Trans-Sumatra Toll Road So Far
Against all odds, Jokowi-Kalla administration moved closer to operate some sections of trans-Sumatra toll roads this year. A total of 65 KM in north and south Sumatra will be operational, but not yet commercial, during this year’s annual exodus for Lebaran holidays. Physical construction progress of the roll roads has lifted land price in the surrounding areas.
Infrastructure Journal No. 15/2017
Some of you might have noticed worsening traffic in the Jakarta-Cikampek toll road in the past few weeks. Other than higher volume of cars, there are three major infrastructure projects along the turnpike. First, the greater Jakarta light-rail transit (LRT), which connects Cibubur, Bekasi, and Jakarta. Second, the elevated toll road being built by Jasa Marga (JSMR). The third is construction of high-speed train (HST) connecting Jakarta and Bandung.
Merger & Acquisition Updates
Commodities (oil & gas, palm oil, coal, gold-copper, nickel), manufacturing, ICT, and financial sector continue to attract investors. In oil and gas sector, London AIM-listed company Empyrean Energy Plc, for example, recently entered into agreement to acquire up to 20% interest in Duyung production sharing contract (PSC) from Conrad Petroleum Pte Ltd.
Offshore Debt Market
Gold producer J Resources Asia Pasifik (PSAB) is on its way to issue US$300 million Notes with annual rate below 9% to finance the development of its assets in Indonesia and Malaysia. Medco Energy (MEDC), which indirectly owns 40% shares in Amman Mineral Nusa Tenggara, the second largest gold and copper producer in Indonesia, will likely issue new Notes under its S$500 million MTN program as well.
Salim Group’s Water Business
Shares of Moya Holdings Asia Ltd surged by 9.6% to $0.08 Monday. That means Moya has gained more than 100% since Salim Group subscribing 1.4 billion new shares in the Company last year. At the last quoted price, Moya has market capitalization of S$224 million, nearly twice its equity (S$123 million by Dec 31, 2016).
Yan Bin’s Reignwood & Bakrie Group
Some continued speculative trading in shares related to Bakrie Group, which is seen in huge trading volume and volatility. Average trading volume of Bumi Resources (BUMI), the largest coal producer in Indonesia, for example, was 722 million shares per day in the past three months as thermal coal hovers above US$80 per ton. Average trading volume in Energi Mega Persada (ENRG), the oil and gas producer, was 561 million shares per day in the period.
Infrastructure Push for Tourism
State-owned EPC firm PT Hutama Karya will likely be appointed operator of Tanjung Priok port access toll road, which is expected to ease congestion and help financing the trans-Sumatra toll road program. Built with Rp5 trillion of investment since 2008, physical construction of the 11.4-KM toll road has finally been completed and is ready for commercial operation soon.
Indonesia’s Top Advertisers
Unilever Indonesia (UNVR), market leader for personal and home care products, maintained its position as the largest advertiser in Indonesia despite 6.1% fall last year. HM Sampoerna (HMSP), the largest cigarette player, also maintained its position as the second largest with smaller gap to UNVR because its spending down 4.7% only.
New Equity to Watch (2): Bintraco Dharma (CARS)
PT Industri dan Perdagangan Bintraco Dharma (CARS) Tbk will kick off trading of its shares on Indonesia Stock Exchange (IDX) Monday, April 10. The automotive trading and financing company, controlled by the heirs of the late Agustinus Harjo Budi, starts the trading with market capitalization of Rp2.62 trillion at initial public offering (IPO) price of Rp1750.
Angkasa Pura II Financials & Airports Expansion
State-owned airport management company PT Angkasa Pura II, which manages, among others, Soekarno-Hatta International Airport, booked net profit of Rp1.94 trillion last year, an increase of 15% from 2015, thanks to stronger revenue growth. Like Angkasa Pura I, Angkasa Pura II was also more aggressive in its investments last year.