Momentum to Clean Up Garuda Indonesia
Shares of Garuda Indonesia (GIAA) opened lower by 1.16% to Rp342 this morning with small trading volume. Looks like that investors subscribed the view of Corruption Eradication Commission (KPK) about bribery case implicating the airline’s former CEO Emirsyah Satar. They also expect the case as momentum to take off.
Malaysians Cancel Participation in Maja Project, IPO of Hanson’s Subsidiary?
Extraordinary meeting of shareholders of Hanson International (MYRX) on Friday, January 13, has approved the initial public offering (IPO) of subsidiary PT Mandiri Mega Jaya (MMJ). On Wednesday (Jan 18), interestingly, Malaysian giant Sime Darby Berhad decided not to pursue the joint venture with Hanson. Two other Malaysian companies also did the same.
Masela Block & Petrochemical Industry
So, the government of Indonesia and investors of Masela Block (offshore Maluku) have agreed to boost natural gas production to 10.5 million tons per annum. They, however, have yet to agree on portion of gas processed into LNG and other, including petrochemicals. Looking at President Jokowi’s recent address about natural resources, the chance is big for petrochemicals.
Astra’s Infrastructure Play
PT Astratel Nusantara, subsidiary of Astra International (ASII), has on Tuesday (Jan 17), signed agreement with PT Interra Indo Resources to acquire 40% shares of PT Baskhara Utama Sedaya (BUS), which owns 45% shares in Cikopo-Palimanan toll road. The acquisition gives Astratel an indirect owners of 18% in the toll road, which started commercial operation in 2015.
Infrastructure Journal No. 02/2017
Improvement in the quality of public infrastructure and the availability of modern ports will be crucial to achieve the government’s target of 20 million foreign tourist by 2019. We’ve seen serious efforts to develop prioritized destinations like Labuan Bajo in Flores Island and Borrobudur Temple in Central Java.
Acquisition Opportunities & Challenges from New Mining Regulations
Freeport McMoRan’s willingness to change its contract of work (COW) into special mining business permit (IUPK) creates bigger acquisition opportunity in the coming years. Newmont and Sumitomo Corp have earlier divested their shares in Batu Hijau gold-copper mine to domestic business groups.
OJK’s Policies
The Financial Service Authority (OJK) plans to issue four strategic policies this year aiming to maintain the stability of the country’s financial service industry. That said policies are (1) managing liquidity risk for conglomerates, (2) net stable funding ratio (NSFR), (3) regulations under the Law for preventing and handling the crisis of financial system, and (4) encouraging non-bank financial industry.
Japan’s Continuing Domination of Indonesian Economy (3)
Some people easily concluded about Chinese domination in Indonesian infrastructure development simply because Jokowi-Kalla administration awarded the US$5 billion Jakarta-Bandung high-speed train to the world’s second largest economy. As shown by Japan’s domination in energy projects here, however, the third largest economy remains dominant player in Indonesia.
Japan’s Continuing Domination of Indonesian Economy (2)
Compared to China and South Korea, Japan has stronger presence in Indonesian consumer and property market. Kao Corp and Mandom Corp, for example, are big names to challenge Unilever, P&G, and Johnson & Johnson in personal care and home care market. Eisai and Taisho are substantial players in medicine and health products.
ANTM Overbought, INCO Oversold?
Shares of Aneka Tambang (ANTM) and Vale Indonesia (INCO) were traded heavily Friday (Jan 13) to respond new mining regulations issued by the government. ANTM ended higher by 6.36% with 249 million shares exchanged hands, while INCO crashed 15.93% with almost 139 million shares traded. Have investors overtly positive toward ANTM and negative toward Vale/INCO?