made important decision: to privatize Jasa Marga through an initial public offering (IPO) instead of spin-off existing toll roads to raise fund. Parliament had approved the IPO up to 30% but SOEs minister Sugiharto prefers to have a maximum of 15% shares sold through IPO to be followed by spin-off of subsidiaries. Government has also appointed supporting consultants, including CIMB as the financial advisor. The initial target was to have the IPO concluded by June 2007. But government has yet to appoint the lead underwriter, partly due to heavy political intervention from parliament. Some newspapers reported The House Commission XI recommended the government not to appoint Danareksa Sekuritas (a state-owned investment bank) for failing to submit proposal right on time. Danareksa argued that it didn’t know the announcement made by Jasa Marga (through a small ad). Danareksa claims it submitted the lowest underwriting fee. “I just can’t understand why parliament should meddling in technical issues like appointment of underwriters for privatization. It should focus more on the broader issues of privatization and let government exercise its executive power,” said one local analyst. Danareksa believed the parliament’s rejection is just a matter of...

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