Revisiting Mahaka Group
The appointment of businessman Erick Thohir as leader of campaign team for President Joko “Jokowi” Widodo and Ma’ruf Amin pair, also prompted the buying mood on Erick’s companies’ shares on the Indonesia Stock Exchange (IDX). As the price jump was significant, the IDX management decided to halt trading in shares of Mahaka Media (ABBA) since Sep. 14, for cooling down the market. ABBA was traded at Rp145 per share in Sept 14, and its has surged 190% from Rp50 since Sep 7, the date of Erick’s appointment as campaign leader.
Corporate Actions
Independent power producer Cikarang Listrindo (POWR) plans to buy back 322 million shares, or 2% of enlarged capital. POWR shares gained 2.14% to Rp955 on Friday last week inline with broader market sentiment, but has fallen 26.5% year to date.
Combine Will & Trans-Java Toll Road
SGX-listed Combine Will International Holdings Limited has just officially inaugurated its new plant in Indonesia, signalling the Group’s strategic diversification of manufacturing facilities outside China. Located in Sragen, Central Java province, the group has also been accorded bonded zone status, demonstrating the endorsement and support from the Indonesian government authorities.
Banking: Liquidity Issue
Indonesia’s Deposit Insurance Agency (LPS) recorded that loan to deposit ratio (LDR) of the banking industry reached 93.11% per July 2018, higher than 89.20% in the previous month, reflecting a tightening of liquidity. This would prompt big scale banks and medium scale banks to raise their special rates on deposit and attract depositors.
Hexindo & The Heavy Equipment Market
Hexindo Adiperkasa (HEXA), sole distributor of Hitachi and John Deere heavy equipments, sets an ambitious sales volume of 2,436 units in the financial year ended March 31, 2019, an increase of 32.2% from the previous financial year.
Update on Oil & Gas Blocks
On Wednesday (Sep. 12) world oil prices extended Tuesday’s $2 surge, with Brent futures closing in on US$80 a barrel as Hurricane Florence advanced and U.S. sanctions started weighing on Iran’s exports, Reuters reported. News that Iranian crude exports have begun to decline well ahead of U.S. sanctions in November have been supporting prices in recent days as well. Nymex’s crude oil rose 0.87% to US$69.85 per barrel on Wednesday.
Revisiting Phapros, Indofarma
Pharmaceutical firm Phapros, subsidiary of state-owned trading firm Rajawali Nusantara (RNI), performed better compared to state-owned Indofarma (INAF). In the first half (H1) of 2018, Phapros reported a 45,8% jump in net profit to Rp53 billion, while INAF only booked a net profit of Rp253 million, but significantly improved from loss Rp53.54 billion in H1 of last year.
Salim-Medco Wins West Semarang Water Project
PT Aetra Air Jakarta (AAJ), subsidiary of SGX-listed Moya Holdings Asia Limited—-controlled by Anthoni Salim, together with its partner, PT Medco Gas Indonesia (MGI), have been awarded the Project that has been put up for tender by Perusahaan Daerah Air Minum Tirta Modal (PDAM), the municipal water company of Semarang City, Central Java, Indonesia.
Corporate Actions
State-owned construction firm Wijaya Karya (WIKA) and its strategic investors—Hyundai Engineering & Construction Co Ltd (HDCE) and Korea South-East Power Corporation (KOEN)—will build hydro power plant (PLTA) 4 Peusangan in Aceh utilizing peaker system. Said PLTA will have the capacity of 120 megawatts (MW).
Those Continue to Expand
While others tend to wait and see, some global firms proceed with their expansion programs in the country. Japan’s Asahi Glass Chemical, already the largest player for Poly Vinyl Chloride (PVC) resin in Indonesia, for example, has just decided to expand further its Indonesian facilities. Singapore’s SembCorp Industries, meanwhile, expands warehouse and distribution business.