US-Indonesia Trade Ties
Indonesia booked non oil and gas trade surplus of US$884 million with the United States of America last month, jumped 37.5% year-on-year. In the first three months of 2017, the trade surplus expanded 32.8% to US$2.7 billion. What would be the impact of US President Donald Trump’s order to investigate potential trade abuse allegedly committed by Indonesia?
First Quarter Trade Briefs
Indonesia booked trade surplus of US$1.23 billion last month, jumped 143% year-on-year, thanks to 23.6% growth in export revenues, while import increased by 18.2%. In the first quarter of 2017, trade surplus reached US$3.93 billion, skyrocketed by 137% from the corresponding period of 2016 as export grew 20.8%, while import increased by 14.8%.
Business Alliance: Sariaatmadja + Jack Ma
PT Elang Mahkota Teknologi (EMTK) Tbk, controlled by Sariaatmadja family, has on Monday, April 10, established joint venture company with API (Hongkong) Investment Limited, a company owned by Alibaba Group of Jack Ma. API holds 39% shares in PT Elang Andalan Nusantara, an indirect subsidiary of EMTK.
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.