Anies-Sandi & Their Heavy Luggage: Reclamation (7)
Some media outlets quoted Rico Sinaga and Budi Siswanto, both were described key figures in Anies-Sandi campaign team, saying the elected governor and vice governor will be selective in terminating reclamation project in Jakarta. So, whose project will and will not be allowed to proceed?
Anies-Sandi & Their Heavy Luggage/Conglomerates (6)
Paramadina-BTPN Fellow 2013, Paramadina-Benny Subianto Fellow 2012, Paramadina-TP Rachmat Fellow 2013, and Paramadina-Rajawali Fellow 2013 were among names of scholarships provided by Paramadina University to honor the sponsors: Rajawali Group of Peter Sondakh; the late Benny Subianto and businessman TP Rachmat are both shareholders of Adaro Energy (ADRO), where Sandiaga Uno was also a minority shareholder.
Anies-Sandi & Their Heavy Luggage (5)
Congratulations! That’s the only comment from outgoing Jakarta governor Basuki Tjahaja Purnama (Ahok) when asked about VP Jusuf Kalla’s role in the nomination and victory of Anies Baswedan-Sandiaga Uno, who were officially declared elected governor and vice governor by Election Commission (KPU) Friday (May 5). Kalla’s active role in promoting Anies and the decision from Sandiaga Uno to give way has become subject of speculations, which may define the future of Indonesian politics.
Antam & The Troubled Alumina Business
Cita Mineral (CITA), member of Harita Group, which is also holder of the biggest bauxite concessions in the country, started to benefit from commercial operation of smelter grade alumina (SGA) in West Kalimantan. In the first quarter of 2017, CITA booked sales revenue of Rp130 billion, jumped from Rp27 billion only in the same period last year. It is still way below the Company’s peak before the government banning export of bauxite ores, but better than Aneka Tambang.
Salim Group’s Expansion in Hospitality Business
Over the weekend we visited Menjangan Dynasty Resorts in the northwest of Bali Island. This is one of the newest resorts developed by Salim Group, nearby Plataran Resort. In the area, we found a big area next door of Mimpi Resort up to the beach owned by the group.
PLN Financials & Electricity Reform
Like fuel, series of reform in electricity sector by Jokowi-Kalla administration cost the administration criticism from civil society groups and politicians, especially regarding restructuring of tariffs for middle-income group. The reform, however, contributed to changes in the financials of state-owned electricity provider PT Perusahaan Listrik Negara (PLN).
China Nonferrous Metals & Bakrie Group
Nine years ago, Bumi Resources (BUMI) acquired 100% shares of Herald Resources Ltd (Australia)—-owner of 80% shares in PT Dairi Prima Mineral (DPM) for US$375 million with funding from Credit Suisse. State miner Aneka Tambang (ANTM), which held 20% shares in Dairi Prima Mineral, actually wanted to takeover Herald, but lost to BUMI in the competition.
Further Pressure on Hary Tanoe’s Pay TV Business
Intensified pressures from Telkom Group’s IndiHome, Lippo Group’s LinkNet, Sariaatmadja’s Emtek Group, and Sinarmas Group’s DSSA contributed to 7.5% decline in MNC Sky Vision (MSKY), a company owned by businessman and politician Hary Tanoesoedibjo, last year. In the first quarter of 2017, pressures intensified and led to even deeper fall of 18.8% in sales revenues.
Revisiting Bumi Resources
Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net profit of US$88 million in the first quarter of 2017, skyrocketed from US$22.5 million in the corresponding period last year. This was attributable to higher share in net income of associates and joint ventures, and, most of all, US$148.6 million ‘gain’ from tax adjustment.
SmartFren: Strong Sales, but…
Indonesian consumers continue to spend more in telecommunication. Growing use of social media through smart phones and gadgets, including during election of regional leaders, might have benefited telco operators. Other than market leader Telkom (TLKM), which reported strong performance in the first quarter, PT SmartFren Telecom (FREN) Tbk posted sales revenue growth of 36% in the period.