Aneka Tambang Operation Turns to Loss
State miner PT Aneka Tambang Tbk (ANTM) suffered operating loss of Rp250.7 billion in first half (H1) of 2016, against operating profit of Rp103 billion in the corresponding period of 2015, as sales dropped 47% to Rp4.16 trillion from previous Rp7.85 trillion. The Company only booked gross profit of Rp119.8 billion while operating expenses reached Rp370 billion. In H1/15 period, ANTM booked gross profit of Rp528 billion, with operating expenses amounted Rp425 billion. But ANTM reported positive bottom line (Rp11 billion profit) for H1/16, against Rp396 billion loss for H1/15, helped by other income of Rp374 billion. In H1/15 period, ANTM posted other expenses of Rp287 billion.
The Development of Dumai Refinery Unit II to be Accelerated
PT Pertamina is going to accelerate the development of Refinery Unit (RU) II Dumai, which is expected to meet the demands for fossil fuel in Sumatera. Pertamina has previously signed the note of agreement with Saudi Aramco for RU II Dumai and RU VI Balongan, but priority was assigned to RU II Dumai. The President Director of Pertamina Dwi Soetjpto said that RU II Dumai has advantages in terms of possessing the right economic scale, land preparedness, and consumption of production, hence the priority.
Update on Participating Interest in Oil & Gas Blocks
Many of the Oil & Gas producing regions in Indonesia are demanding for their share of Participating Interest (PI). Some regions have asked for an increase in PI from 10 percent to 15 percent. But the Central Government has refused the plan, asserting that 10 percent is already the proportionate share. “If regional governments would like to increase their share in oil and gas blocks, the should do so by way of regular business mechanism, just like other contractors. If the percentage were to be increased by way of privilege, investors may be put off. We have to balanced. State-owned enterprises get their share, and investors too,” Acting Minister of Energy and Mineral Resources (ESDM) Luhut Binsar Panjaitan told Analysis by Yosef Ardi on Monday, August 29.
First Half Results: Holcim, Siantar Top & Timah
Unlike its peers, PT Holcim Indonesia (SMCB) Tbk, the third largest cement producer in Indonesia, booked net loss of Rp51 billion in the first half of 2016, dragged down by substantially weaker performance in the second quarter. How about food processor Siantar Top (STTP) and tin producer Timah (TINS)?
35,000 MW Project Way Behind Schedule
The 35,000 MW electrification project has not been running smoothly. Joko “Jokowi” Widodo’s Government had targeted the completion of the project in 2019, but t0 date, only 22% of the project have been done, with only 10.000 MW that can be expected for 2020. Clearly, the project is experiencing a major setback, which has been mostly caused by land procurement problems.
Battle of the Titans: Jawa-1 Power Project
Four groups are now competing to develop the giant Jawa-1 combined cycle power plant with design capacity of 1600 MW and estimated investment of US$2 billion. This is one of power plants to be built under Jokowi-Kalla’s 35,000 MW program. Four other groups have decided not to participate in the competition, including two groups linked to two powerful persons in the cabinet.
CVC & Siloam Hospitals
CVC Capital Partners has decided to invest Rp2.2 trillion in PT Siloam Hospitals Tbk. CVC acquires some shares from Lippo Karawaci (LPKR) and Ciptadana plus subscribing new shares to be issued by Siloam Hospitals, whose ‘market value’ is less then one third of Mitra Keluarga Hospitals.
Revisiting Chandra Asri
In late April we posted an article about Chandra Asri Petrochemical (TPIA), the largest petrochemical company in Indonesia, highlighting its strong performance in the first quarter. Back then, Chandra Asri’s market value was Rp14.1 trillion. Today, the company’s value already surged to Rp32.9 trillion as investors appreciated its even stronger performance in the second quarter.
Shenhua’s Grip in Indonesia (2)
China Shenhua Energy Co Ltd generated net profit of RMB10.83 billion in the first half ended June 30, 2016, down 19.3% from the corresponding period of 2015. Still, Shenhua is among the most profitable energy companies in the world, which, interestingly steps up its investments in Indonesia.
Tax Amnesty in Action (12): Big Fishes Netted…
Friday, August 26, was yet another promising day in the tax amnesty program. Around 1682 taxpayers joined the program to declare Rp26.84 trillion worth of assets, new daily record. Interesting that two taxpayers seemed to have declared Rp13 trillion worth of assets that day.