Natural Disasters & Tourism Sector
Indonesia welcomed 1.51 million visits of foreign tourist in August, grew 8.44% year-on-year. In the first eight months of 2018, the country welcomed 10.58 million visits, an increase of 12.3% from the corresponding period last year despite series of natural disasters hitting popular tourism spots of Bali Island and Lombok Island.
Samko Timber & SGS
Singapore-listed Samko Timber Limited, an integrated wood resource processor, owned by Sampoerna Strategic Group, invested more in its wholly-owned subsidiary, PT Sumber Graha Sejahtera (SGS), adding cash injection of US$26 million. Its paid-up share capital increased from US$50.38 million to US$76.38 million.
M&A Update
Global investment firm KKR & Co. global investment company L.P. has increased its share ownership in the local food producer Nippon Indosari Corpindo (ROTI). The action was carried out through Singapore’s investment company Demeter Indo Investment Pte. Ltd.
More Works for Federal in Indonesia
Federal International (2000) Ltd is a small company listed on SGX with market value of S$37.3 million, not even 5% of its peak in mid 2007. In the first half ended June 30, 2018, the company generated sales revenue of S$21.2 million only, crashed 67.4% from the corresponding period last year. In the past few months, however, the Company secured more projects from Indonesian companies.
M&A: Freeport, Muamalat, Asuransi Adira
The Indonesian Government, through Ministry of Energy & Minerals Resources (ESDM) has finally signed the sales and purchase agreement (SPA) for a complex US$3.85 billion share purchase deal involving Freeport McMoRan, Rio Tinto and state-owned miner PT Indonesia Asahan Aluminium (Inalum). This is a follow up of the head of agreement (HoA) signed by Government and Freeport-McMoRan Inc (FCX) on August 12, 2018. The ownership divestment of Grasberg is one of the steps Freeport must take as it transfers rights to the mine from its current operating contract to special mining rights.
Corporate Actions
State-owned miner Aneka Tambang (ANTM), subsidiary of state-owned mining giant INALUM, targets to add production capacity by 50% at its ferronickel project, the so-called Halmahera Timur (Haltim), by end of this year. FeNi Haltim will have production capacity of 13,500 tons of nickel (TNi) per annum, lifting ANTM’s total capacity to around 43,500 tons per annum.
Revisiting META
Shares of Nusantara Infrastructure (META) was traded flat at Rp246 on Monday (Sep. 24), but it has gained 12.8% year to date. Investors view this stock positively on expectation of positive revenue outlook along with the expectation that the Indonesian Government will continue to develop infrastructure projects.
Nursalim’s Expansion in Hainan
Court has on Monday (Sep 24) sentenced Syafruddin Arsyad Temenggung, former chairman of Indonesia Bank Restructuring Agency (IBRA), 13 years prison for his decision related to liabilities of tycoon Sjamsul Nursalim more than a decade ago. The same day, Tuan Sing Holdings Ltd, a company controlled by Nursalim family, announced a major expansion in Hainan Island, China with gross development value of RMB5 billion (US$730 million).
Trans-Sumatra & Hutama Karya’s Financials
The government initially proposed capital injection of Rp12.5 trillion to state EPC firm Hutama Karya in the State Budget 2019. The House of Representatives (DPR), however, might agree on a lower amount with some implications to the trans-Sumatra toll road program, especially those in early stage of development.
The Case for EVs in Indonesia
Jakarta city administration pledged to start using electric bus for public transportation this year pursuant to the suggestion from President Joko ‘Jokowi’ Widodo. Then vice governor Sandiaga Uno, who is now running mate for Jokowi’s competitor Prabowo Subianto, said the program will be started for trial operations in some routes of trans-Jakarta. The program was responded with a plan from PT Mobil Anak Bangsa (MAB) to supply 10 units of electric bus to PT Trans Jakarta.