Author: yosefardi.com

Cabinet reshuffle updates

It’s not just companies that regularly do the ‘window dressing’. Cabinet members are busy making statements about their performance ahead of reshuffle plan to be announced immediately. One minister placed 8-pages sponsored article, while others orchestrated events to attract the president’s attention and horse tradings with politicians. The president has ordered all ministers to stay in town in the next few days, a clear sign that the reshuffle will be announced as planned.

Read More

Djava Energy & the making of an giant

In less than eight years, Djava Energy has emerged as one of the biggest player in the Indonesia’s oil and gas business. Petromine Energy Trading, one of its subsidiaries, booked revenue above US$120 million last year from oil trading alone, a growth more than 100% from 2005. Liberalization of downstream oil and gas market has also placed the company as an important player thanks to its relationship with Petronas. Who are the people behind it?

Read More

‘Thank-You Money’ from Singapore’s sands importers

Economist M Fadhil Hasan, former special staff of Rokhmin Daruri (former minister for fishery and marine resources under Megawati administration), told a court hearing here yesterday that sand importers in Singapore gave US$400,000 of ‘thank-you money’ to minister Rokhmin (a suspect in corruption case) in February 14, 2003. A Valentine gift?

Read More

Performance of APP units (Indah Kiat & Tjiwi Kimia)

Two major subsidiaries of Asia Pulp & Paper—PT Indah Kiat Pulp & Paper (INKP) Tbk and PT Pabrik Kertas Tjiwi Kimia (TKIM) Tbk—reported healthy sales growth last year but booked combined net losses of US$248 million. Indah Kiat’s Performance (US$ million) 2006 2005 Net Sales 1,584 1,414 Gross Profit 289 210 Operating Profit 107 29.46 Net Profit (Loss) (185) 8.03 Tjiwi Kimia’s Performance (US$ million) 2006 2005 Net Sales 956 926 Gross profit 124 163 Operating profit 14.5 57.66 Net profit (loss) (63.3)...

Read More

Oil Deficit Widens

Once Asia’s largest oil exporter, Indonesia has increasingly became an oil importing economy with widening deficits. In the first quarter 2007, according to my calculation on the latest statistic released by Central Bureau of Statistics (BPS), Indonesia recorded net oil deficit of US$1.458 billion, grew 46% from US$995 million in Q1 2006. Increasing domestic demand for fuels (refined oil) contributed to the growing gap. Import of refined oil products grew 20.76% in Q1 2007, reflecting a recovery of domestic fuel consumption following the huge price adjustment in October 2005. At the same time, Indonesia’s surplus from crude oil trading declined steadily from US$345 million in Q1 2006 toUS$291 million in Q1 2007. The country is clearly struggling to boost oil production, especially more aggressive investment in exploration activities, because there is natural tendency for old wells to have declining output. More serious problem is in the refining business because none of the announced projects that really materialized. Recovery of automotive sales this year, following the decreasing interest rate, would push fuel consumption even higher while government’s effort to reduce oil consumption in power generating sector is still long way to go. Other than oil, other commodities were doing great, especially minerals and agriculture products. Overall, Indonesia reported 15% export growth to a new record of US$25.85 billion in Q1 2007, thanks to higher commodity prices. Coal export, for example,...

Read More

Trakindo to issue bonds

Giant heavy equipment supplier PT Trakindo Utama engaged with Sumbawa Besar Regency in the acquisition of 3% shares of copper and gold mining company PT Newmont Nusa Tenggara. In the meantime, is preparing bond issuance–nothing to do with the acquisition plan, people close to the deal said. According to people close to the group, Trakindo has appointed UBS to prepare the bond issuance at the size of US$200 million to US$300 million. “Mainly to finance the group’s expansion,” an investment banker said. Like other mining contractors in the country, PT Trakindo Utama enjoys the boom and so the family who own it, Hamami Family led by AHK Hamami (popular as Met Hamami) and his sons Muki & Bari Hamami. Checkout their profiles at www.trakindo.co.id. Nine years ago, Trakindo Utama sealed a US$171 million debt restructuring deal with 32 banks. Trakindo, the local distributor of Caterpillar Inc, secured the clearance from banks to roll over...

Read More

Bumi profit soars 230%

PT Bumi Resources Tbk reported net profit of US$80.2 million in first quarter, jumped 230% from the same period last year on increasing sales and margin. Bumi posted US$577 million sales revenue in Q1/07 or a 36% growth from Q1/06 while the cost of goods sold increased at a lower rate resulting in slightly more than 100% gross profit growth to US$199.57 million. Bumi, which just scrapped US$300 million bond issuance, recorded 155% operating profit growth to US$112 million. The company’s asset increased 29% to US$2.41 billion, mainly due to increasing long-term loans to US$930 million as of March 2007 against US$471 million in the same period last...

Read More

Cipta Panelutama’s tranformation

Started out its business as wood panel producer, PT Cipta Panelutama Tbk has transformed itself into a mining company producing bauxite which recorded ten fold revenue last year. Cipta Panel’s subsidiary PT Harta Prima Abadi Mineral (HPAM) contributed 95% to the parent company’s 2006 revenue. Major shareholders also have significant shares in two coal mining concessions that already in operation. In December 2005, Cipta Panelutama acquired 75% shares of HPAM which started bauxite production in August 2005. Established in 1996, HPAM secured exploration licenses from Ketapang Regent, West Kalimantan. HPAM awarded 20-year contract to exploit bauxite in Kendawangan over 13,437 hectares and Simpang Dua over 33,700 hectares. Before HPAM, PT Aneka Tambang Tbk was the only bauxite mining company in Indonesia. HPAM produced 2.47 million tones of bauxite last year with net revenue of Rp396 billion. Besides the two producing sites (Kendawangan and Simpang Dua), Ketapang Regent also awarded exploration contract to HPAM in Simpang Hulu and Marau with combined acreage of 119,000 hectare. It’s not clear how big the company’s bauxite deposits in these areas. But the company had secured marketing side with long-term supply agreements with customers in Japan, India, Europe, and mainly China. HPAM signed long-term supply agreements with Liao Cheng Xinfa Huayu Alumina Co Ltd, Emerald Rich Technologies Corporation, and Shandong Weiqiao Pioneering Group Co Ltd. Who are the people behind Cipta Panelutama? At the moment the...

Read More

Salim’s insurance business

Few of us really paid attention when Salim Group acquired small but listed insurance PT Asuransi Harta Aman Pratama (AHAP) Tbk few months ago. AHAP has asset less than US$5 million, while Salim’s insurance group already has asset more than US$500 million. Is it a preparation of a backdoor listing for its insurance business? What Salim will do next? Low-profile, Salim’s insurance business has grown significantly in the last few years. According to my preliminary list, Salim controls at least five insurance companies with combined asset around US$700 million by the end of 2006 and net profit well above Rp150 billion. Little bit profile of Salim’s insurance companies as follows: 1) PT Asuransi Central Asia Shareholders: Anthoni Salim and his associates control 67.42% through various names as follows:             Asian Insurance International                  31.56%             Anthoni Salim                                        22.55%             Aylen Salim                                        2.52%             Brenda Salim                                        2.52%             Raymond Salim                                   2.52%             Teddy Salim                                        2.52%             Renny Salim                                        2.52%             Sjerra Salim                                        2.52%             Daud Salim                                        0.90%             David Salim                                        0.90%             Jimmy Liem Sin Tung                          0.90%             PT Lintas Sejahter Langgeng               27.05%             Darmawan Gozali                               0.4%             Sri Rahayu Kartohardjo                 0.62% Finance: (as of Dec 2006) Asset: Rp1.68 trillion Net underwriting revenue: Rp370...

Read More

IPO to Watch: Darma Henwa

Coal mining contractor PT Darma Henwa plans to offer its shares to investors in the second half  (July the earliest). The company expects to raise between US$200 million to US$250 million. Who are the people behind Darma Henwa? “The initial public offering (IPO) will be around July,” people close to the company said. JP Morgan and Danatama Securities have been retained as underwriters for the IPO with shares to be listed at Jakarta Stock Exchange (JSX). Two years ago, May 2005, Henry Walter Eltin and PT Darma Bakti Cirende transferred all shares in Darma Henwa to Zurich Asset International Limited (95%) and PT Indotambang (5%). In October 2005, Darma Henwa, Indotambang and Zurich Asset signed US$143 million loan agreement with UOB, Caterpillar Finance, Merrill Lynch, UFJ, Chinatrust, and Moscow Narodny Bank. Last year, UOB Asia arranged US$205 million loan for Darma Henwa’s project financing. Darma Henwa has 10-year US$1.2 billion contract from PT Kaltim Prima Coal to develop Bengalon site. Darma is also the contractor for Tanito Coal. KPC and Tanito contributed US$58 million and US$3.5 million respectively to Darma Henwa’s 2005 revenue. Its consortium with Arutmin Indonesia (another Bumi subsidiary) won the largest coal supply for state-owned PT PLN at 10.23 million tones in October 2006. It’s not clear who owns Darma Henwa. Nirwan Bakrie, controlling owner of PT Bumi Resources Tbk (parent company of KPC) said Darma...

Read More
error: Content is protected !!