Great Investment News from Seoul (2)
Other than the committed investments, South Korean companies and their Indonesian partners have signed memorandum of understanding (MoU) related to US$5.76 billion worth of estimated investments in various sectors.
Great Investment News from Seoul (1)
President Joko ‘Jokowi’ Widodo witnessed signing of six investment commitments and 15 MoUs for investments during his visit in Seoul, South Korea Sept 9-11. Some of the commitments have actually been materialized, including construction of new electric cable factory in Karawang, West Java by LS Cable & System in partnership with PT Artha Metal Sinergi, member of Tomy Winata’s Artha Graha Network.
Corporate Actions
Bukit Asam (PTBA), coal producing subsidiary of INALUM, mulls to enter renewable energy by building solar power plants (PLTS). In the second half (H1) of 2018, PTBA still focuses on building its coal-fired power plants (PLTU) and will propose PLTS tender project to state electricity provider PT Perusahaan Listrik Negara (PLN).
Walk The Talk: South Korean Investments
President Joko ‘Jokowi’ Widodo arrived in Seoul, South Korea Sunday (Sept 9) afternoon for a short visit. Some memorandum of understanding (MoU) in automotive, metals, chemicals, garment, footware, and start-up are set to be signed today, but the president is expected to immediately solve issues leading to years of delay in major investments committed by South Korean companies.
Keppel-Salim Heats Up Data Center Business
Keppel Capital informed investors this morning that its subsidiaries Alpha Data Centre Fund, managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd, have signed conditional agreements with Salim Group to jointly develop and operate a data centre in Bogor, West Java.
Digital Prospect: MCAS vs KIOS
Indonesia is a growing market for digital products. Recent data show that internet users in Indonesia has reached over 133 million, while mobile subscriptions has reached over 371 million.
Corporate Actions
State-owned toll road operator Jasa Marga (JSMR) plans to divest stakes in 4-5 firms with toll road concessions. The Company mulls to issue mutual funds and to invite strategic investors. JSMR has divested its minority stake (19%) in PT Jakarta Lingkar Baratsatu (JLB). This move aims to boost equity of JSMR and to reduce pressures on debt. The Company is now developing 11 toll road projects.
Revisiting Mayapada Group
As a conglomerate and a philanthropist, Dato Tahir from the Mayapada Group has attracted media attention since last year when he was seen on October 12, 2017 in a serious meeting with elected governor of Jakarta Anies Baswedan.
Weaker Second Quarter for Chandra Asri
Pretty much as predicted PT Chandra Asri Petrochemical (TPIA) Tbk reported significantly smaller margins in the second quarter ended June 30, 2018 due to higher average price of naphtha, main feedstock for the country’s only olefin center. Accordingly, the company, co-owned by Barito Pacific and SCG Chemicals, posted substantially lower net profit in the first half.
Corporate Actions: Verena Finance
Financing firm Verena Multi Finance (VRNA) is focused on boosting its capital structure and competitiveness. VRNA’s revenue consistently declined in the past four years. In 2014, VRNA booked revenues of Rp393.5 billion, then down 3.68% to Rp379 billion in 2015, falling further 11.25% to Rp336.3 billion in 2016, and down 2.4% to Rp328.4 billion in 2017.