Batang Coal-Fired Power Plant: Finally
Shares of Adaro Energy (ADRO) advanced almost 8% Friday (June 3) as investors responded positively financial closing of the long-delayed Batang coal-fired power plant (CFPP) in Central Java province. The financial closing was marked with the signing of US$2.05 billion loan between PT Bhimasena Power Indonesia (BPI) and the Japan Bank for International Cooperation (JBIC) Friday.
Revisiting Tempuran Mas
PT Pelayaran Tempuran Mas Tbk (TMAS) is one of few shipping companies remain in positive territory amidst global downturn of the industry. The Company posted net profit of Rp55 billion in the first quarter of 2016, down 8.7% from the corresponding period of 2015, but on its way to grow faster.
Mayapada Hospital’s Rights Issue
PT Sejahteraraya Anugrahjaya Tbk (SRAJ), owner of Mayapada Hospital, plans to issue up to 8.03 billion new shares with preemptive rights to refinance existing debentures, purchase land and or acquiring hospitals, working capital, and pay out loans from main shareholder.
The Collapse of Inovisi Infracom: Where’s The Money? (2)
Inovisi Infracom (INVS) was a small company with sales revenue of Rp48 billion in 2008, but then jumped to Rp88.7 billion in 2009, mainly to the growing campaigns through people’s phone/gadget, which was classified ‘unwarranted SMS’ or premium SMS. They skyrocketed in 2010-2011 before the government changed the policy because of public outcry over the so-called ‘phone credit theft’.
Merger & Acquisition: Football & Music
Indonesian businessman Erick Thohir has confirmed divestment of shares in Italian football club Inter Milan to China’s Suning Group less than three years after a group of Indonesian investors assuming majority control.
Pertamina vs Pertamina: Financials
State-owned oil and gas company Pertamina booked net profit of US$1.42 billion last year, down slightly by 1.8% from 2014 as sales revenues fell 40.3% to US$41.8 billion. Petronas, Malaysia’s oil and gas company, meanwhile, posted net profit of US$3.17 billion, crashed 65% from 2014.
Infrastructure Projects Update: Electricity
Rather than spending too much time in analyzing S&P’s decision not to upgrade Indonesia’s sovereign ratings, the country should fix issues contributing to lack of investments. One of them is reliability of electricity supply. President Jokowi was right to move on with his ‘work, work, and work’ campaign by visiting three provinces of Aceh, Bangka Belitung, and West Kalimantan within 24 hours to remind local governments that infrastructure development won’t go anywhere without their support in land acquisition.
Government Infrastructure Projects and Geopolitics
Last, President Joko “Jokowi” Widodo told the press that Japan had agreed to join in on the Patimban port project in Subang, West Java. And on Tuesday earlier this week (May 31), Minister of Transportation Ignatius Jonan confirmed the news. Jonan said that Japan would provide Indonesia with a tight loan, the amount for which was still being discussed. This development came after Jokowi’s recent visits overseas—to South Korea and Russia—in a bid to seek investments for Indonesia major infrastructure development push. It’s interesting to observe which country gets what projects to get a glimpse into Jokowi’s idea of balancing geopolitics.
More Acquisitions in Energy Sector
Media reported plans from some investors, including a consortium of Amata B Grimm Power Group and Global Power Synergy (PTT Group), to acquire 51% shares of PT Medco Power International (MPI), less than five years after Saratoga acquiring the shares from Medco Energi Internasional (MEDC).
Multiplier Effects of Mineral Smelters
Indonesian Harita Group and Chinese company Hongqiao will soon operate commercially the first smelter grade alumina (SGA) in Indonesia. The multi billion USD project guarantees revitalisation of bauxite mining at Cita Mineral (CITA), subsidiary of Harita Group, and its subsidiaries.