Siloam Hospital vs Mitra Keluarga: Valuation Gap
Siloam Hospital (SILO), controlled by Lippo Group, has entered into agreements to acquire Hosana Medica hospital in Bekasi, West Java province for Rp150 billion. At the same time, Siloam also inaugurated commercial operation of Siloam Hospital Bogor in West Java. Still, shares of SILO ended lower by 1.9% to Rp10,400 on Friday (Jul 14), only slightly above its IPO price four years ago.
Modern Group & The Collapse of 7-Eleven (1)
What a mess! Modern International (MDRN), parent of the company operating 7-Eleven convenience stores in Indonesia, is now traded way below Rp50 (the lowest quotable price on IDX) following the closure of the retail business only eight years after Modern Group signed the master franchise agreement.
Reckitt Benckiser in Indonesian Consumer Market
So, Reckitt Benckiser has completed acquisition of Mead Johnson Nutrition Company for US$16.7 billion last year. The transaction makes Reckitt Benckiser (RB) a stronger player in consumer health and hygiene market, including in Indonesia, where both companies have respective operations.
Infrastructure Journal No.26/2017
International Finance Corporation (IFC), investment arm of World Bank, is now working on US$150 million financing for PT Indonesia Infrastructure Finance (IIF) for a pipeline of infrastructure projects in Indonesia. According to project disclosure materials available at ifc.org, the proposed IFC investment consists of US$50 million of loan from IFC’s own account and US$100 million of mobilization.
Key Takeaways from Bisnis Indonesia Interview with Jokowi
Bisnis Indonesia newspaper published an interesting special interview with President Joko ‘Jokowi’ Widodo this morning. He talked about lots of issues: politics, macroeconomics, infrastructure, household consumption, and even negotiation with Freeport Indonesia. Jokowi was expressive and casual in responding tough questions. Full of energy and optimistic. Knows and cares about details.
Mixed Data from Fisheries Companies
Jokowi-Kalla administration, led by the flamboyant fisheries minister Susi Pujiastuti, has been focusing on fighting illegal fishing in the past two years. Some, including her predecessors at the ministry, criticize Susi’s approach, but she, with strong support from President Jokowi, claimed success in protecting the country’s resources.
Microcell Pole, The New Battleground for Competition?
Microcell pole (MCP) is said the new battleground for competition between Indonesia’s tower companies. Some started to enjoy strong revenue growth from leasing of MCPs. Centratama Telekomunikasi (CENT), Bali Towerindo (BALI), and Dayamitra Telekomunikasi (Mitratel)—-subsidiary of Telkom (TLKM), are currently the most aggressive players in the field.
Major Bridges & Jokowi 2019
Infrastructure improves quality of life. In the words of World Bank executives, anything the government can do in this field will improve welfare of Indonesians. Other than toll roads being built in Java, Sumatra, Sulawesi, and Kalimantan, Jokowi-Kalla administration spends more in non-toll national and provincial roads. Some major bridges and flyovers are being built all over the country, whose commercial operation might boost Jokowi’s electability ahead of 2019 elections.
Infrastructure Journal No.25/2017
The long Lebaran holidays is over. Most construction workers returned to major projects, including mass-rapid transit (MRT), light-rail transit (LRT), ports, railways, airports, and toll roads. As predicted, some toll roads will soon enter commercial operation in Java and Sumatra pending successful trials. The closest is Bawen-Salatiga (17.6 KM) section of Semarang-Solo toll road in Central Java.
Indonesia Tech Bubble?
PT Pos Logistik Indonesia, subsidiary of state postal service PT Pos Indonesia, has decided to cancel acquisition of three tech startups planned since 2013 to focus on the preparation of initial public offering (IPO). One week later, media reported about Indosat (ISAT)’s decision to reduce its exposure in digital business, including Cipika and Dompetku.