Sukanto & Domestic Politics
Sukanto Tanoto is still one of the richest men in Indonesia. His Royal Golden Eagle (RGE) Group is among the most aggressive investors with two major projects in pulp & paper industry with combined investment of above US$1.3 billion. The Group, however, at the same time seems at odd with the government.
Those Continue to Invest: Nabati Group
Majalengka Regency in West Java province is a growing area, thanks to construction of Kertajati international airport, which is expected to be commercial this year. The airport will later on be connected to Cikampek-Palimanan section of trans-Java toll road. Looks like that the area attracted more investors recently.
Japan Acquires More: Noda Corporation
Japanese companies continue their aggressive investments in Indonesia. After MUFG’s acquisition of Bank Danamon (BDMN), Noda Corporation decided to acquire more shares in its Indonesian joint venture.
Ratu Prabu and the US$26 billion LRT Project
Sandiaga Uno, Vice Governor of Jakarta recently told the press that PT Ratu Prabu Energi Tbk (ARTI), a company with businesses in energy and property, will develop light rail transit (LRT) project in Greater Jakarta dan surrounding cities (200 KM) with investment of US$26 billion. Some, however, questioned credibility of the plan.
Stronger Q3/17 for Medco
Medco Energi (MEDC) is among the best performing stocks with 188% gain since January 2017. Still, at the current price, MEDC is valued below its equity as at Sept 30, 2017, despite strong financial performance. In third quarter ended Sept 30, the Company booked net profit of US$83.65 million, bigger than the first six months of 2017.
Big Groups in Financial & Technology Ventures (3): Astra
Astra International (ASII) is one of the largest business groups in Indonesia with diversified interest in agriculture, automotive, banking, micro and consumer financing, heavy equipment, property, construction, mining, toll road, water infrastructure, port, and information technology (ICT). Like other major business groups, Astra has actually invested significantly in e-commerce in the past few years.
Djoko Setiadi: The Cyber Agency Boss
President Joko ‘Jokowi’ Widodo has installed Djoko Setiadi as chief of the newly established Cyber Body and National Encryption Agency (BSSN), a powerful agency reported directly to the President. It is a merger of the country’s national encryption agency and directorate general of Application and Informatics at Ministry of Information & Communication.
Brantas Abipraya
The Ministry of Public Works and Public Housing (Kemen-PUPR) is working on some improvements with the Jakarta Presidential Palace’s drainage system to minimize flood risk. This construction work is done by State-Owned company PT Brantas Abipraya. PT Brantas Abipraya is an interesting company to discuss.
Revisiting Sawit Sumbermas & Related Party Transactions
Sawit Sumbermas (SSMS) is among the highly valued stocks in the plantation sector. At the last quoted price, SSMS was valued 3.5 x equity, more than twice of established player Astra Agro Lestari (AALI), which was valued 1.4 x equity only. Unlike AALI, which lost 23% year-to-date, SSMS gained slightly by 3%.
Risco-Tap Oil Conflict Continues
Conflict between Risco Energy, a company controlled by Indonesian businessman Rizal Risjad, and the management of ASX-listed oil and gas company Tap Oil Ltd, continued. Executive chairman and two non-executive directors of Tap Oil informed ASX this morning that they do not accept reasons for the removal of James Menzies and Peter Mansell as directors.