Wilmar posts US$1.88 billion profit

Wilmar International Ltd, Asia's leading agribusiness group where Indonesian businessman Martua Sitorus has substantial shareholding, posted a record net profit of US$1.88 billion last year, a 23% increase from 2008.

Its strong performance was underpinned by robust earnings reported by Oilseeds & Grains, Consumer Products and Plantations & Palm Oil Mills. All business segments posted higher sales volume, resulting in a 19% increase in total

revenue to US$6.9 billion. Additionally, commodities prices were higher compared to 4Q2008.

The Board has recommended for shareholders’ approval a final tax exempt dividend of S$0.05 per share. With the interim dividend of S$0.03 per share paid in Sept 2009, the total dividend paid and proposed for the financial year ended December 31, 2009 is S$0.08 per share, representing a dividend payout of about 20%.
As at December 31, 2009, the Group’s total assets stood at US$23.4 billion while shareholders’ funds amounted to US$10.9 billion. Net gearing ratio was higher but remained conservative at 0.41x.
Wilmar was last quoted at S$6.5 on SGX. At that price, Wilmar has market capitalization of S$41.5 billion, soared 128% from March 2009. Imagine how rich is Martua Sitorus. Just hope that this company and its owners paid tax properly in its Indonesian operations.

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Exchange Threats over Century

President SBY's special staff for legal affairs Denny Indrayana claimed one political party tried to exchange a legal case with softer tone on Century case investigation. Andi Arief and Velix Wanggai, SBY's other special staffs, "threatened" to file a police report on Muhammad Misbakhun, politician from Prosperous Justice Party (PKS).

"(We had reported the case) to Special Task Force to eradicate mafia in the judicial system. Our plan is to report the case to National Police," Andi Arief said. Well, they don't have to tell public about that. If they know someone committed crime, go straight to the police and provide evidences.

"One party was ready to change its stance in the Century case as long as the President is willing to negotiate on legal case," Denny said. It's better for Denny to publish the name of the party as well, otherwise his statement is worthless.

Earlier we had read ridiculous threats exchanged by politicians from SBY-Boediono's ruling coalition. Corruption on procurement of cows for the poor, allegation of bribery in the election of senior deputy governor, tax evasion allegation, etc. Bring them all to court! We're tired of statements. Actions speak louder!

Demokrat leader threatened to kick out members who are not loyal to the President. "Now we know who are friends and enemies," Amir Syamsyuddin, secretary general of Demokrat said. Well, then make up your mind!

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Richard Ong resigns, Martin Purvis new CEO for Straits Asia

Richard Ong Chui Chat, 62, has resigned as Chief Executive Officer of Straits Asia Resources Ltd, a coal producer listed on SGX and controlled by PTT (Thailand) which controls two concessions (Jembayan and Sebuku) in Kalimantan.

Richard Ong has a direct and a deemed interes in 7.625 million and 550,000 shares of Straits Asia which dropped further by 2.42% on Friday trading. The stock surged 270% in the period of March 2009 until early January 2010. But in the past eight weeks, the stock has lost 26%.

Martin Purvis, a director of Straits Asia since November 2006, has been announced as the new CEO, taking over the role from Richard with effect from March 1, 2010. Martin was responsible for the original development of the Company’s Sebuku Coal Mine in 1997. He is a mining engineer with more than 25 years experience in the resource industry working in senior management roles in Indonesia, South Africa and Australia. Mr Purvis is currently Chief Executive Officer of PTT Asia Pacific Mining, which controls 46% of Straits Asia's shares.

Mr Ong took up the role of Chief Executive Officer of Straits Asia in May 2007. Straits produced about 9 million tons of coal per annum from Jembayan and Sebuku mines. Thailand's PTT acquired majority control of Straits Asia Resources Ltd from ASX-listed Straits Resources Limited.

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Lippo's Auric still in red

Auric Pacific Group Ltd, wholesaler and food retailer controlled by Lippo Group, reported net loss S$3.4 million last year, declined from S$33.8 million loss in 2008. The swing around of $30.4 million was largely attributable to better results in relation to investment related activities.

Auric reported net sales revenue of S$405.96 million last year, declined slightly by 3.3% from 2008, thanks to improvement in the last quarter of 2009. Wholesale and distribution contributed S$235 million of revenues, down 2%, while food retail inched up 5.7% to S$116 million.

Manufacturing and food court, meanwhile, increased 1.7% and 251% respectively. But these segments contributed only S$53.78 million of sales revenue.

Auric Pacific had total asset of S$362.79 million in Dec 31, 2009, declined slightly from S$393 million in Dec 2008. The stock is rarely traded.

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I'm (Not) Responsible

Yesterday, media quoted President SBY saying, "as the head of the State, of course I'm responsible for what's going on in this country, in development and other sectors." Media interpreted that as a response statement to final conclusions made by nine political parties on Century case investigation.

Today, the President's spokesperson Julian Aldrin Pasha, corrected that saying "the President will not takeover the responsibility on Century case." President SBY is scheduled to give a speech as formal response to the issue sometimes early next week. "I clarify, that President never said he will takeover the responsibility (on Century case)," Julian said. What an ambiguity! How would people like Boediono and Sri Mulyani Indrawati see this?

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Australian dies after falling from apartment

An Australian identified as Luke Thomas Devine, 24-year old, is confirmed died of fatal fall from 25th floor of an apartment building in Surabaya, East Java last night.

Anom Wibowo, head of police detective in Surabaya, said Luke fell from the apartment building (Waterplace) where he and girlfriend identified as Tabitha, also an Australian, were drunk. Police predicted Luke fell around 02.15 Surabaya time.

Police has examined Tabitha (23) and Agung Prasetyo, security officer at the apartment. Anom said that according to Tabitha, she went to a party at around 10PM last night where Luke drinks alcohol with his five friends. Tabitha and Luke then moved to another party at Jl Sumatera. "From his girlfriend's testimony, Luke drunk in the parties at two different places. They then returned to the apartment at dawn, heavily drunk," Anom said.

But autopsy by Dr Soetomo Hospital in Surabaya found no traces of alcohol in Luke's blood system. "As of now, very little possibility that he was under the influence of alcohol," one officer at the hospital told Detik.com.

The officer said if Luke was drunk, the smell of alcohol shall stay for at least 12 hours. Luke is a teacher at EF English Course.

The security officer at the apartment told the police that Luke was drunk before falling from the apartment.

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Federal profits jumps 32.6%

PT Federal International Finance, a motorcycle financing company controlled by Astra International, reported net profit of Rp812 billion last year, increased 32.6% from 2008 despite lower sales revenue of 3.7%.

FIF reported net sales revenue of Rp4.3 trillion or about US$458 million last year, declined 3.7% from 2008 on lower motorcycle sales nationwide. But the company managed to boost its profitability, most likely due to bigger gap between cost of funds and interest rates charged to motorists. Profit margin soared 38% to 12.9% last year.

The net profit of Rp812 billion represents ROE of 27.9%, increased 7.4% from 2008 and ROA of 8.9%. FIF had total asset of Rp9.13 trillion, declined slightly by 0.4% from 2008 with liabilities down 8.7% to Rp6.2 trillion.

For comparison, Adira Dinamika Multi Finance (ADMF), a subsidiary of Bank Danamon, reported sales revenue of Rp3.94 trillion, increased 16.6% from 2008, while net profit grew 18.8% to Rp1.21 trillion. Adira then reported ROE of 45.7% and profit margin of 30.8% last year. Thanks to the motorists who're willing to pay up to 42% interest per annum.

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Interra profit dropped 13%

Interra Resources, an oil and gas company controlled by Edwin Soeryadjaya, reported net sales revenue of US$12.62 million last year, declined 28% from the previous year, while net profit dropped 13% to US$1.48 million.

The 28% decrease was a result of a combination of lower oil prices and decreased production (mainly in Indonesia oil fields) during the year. Shareable production in 2009 of 270,953 barrels was lower as compared to 302,450 barrels in 2008.

The weighted average oil price in 2009 of US$65 per barrel was significantly lower than of the corresponding period of 2008 of US$100 per barrel. The cost of production in 2009 of US$9.18 million was lower compared to US$10.71 million in 2008. As a result, gross profit in 2009 was US$3.44 million as compared to gross profit of US$6.77 million in 2008.

Other income for 2009 was significantly higher than 2008, due largely to the reversal of impairment and provision made against the Myanmar assets of US$3 million, partly offset by a decrease of interest income from US$0.51 million in 2008 to US$0.10 million in 2009 as a result of lower interest rate in 2009. The increase was partly offset by a provision made for the write off of the exploration well (MS-1) and pending relinquishment of Block L3 in Thailand of US$1.57 million and US$0.47 million respectively.

As a result, the net profit after tax for 2009 was US$1.48 million. This represented a slight decrease of 13% from 2008 of US$1.70 million. Still, Interra's stock price has tripled in the past 12 months.

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EWC revenues grew 7.17%, LNG project delayed

Energy World Corporation reported 7.17% growth in sales revenue for the July-Dec 2009 to US$42.55 million, largely due to the contribution of additional revenue from the Sengkang power and gas projects in South Sulawesi, following the commissioning of the 60 MW power plant on November 17, 2009.

Sengkang power plant is owned and operated by PT Energi Sengkang where EWC owns 95% shares, while Medco Group holds the balance. The power plant was initially designed to deliver 135 MW in combined cycle to the South Sulawesi electricity grid operated by PT PLN, but has subsequently been expanded to deliver 195 MW.

EWC also owns 100% interest in Sengkang PSC which sold 13646 TJ of gas during the financial year ended June 30, 2009 compared with 9821 TJ in the previous financial year. Gas sold for the the half year ended Dec 31, 2009 was 6108 TJ.

How about the Sengkang LNG project?

Well, EWC claimed the facility will have a production capacity of 2 million tons per annum and combine four modular LNG trains, each with a 500,000 tons capacity. The initial plan was to operate the first two modular LNG trains in June 2010, but due to a series of delays in the approval process, the facility will not now commence until 2011.

EWC's stock has lost 60% its value since June 2009...

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AED secures financing for Indonesian acquisitions

AED Oil Limited has entered into two new financing facilities and repaid its maturing convertible notes. AED now has long term finance in place to fund its expansion into South East Asia through the acquisition of interests in Brunei and Indonesia. AED has previously entered into acquisition of two blocks in Indonesia, Rombebai and South Madura.

Highlights of the refinancing are: (1) The issue of new convertible notes to the value of US$20 million and an option if funds are required and subject to certain circumstances to issue further New Convertible Notes to the value of US$10 million; (2) A$20 million general purpose loan facility with Deutsche Bank AG, and (3) US$27.5 million 6.5% convertible notes repaid. AED has cash balance of about A$50 million in addition to these new financing facilities.

The oil and gas gas assets purchased are controlled by two Indonesian businessmen.

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United Tractors profit soars 43.5%

PT United Tractors (UNTR) Tbk reported net profit of Rp3.817 trillion or about US$406 million last year, increased 43.5% from 2008 on improved margins. Sales revenue actually grew only by 4.8% to Rp29.24 trillion.

UNTR reported EBITDA of Rp7.37 trillion last year or 25.2% margin against 21.1% in 2008. Construction machinery sales declined 11% to Rp10.98 trillion due to substantially lower volume of heavy equipment sales to mining, plantations, and forestry sector. Komatsu sales dropped 28% to 3,111 units. Nissan Diesel sales also declined from 781 to 634 units.

Mining contractor Pamapersada contributed Rp15.42 trillion of sales revenue, increased 33% from 2008 on higher coal production of 15% to 68 million tons. In the meantime, own coal production declined 35% to 2.4 million tons.

UNTR closed at Rp17150. With EPS of Rp1147 last year, the stock is traded with PE multiple 15 on 2009 earnings. At the current price, UNTR has market cap of Rp57 trillion or about US$6.1 billion, the tenth largest on IDX.

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INCO nominates Tony Wenas as new CEO

PT International Nickel Indonesia (INCO) Tbk nominates Tony Wenas as the new CEO to replace Arif Siregar who has tendered his resignation.
Tony Wenas most recently held the position of director and executive vice president/general counsel with PT Freeport Indonesia. Tony graduated from University of Indonesia's law school.

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Elnusa-Nordic gets new contract

Oil and gas services company PT Elnusa (ELSA) Tbk and its partner Nordic (Norway) have just secured 2D geoscience project for Seruway area, Aceh for a period of two years.
Elnusa provided no details about the new contract. Elnusa is accomplishing two 3D seismic projects worth US$33.7 million in Kalimantan and Papua. These projects will be accomplished in June.
Elnusa expects to get Rp1.4 trillion revenue from geoscience projects this year, while the consolidated revenue target for 2010 is Rp4.46 trillion, increased 29% from last year.

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PSP claims encouraging gold-copper results in Aceh

Prosperity Resources Limited announced what it called as encouraging results from the initial scout drilling program at Pala in Pinang-Pinang project in Aceh province. The sixteen shallow diamond drill holes have intersected broad intervals of porphyry-related gold-copper mineralization.

The results include 22 meters of 1.12 g/t gold and 0.4% copper, 9 meters of 1.68 g/t gold and 0.54% copper, 7 meters of 1.13 g/t gold and 0.35% copper, 8 meters of 2.12 g/t gold and 0.18% copper, and 6 meters of 3.62 g/t gold and 0.06% copper.

"The results from this first phase shallow drilling program are encouraging and give us a better understanding of the geology at the Pala prospect. Our view has always been that Pinang Pinang is a deeper porphyry target and the next phase of work will involve generating the deeper drilling targets," Mo Munshi, chairman of Prosperity told ASX this morning.

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Arbitration Tribunal orders Lippo to pay Astro

Astro All Asia Networks Plc told Malaysian stock exchange last Friday that it had received a further award from the Singapore International Arbitration Center ordered Lippo Group subsidiaries to pay Astro in the amount of Rp6 billion in in relation to the costs incurred at the preliminary hearing in an arbitration proceeding.

Astro brought companies associated with Lippo Group to SIAC over the failure to complete a proposed joint venture in PT Direct Vision. The award, dated February 5, 2010, ordered the respondents, PT Ayunda Prima Mitra (APM), PT First Media (KBLV) Tbk, and PT Direct Vision (DV) to pay Astro RM2.22 million.

"This follows an earlier ruling in May 2009 after a preliminary hearing in April of that year in which Astro and its associated companies received an award from the arbitral tribunal which made it clear by rejecting the challenge to its jurisdiction and confirming that it had jurisdiction to hear and determine any dispute within the scope of the agreements between Astro associates and the Lippo Group," said Todung Mulya Lubis, counsel to Astro in Indonesia, in a statement.

Astro received a further partial award on October 3rd, 2009, in which the arbitral panel confirmed, among others, that there is no continuing binding JV agreement between APM, KBLV, and Astro affiliates and therefore there is no obligation from Astro or their affiliates to provide cash advances and/or the supply of services to PT Direct Vision.

Last week, West Jakarta District Court dismissed the claim brought by SkyVision against Astro All Asia Networks Plc and several others, on the grounds that, amongst others, Skyvision lacks legal standing to bring the action. Skyvision is at liberty to file an appeal within 14 days.

PT MNC Sky Vision filed an objection against AAN and its subsidiary, All-Asia Multimedia Networks FZ-LLC, and several others to the ruling by the KPPU of August 20, 2008.

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Carrefour wins

French retailer giant Carrefour wins court battle against Indonesia's anti-monopoly watchdog KPPU.
South Jakarta district court accepted Carrefour's objections to KPPU ruling issued in November 2009. KPPU considered Carrefour violated anti-monopoly law No. 5/1999 article 17 point 1 and article 25 point 1a about dominant position. KPPU believes the acquisition of PT Alfa Retailindo by Carrefour has triggered the violation of dominant position clause.
Carrefour then challenged the ruling to South Jakarta district court. Responding to the court tuling, KPPU, the business competition supervisory commission, plans to file judicial review.

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Stop, or My Mom will investigate...

The country has been entering a situation where Sylvester Stallone repeatedly shouts...Stop, or my mom will investigate...That's right. Public is entertained with an action comedy. Lots of State institutions are now playing Estelle Getty.

Public has no option than to get impression that the alleged tax evasion investigation on Bakrie-related companies (Bumi Resources, Kaltim Prima Coal, and Arutmin Indonesia) is more like Sly shouting to Bakrie and Golkar Party to stop hassling him on Century case.
Aburizal Bakrie told Sly (Joe Bornowski) in his blog (www.IcalBakrie.com) that "on the tax issue, I think it is a matter of interpretation of tax laws. The issue shall be settled in court, not in political arena or media."
But Sly said: "I don't believe in the corrupt court system. You will surely win there. I need you to stop hassling me on this Century thing, or my mom will investigate you endlessly. She has one case now on KPC, and then will follow with BUMI, Arutmin, and Bakrie Investindo. So, you better stop now." Bakrie resisted Sly's call and so they're exchanging gunshots. Both wounded, but survived.
Sly is also going after Bakrie's colleagues: Idrus Marham (secretary) and Setya Novanto (treasurer). Sly considered them "bad-mouthing too much on Century." Sly filed a report to his Mom about an allegation of bribery committed by Idrus and Setya eight years ago.
Sly mounted further pressures on Bakrie with allegation of money flow from his younger brother Nirwan Bakrie to Emir Moeis (legislator from PDI-P). "Mom, do something about Emir. His party is such a pain in the ass...," Sly told Estelle.
"OK, OK, but you live under one "roof" with Bakrie at the unit. Isn't he one of your partners. Why don't try to find new partner?"
"Ma...That's not easy. He helped me a lot to win back my position. But if he keep harassing me like this, I would ask my boss to get new partner."
"Now you're going after Emir. Are you going to burn the whole unit?"
"I'm hoping to keep Bakrie a partner. I just want him to stop asking me replaces my lovely accountant. I love her so much. I just want to send message to Bakrie that I could make his life even more miserable."
"So, you're not serious about this tax investigation?"
"I wanted a serious investigation. But what if my friend, who contributed substantially in the last race, committed the same crime?"
"Son, what do you want actually?"
"Just make it slow, Ma. You did good job on Asian Agri before. They've been scared off and never touched my friend since then. I hope I could get similar outcome from your actions this time."
Lucky for Sly to have a Mom like that. She seems frail and weak, but capable of strong actions in some circumstances, especially when it comes to shooting his beloved son's opponents. Still, she told her son like this: "Joey, be a man. Settle your problems with Bakrie as a grown up."
by Haryanto Suharman & Yosef Ardi (taken from yosefardi.com)

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BNI to divest brokerage subsidiary

State bank BNI plans to offload 30% shares in its subsidiary PT BNI Sekuritas in the second half. BNI expects Rp300 billion from the divestment.
BNI also opens the opportunity to divest majority shareholding in the brokerage firm. Other than that, BNI also plans to float PT BNI Life, insurance subsidiary, to the stock market. Next year, BNI plans to acquire one bank with core capital below Rp100 billion.

BNI reported strong performance last year with net profit more than doubled from 2008. But the stock gained only by 1.6% today. The stock surged 227% in the period of March-October 2009. Of course it's almost impossible to get similar gain this year. In fact, BNI has lost 10% since October 2009.

Main concern on this bank is CAR. The 13.7% CAR is too tight for further lending growth, especially to implement Basel II Accord principles.

BNI plans to issue new shares (rights issue) of up to Rp4 trillion to strengthen its capital in the second half. But the State's ownership would dilute if government will not participate in the rights issue.

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Bank results failed to lift IDX

IDX composite index inched up 0.04% in the first session this morning despite strong 2009 financial results announced by two major banks, CIMB Niaga and BNI.

Trading was relatively thin. Bumi Resources, which usually dominates the trading, recorded only 18 million shares exchanged hands. The busiest stock was Eterindo (ETWA) but its trading value was only Rp16 billion. Most banking stocks lost ground, except BCA, BNI, and Bukopin, also on thin trading.

Well, most investors enjoy the Chinese New Year holiday. Singapore, Malaysia, and Hong Kong markets would only resume trading tomorrow. Shanghai will return next Monday.

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Trading halt on BATA, Mulia, Tiga Pilar lifted

Indonesia Stock Exchange (IDX) has resumed trading of PT Sepatu Bata (BATA) Tbk, PT Mulia Industrindo (MLIA) Tbk, and PT Tiga Pilar Sejahtera Food (AISA) Tbk as of this morning. Trading of these stocks have suspended for failures to pay annual listing fee (ALF).

The last quoted price for BATA, shoemaker, was Rp36,000 in January 11. But the stock had rarely been traded with average volume of less than 40,000 stocks per day. Mulia Industrindo, producer of ceramics and glass, is even worse. The stock's average trading volume is only 13,000 stocks in the past three months. Tiga Pilar, food processor, is also the same. Trading value of this stock is even less than Rp10 million per day.

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Asian stocks opened lower

Stock markets in the region opened mainly lower this morning led by Indonesia Stock Exchange (IDX), which lost 0.53%. Nikkei and All Ordinaries dropped by 0.4% respectively, while Singapore, Hong Kong, and Shanghai are closed for Chinese New Year holiday.

South Korea's KOSPI also declined 0.3%, mainly on worries about China's decision over the weekend to raise banks reserves requirement. Dow Jones Industrial Average (DJIA) and Footsie dropped 0.44% and 0.37% respectively last Friday.

Coal-related stocks opened mainly lower on declining thermal coal spot prices in Australia, South Africa, and Europe last week. Adaro, Bumi Resources, and Indika opened lower by 1% respectively, while BHP and Rio Tinto lost 1% and 1.7% respectively in Sidney, Australia this morning.

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Multimedia Content regulation

Public, including content providers, bloggers, facebookers, twitters, have until February 19 to review the draft of Multimedia Content Regulation. While government argues such regulation is needed to protect public from hassles caused by abuse of electronic information, documents, and transactions, some worried the regulation could be a setback to freedom of expression.

Public may review the Draft of ICT Minister Regulation about Multimedia Content and provide feedbacks to gatot_b@postel.go.id. One week might not enough to review the draft, but content providers have no choice than to review quickly the draft.

Pornographic contents (Article 3) and gambling (Article 4) are among the targets. But coverage of contents to be regulated is way beyond them.

Article 5 forbids distribution, transmission and or give access to contents which contained information about actions that may degrade physical ability, intellectual capacity, etc of someone. (Needs further clarity on this, because criticizing public officers could fall into the definition of this article)

Article 6 forbids contents which contain:

(1) Hoax which may cause losses for consumers in electronic transaction:

(2) Information which triggers hatreds among individuals, group of religion, tribes, etc;

(3) Extortion

Article 7 forbids contents which contain:

(1) Information on privacy (authentic deeds, members of the family, medical records, financial records, assets, income, bank accounts).

(2) Intellectual Property Rights

Internet Providers are given the rights for blocking multimedia content upon the decision of Multimedia Content Team or the provider itself.

The Multimedia Content Team will be consisted of government officers (50%) and public (50%). Such composition may be too government-heavy. May be 30% government and 70% civil society would be fair. Why not an independent body instead?

Article 32 point 2: Multimedia Content Team is chaired by Director General (at the ICT ministry). Why should a director general at ICT Ministry?

Article 24 may be too excessive because five members of the Multimedia Content will be all government officers who will examine one or series of contents based on reports from public, State apparatus, and or Internet providers.

The Team will be assisted by a secretariat to be instituted further by Telematic Application Director General. The Team shall be established within one year since the regulation applied.

Well, this team could be a new (censorship) superbody in the country.

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Adhi Karya wins Mangkuluhur Tower

Construction company PT Adhi Karya (ADHI) Tbk wins Rp455.5 billion contract to design and build Mangkuluhur Office Tower in Jl. Gatot Subroto Kav.1 (Semanggi area), Jakarta.

Mangkuluhur Office Tower is owned by PT Wisma Purnayudha Putra with proposed three floors of basement and 30 storeys of office space. The project will be completed in 21 months.

PT Adhi Karya Tbk is one of the largest construction companies in Indonesia. The company reported sales revenue of Rp4.857 trillion in nine months of 2009 or about US$520 million, increased 32.6% from the same period in 2008. But the company only reported net profit of Rp64.15 billion or a profit margin of 1.3%.

The company had total asset of Rp5.578 trillion or about US$600 million as of Sept 30, 2009. The stock gained 4.05% today to Rp385. At that price, ADHI has market capitalization of Rp693 billion only or 12.4% of total asset. The stock has lost 21.4% its value since October 20, 2009.

Who owns PT Wisma Purnayudha Putra? It's not clear. Some said Tommy Soeharto, son of the late former president Soeharto, owns substantial shares in the company. Probably because Mangkuluhur is the middle name of Tommy's son, Dharma. Politician from President SBY's Demokrat Party, Roestanto Wahidin Dirdjojuwono, is listed as commissioner in this company since 2003.

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Star Energy lists US$350 Million Notes on SGX next week

Star Energy Geothermal (Wayang Windu) Ltd's US$350 million Senior Secured Notes due 2015 will be listed and quoted on Singapore Stock Exchange (SGX) bonds market next Wednesday.

The joint lead managers of the Notes are Barclays Bank Plc, Nomura International Plc, and Standard Chartered Bank. Star Energy Geothermal (Wayang Windu) Ltd controls the geothermal power plant in West Java. The company is expanding the facilities. Most of the proceeds will be used to refinance existing debts.

Another Indonesian energy company PT Cikarang Listrindo had previously listed US$300 million 9.25% Notes due 2015 also on SGX.

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Talisman oil & gas output grew 19%

Talisman reported 19% growth of oil and gas production in Indonesia to 66.500 barrel oil equivalent per day with record production from Corridor block due to higher contract takes.

Last month, Talisman acquired a 25% interest in the onshore Jambi Merang Block where development is underway. Talisman drilled three exploration and 23 development wells in 2009.

Talisman plans to spend $1.1 billion in Southeast Asia in 2010, with exploration spending accounting for $280 million, or 26% of the total.Talisman will commence the Makassar Strait drilling program in Indonesia with two wells in the Pasangkayu block and will acquire seismic in the Andaman III block.

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Boediono on resign rumor: Not that easy!

Rumors swirling around political elites that VP Boediono plans to resign due to the heat from Century case investigatio. But Boediono calmly responded, saying "I'm elected by people, to resign is not that easy."

Detik.com quoted Azyumardi, leader of Indonesian Moslem Intellectuals Association (ICMI), about their Q&A with the vice president. "We asked to the vice president about rumors out there that Mr Boediono wants to resign. He replied with question about the source of the rumor. But then the vice president said, "people elected me, so to resign would not be that easy."

Kompas.com quoted Azyumardi Azra with stronger words from Boediono, saying, "so, there is no intention to resign. The rumor is not true."

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Electric Stanley acquires 13 Ha for Rp65 Bn

PT Electric Stanley Indonesia, automotive parts supplier for Honda and Suzuki motorcycles, purchased a parcel of land in Millennium Industrial Estate from PT Bumi Citra Permai Tbk for Rp65 billion. What Bumi Citra will do with the proceeds?

Bumi Citra told IDX that the proceeds will be used to finance its industrial estate project in Bojonegara, Banten province where the company will build a coal terminal.

"Other than that, we're looking into investment partnership with Chinese investors to build a 125 MW power plant in Millennium industrial estate," Rudi Wijaya, operational director of Bumi Citra Permai said.

Bumi Citra, an industrial estate developer, has achieved 60% of its sales target this year (Rp100 billion). The company is also in talks with Taiwan investor for 15 hectares of land in the industrial estate, which will be used to build Nike shoes factory.

Bumi Citra's stock gained 5% this morning to reach Rp315. The stock has doubled since its IPO late last year.

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BLTA accomplished US$100 million placement

Shipping giant PT Berlian Laju Tanker (BLTA) Tbk has just accomplished the issuance of US$100 million 12% guaranteed convertible bonds due 2015 through offshore private placement on February 10.

BLTA struggles with huge debts in its book. The stock has lost 15% in the past three weeks and 35% from its peak last year (July). The stock reached its historic high of Rp2650 in January 2008. So, the current price is 77% below its all time high.

At the current price, BLTA has market cap of Rp3.7 trillion or about US$400 million. It is traded at 55% equity and 15.8% of its total asset. The company's total liabilities as of Sept 2009 was US$1.8 billion, including US$971 million of bank loans.

BLTA reported (English version to SGX) operating revenues of US$450 million in nine months of 2009, declined 17.6% from the same period in 2008. The company reported net loss of US$9.7 million against US$161 million net profit in Jan-Sep 2008. But the financial report dated November 13, 2009 pointed to net profit of US$6.05 million against US$188 million in Jan-Sep 2008.

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APBL launches Multi Bintang tender offer

Asia Pacific Breweries Ltd (APBL) kicks off the tender offer on 27.47% shares of PT Multi Bintang Indonesia (MLBI) Tbk at Rp161,741 per share.

APBL has just accomplished the acquisition of 68.5% shares of MLBI for Rp2.335 trillion or Rp161,741 per share on February 10, 2010. The tender offer will not include shares attached to depository receipts representing 4% of MLBI.

The tender offer period will be for a maximum period of 30 calendar days, which is tentatively scheduled to commence on March 5, 2010 and will end on April 1st, 2010.

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Escapes death sentence, Antasari gets 18 years jail

Court sentenced Antasari Azhar, former antigraft commission chief, 18 years prison on premeditated murder charges.
Antasari is accused of plotting the murder of Nasrudin Zulkarnaen, director of state-owned PT Putra Rajawali Banjaran, in March last year.
Nearly 1,000 officers guarded the court hearing. State prosecutors have demanded a death sentence for Antasari. They argued Antasari was convincingly proven of asking others and abetting the murder of Nasrudin on March 14, 2009. They insisted that the murder evolved around a sexual harassment committed by Antasari against of of Nasrudin's wifes, Rani Juliani.
Antasari was chairman of Corruption Eradication Commission (KPK) in December 2007-May 2009. Born in Pangkal Pinang, Bangka, March 18, 1953, Antasari graduated from Law School of Sriwijaya University.
Married to Ida Laksmiwati, Antasari is father of two daughters: Andita Diacnotora Antasariputri (27) and Ajeng Oktariefka Antasariputri(24).

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5 Years jail for Jerry Lo

Businessman Jerry Hermawan Lo is sentenced five years jail for his role in the assassination of Nasrudin, director of PT Putra Rajawali Banjaran.

Jerry, according to his personal website, is president commissioner of PT Liso Karya Mandiri and PT Kontek Aja. Born in Medan, North Sumatra, November 22, 1957, Jerry is charged for his role in hiring people to kill Nasrudin. Prosecutors demanded 15 years jail.

While he gets lighter sentence, Jerry plans to appeal to higher court. Other suspects in the case, Sigid Haryo (also a businessman) and Williardi Wizard (police officer), are sentenced 15 and 12 years jail respectively.

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Benakat Petroleum kicks off stocks trading

Energy company PT Benakat Petroleum Energy (BIPI) Tbk has kicked off trading of its stocks on Indonesia Stock Exchange (IDX) this morning. This is the third company listed on IDX this year. The stock is listed on IDX development board.

Benakat raised Rp1.61 trillion from the IPO of 11.5 billion shares at Rp140 per share. The stock jumped 40% in the first session of trading this morning to reach Rp196. At that price, Benakat has market cap of Rp5.89 trillion or about US$630 million.

This company reported net loss of Rp8.12 billion in 2008 and Rp32 billion in Jan-Aug 2009. Sales? Rp4.56 billion. Let's see whether the US$630 million cap is justified!

Former IDX CEO Erry Firmansyah joins Benakat as independent commissioner, while Wismoyo Arismunandar (former Army Chief of Staff) is the chairman. Arifin Wiguna is the CEO of this company.

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Bakrie stocks lost ground

Bakrie Group-related stocks lost ground this morning. Bumi Resources dropped another 3.33%, while Bakrieland an Energi Mega Persada slashed 6.4% and 5.33% respectively.

Bakrie & Brothers, Bakrie Telecom, Darma Henwa, and Bakrie Sumatra Plantations also declined 3.7%, 2.9%, 3.5%, and 2% respectively.

They sent IDX composite index back to negative territory (-0.4%) this morning while other markets in the region mainly regained grounds. Looks like pressures on coal stocks continued with INDY and ADRO declined 1% and 0.6% respectively, while their peers in the region opened higher, led by Shenhua's 3.9% gain and China Coal's 3.21%. Xstrata also closed higher by 1.51% in London yesterday, while US-listed coal stocks closed mixed.

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Hillgrove confirms gold prospect in West Papua

Hillgrove Resources Limited has confirmed the presence of significant copper and gold mineralization within two prospects in the Delta Target Area, in north western West Papua, Indonesia.

Hillgrove told ASX this morning that the field work for the Bird's Head Project confirmed that the large copper signature from soil sampling is due to porphyry style mineralization. The work also confirmed peak assays oc 5.7 g/t gold and 3.7% copper and the presence of a structural corridor which strikes at least 4Km and hosts medium to high grade gold/copper mineralization. Peak assays include 33.5 g/t gold and 8.6% copper.

Hillgrove has 80% economic interest in the project, which is located 130 Km from Sorong, Papua. The license covers 181,500 hectares within the administrative districts of Tamrau and Manokwari.

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Astra CPO output declines 0.6%

PT Astra Agro Lestari (AALI) Tbk reported CPO production of 78,520 tons in January 2010, declined slightly by 0.6% from January 2009, while PKO output dropped 4.7%.

AALI produced 1.08 million tons of CPO last year, increased 10.3% from 2008 on higher harvested FFBs (+9.1%) and the processed FFBs (+7.6%). But sales grew at lower percentage of 8.8%. The average selling price for AALI's CPO last year was Rp6242 per Kg, declined 12.5% from 2008 at Rp7134 per Kg.

AALI stock is currently traded at Rp23600 (increased 2.83% this morning), doubled from Rp11850 in March 2009. At the current price, Astra Agro has market capitalization of Rp37.146 trillion or about US$4 billion. The company is the 16th largest company on IDX by market capitalization. (Teguh Hidayat, yosefardi.com)

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Mandom profits at Rp129 billion

Consumer products player PT Mandom Indonesia (TCID) Tbk reported unaudited net profit of Rp125 billion last year on sales revenue of Rp1.388 trillion.

Mandom told stock market authorities this morning that the company seeks total sales of Rp1.54 trillion this year and about Rp2 trillion by 2013. Domestic market contributed to Rp1.037 trillion of sales revenue last year, while export at Rp315 billion.

Mandom reported stable profitability in the past few years. In 2008, the company booked net profit of Rp114.8 billion, increased slightly from Rp111 billion in 2007. Sales revenue also grew from Rp1.02 trillion in 2007 to Rp1.24 trillion in 2008. So, last year sales growth would be around 12%.

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Wall Street fails to cheer up IDX

Substantial recovery in Wall Street last night failed to cheer up investors on Indonesia Stock Exchange (IDX). The composite index of IDX returned to negative territory this morning as some profit taking continues on blue chip stocks.

BCA, the third largest company on IDX by market cap, declined 0.54% so far this morning, while PGN lost 0.7%. INCO and Bukit Asam also declined by 0.7% and 0.64% respectively. Telkom and Astra, the No.1 and No.2, unchanged on relatively thin trading volume. Coal stocks are still under pressure. Adaro and Indo Tambangraya Megah declined 1% and 0.34% respectively, while BUMI gained only by 1.09%. BUMI lost 4.1% yesterday. Pretty much in contrast to their peers in the region. BHP gained slightly by 0.33% in Sidney, while Shenhua and China Coal advanced by 0.8% and 2.92% respectively in Hong Kong.

Oil and gas stocks also moved mixed despite higher crude oil prices. Petrochina declined 0.7%, while CNOOC gained 2.54%. Elnusa lost 3.13% in Jakarta, while Medco gained 1.1%.

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Soros meets Boediono

George Soros, chairman of Soros Fund Management LLC and founder of The Open Society Institute, is scheduled to meet VP Boediono in Jakarta this morning. Boediono's spokesperson Yopie Hidayat confirmed the meeting to Tempointeraktif.com but disclosed no details about issues they would discuss.

Soros visited Indonesia several times in the past few years. "This is just a courtesy call. No specific agenda," Yopie said.

After the meeting, Soros indirectly defended government's decision to bailout Century. "Indonesia has walked out from difficult times successfully," Soros said. The money spent to bailout Century, he said, is nothing compared to the success to tame the financial crisis. Well, Boediono needs support like that. He has been widely blamed for the mess at Century. Prosperous Justice Party (PKS) politicians said Boediono is responsible for 80% of problems and violations related to Century.

Soros has been mentioned in various "deals" in Indonesia. The latest is about his "interest" to acquire Apexindo from Mitra Rajasa. In 2007, he met Aceh governor Irwandi Yusuf in New York, sparked speculation about his interest to invest in Aceh's mining sector. Last month, Robert Tantular, former controlling owner of the troubled Bank Century, told legislators that in 1999 he sold some of his shares in CIC Bank (one of three banks merged into Century, now Mutiara) to Quantum Fund controlled by Soros.

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IDX investigates possible insider trading at Matahari

Kompas.com quoted senior official at Indonesian stock market authority that IDX is investigating insider trading allegation related to acquisition of 90.76% shares in PT Matahari Department Store (LPPF) Tbk by Meadow Asia Co Ltd, a company to be controlled by CVC Capital Partners and Matahari Putra Prima (MPPA).

"We're investigating the trading of LPPF stocks since early this year on the insider trading possibility," Kompas.com quoted the officer this morning. Why? "Because the stock has skyrocketed way before the acquisition announcement in January 25," the officer explained.

FYI, LPPF advanced further by 3.45% this morning to Rp3,000. In November 10, 2009, LPPF was Rp110, but then skyrocketed to Rp1850 in Jan 15, one week before the acquisition announcement. LPPF was Rp1350 when MPPA announced the deal with CVC. Since then the stock has doubled to Rp3000 this morning.

With small money, someone has sent the stock sky high, because the average trading volume in the past three months is only 3,327 shares per day. Unbelievable! Asymmetry of information, right?

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WOM Finance profit tripled

Automotive financing firm PT Wahana Ottomitra Multiartha (WOM Finance) Tbk, a subsidiary of Bank International Indonesia (BII) reported net profit of Rp60.7 billion last year, tripled from Rp20.7 billion in 2008 despite lower

WOM Finance booked net revenues of Rp1.35 trillion, declined 7.3% from 2008, mainly because of lower sales of cars and motorcycles in Indonesia. But the company managed to cut its expenses by 11.3% to Rp1.26 trillion, thanks to lower financing costs. As a result, WOM Finance recorded profit before tax of Rp92.6 billion against Rp38 billion in 2008.

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Maybank subsidiary reported net loss

PT Bank International Indonesia (BNII) Tbk, a bank controlled by Malaysia's Maybank, reported consolidated net loss of Rp40.97 billion last year against net profit of Rp468.7 billion in the previous year.

BII actually reported higher net interest income of Rp3.1 trillion against Rp2.75 trillion in 2008. The bank's other operational income declined slightly to Rp1.678 trillion, but its other operational expense increased to Rp3.05 trillion. Provision of write off on productive/non-productive assets surged from Rp1.08 trillion to Rp1.73 trillion. As a result, BII reported operating loss of Rp12.35 billion against operating profit of Rp395 billion in 2008.

BII had total asset of Rp60.96 trillion as of December 2009, increased 7.2% from Dec 2008. The stock closed unchanged at Rp285 today. At that price, BII has market cap of Rp14.258 trillion or about US$1.52 billion.

Two years ago, Maybank paid US$1.24 billion for 55.6% shares of BII. Maybank then purchased 41% shares from the market at Rp510. In total, Maybank spent over US$2.3 billion in BII. Maybank currently controls 97.5% shares in BII.

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Coal stocks burnt down

Coal stocks are mainly in negative territory this morning. BUMI, the most traded coal stock on IDX, lost 5.21%, while Adaro declined 2.72%. Indika and Bukit Asam also lost ground, but ITMG recovered slightly by 0.17%.

Almost 150 million BUMI shares exchanged hands this morning. The stock dropped to Rp2275, the lowest since December 22, 2009. The stock has lost 35% its value from its peak last year and 73% below its all time high in June 2008. The stock was even bigger than Telekomunikasi Indonesia (TLKM). But now, BUMI is even smaller than ADRO in terms of market capitalization.

Looks like IDX-listed coal stocks experienced a delayed correction after long period of rally since February 2009. China Shenhua and China Coal regained grounds this hour by 1.3% and 1.1% respectively in Hong Kong. Straits Asia also gained 0.5% on SGX, while BHP advanced by 0.9% in Sidney. Xstrata, the world's largest thermal coal exporter, gained substantially by 3.35% yesterday in London.

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Charoen restructures chicken division

PT Charoen Pokphand Indonesia (CPIN) Tbk has acquired chicken processing facilities from its 99.96% subsidiary PT Primafood International for Rp33.35 billion. Primafood will focus on distribution of processed products.

CPIN told IDX this morning that the processing facilities acquired are located in Kutowinangun village, Salatiga Regency, Central Java. CPIN stock unchanged at Rp2050 this morning. At that price, CPIN has market cap of Rp6.72 trillion or about US$716 million. CPIN had total asset of Rp5.3 trillion as of Sept 2009 and net equity of Rp2.4 trillion.

CPIN reported sales revenue of Rp10.69 trillion in nine months of 2009, increased from Rp9.98 trillion in the same period of 2008. CPIN booked net profit of Rp1.09 trillion, surged 173% from Jan-Sep 2008.

Its sister company CP Prima (CPRO), meanwhile, has been in various disputes with bondholders.

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PP kicks off stock trading

State-owned construction firm PT Pembangunan Perumahan (PTPP) Tbk has kicked off the trading of its stocks on Indonesia Stock Exchange (IDX). The stock gained Rp10 to Rp570 in the opening session this morning. At that price, PTPP has market capitalization of US$293 million.

PTPP lists 4.842 billion issued shares, consisted of government shares of 2.469 billion, workers (1.333 billion), and public (1.038 billion). PTPP raised Rp581 billion from the IPO, of which 59% will be utilized for new investments and 41% for working capital.

The underwriters (Mandiri, Danareksa, and DBS Vickers) claimed an oversubscription of 1.7 x on total offer of Rp900 billion. Fidelity is reportedly one of the buyers of IPO.

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IDX opens lower by 1%

IDX composite index lost 25.72 points or 1.04% in its opening session this morning to touch 2449. Other markets opened mixed in the region with Hang Seng gained 0.7%, while Nikkei lost 0.44% and Australia's All Ordinaries declined 0.78%.

South Korea's KOSPI opened higher by 0.53%, while Shanghai's SSE Composite regained grounds by 0.73%. Last night, DJIA lost another 1.04%, while Footsie tumbled 3.06% in London.

Coal stocks opened substantially lower with Bumi Resources lost 2%, Adaro -1.63%, ITMG -1.21%, PTBA -1.3%, and INDY -1.11%. UNTR also declined 0.7%, while metals dropped (ANTM, INCO, and TINS lost over 1% respectively). Their peers also opened mainly in negative territory in the region to follow US-listed coal stocks which lost between 3-4% last night. Coal stocks dominated the trading on IDX yesterday with total trading value of Rp1.3 trillion in the regular market.

Banking stocks are also under pressure, with Mandiri dropped 2.33%, while BRI and BCA declined 1.41% and 0.55% respectively.

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Telkomsel customer base grew 25%

The largest cellular provider PT Telkomsel, controlled by PT Telkom and SingTel, reported 25% growth in customer base to 81.6 million last year. SingTel owns 35% shares in Telkomsel.

According to SingTel, Telkomsel controls 49% market share in Indonesian mobile market. In the third quarter of financial year 2009/2010, Telkomsel reported profit before tax of S$238 million, increased 43% from the same quarter of 2008/2009 (Oct-December 2008).

SingTel also controls 32.01% effective interest in Bharti Airtel, the largest GSM operator in India, with 118.9 million customers, surged 39% from 2008. SingTel also owns 47.34% stake in Globe Telecom in the Philippines which has 23.2 million customers, declined from 24.7 million in 2008. In Thailand, SingTel owns 21.35% shares in Advanced Info Service (AIS), which reported total customer base of 28.77 million last December, inched up from 27.47 million in Dec 2008.

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BCA Finance launches Rp500Bn bonds

PT BCA Finance kicks off the offering of Rp500 billion bonds with five maturities (15-48 months). The proceeds will be used for working capital.

BCA Finance also offers sub-ordinated bonds of Rp100 billion. The company had total asset of Rp1.82 trillion as of Sept 30, 2009. The financing company reported net profit of Rp264 billion in nine months of 2009 on sales revenue of Rp573.9 billion. The company's net profit grew substantially from Rp50 billion in 2004 to Rp192 billion in 2008.

BCA Finance is controlled by Bank Central Asia with 99.58% ownership. The company involves in motorcycle and cars financing.

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IDX opens lower, coal weighs

IDX composite index lost 1% in the first hour of trading this morning as coal stocks lost ground on correction in thermal coal spot prices and profit taking.

Adaro and Bumi Resources declined 1% respectively, while Indo Tambangraya dropped almost 2%. Indika and Bukit Asam also declined 1% respectively. Their peers opened higher mainly in the region, except Shenhua which declined 0.32% in Hong Kong. BHP, Rio Tinto, and Straits Asia regained grounds on ASX and SGX.

Metals also lost ground, led by Yunnan Tin which crashed 10.43%, while Timah declined 1.22%. Aneka Tambang and INCO also lost 1.5% and 0.72% respectively.

Oil and gas stocks are also under pressure. CNOOC and Petrochina lost 2.93% and 0.83% respectively in Hong Kong, while Elnusa declined 1.6% in Jakarta.

Banking stocks? Well, correction continues with Mandiri and BRI dropped over 2% respectively, while BCA and Danamon declined 1.1% and 2.8% respectively.

Profit taking on blue chip stocks hit the composite index and dropped almost 2% after 30 minutes of trading. TLKM, Astra International, Gudang Garam, United Tractors, Indofood, PGN were all in negative territory this morning.

Rupiah also opened lower at Rp9410/USD from 9335 last Friday.

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Tujuh Bukit KP converted to IUP

Intrepid Mines Limited told ASX this morning that Indonesian regulatory authorities (Banyuwangi Regent in East Java) have granted PT IMN, its partner in the Tujuh Bukit gold project, two Izin Usaha Pertambangan (IUPs), replacing the Kuasa Pertambangan previously held.

The first IUP, an exploration IUP (pursuant to new mining law) for an area of 6623 hectares, is valid until January 25, 2014. The other, an operating and production IUP for an area of 4998 hectares, covers the multi-million ounce Zones A, B, and C deposits, deeper sulphide extensions, and the new Katak discovery and is valid until January 25, 2030. The later IUP will enable Intrepid to complete a scoping study and progress to a feasibility study, should exploration results warrant it.

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Jatoil to start producing jatropha oil

Renewable energy company Jatoil Limited plans to produce its first commercial quantities of crude jatropha oil this year, a year ahead of previous expectations, after signing binding agreements to set up a new JV in Indonesia. The agreements provide for the acquisition of existing jatropha crops in Central Java.

The agreement was signed with PT Waterland International, a European-backed biofuel producer. The project involves Jatoil injecting up to US$600,000 for a 70% stake in a JV which covers 2,000 hectares of land in Central Java. Half of the land already holds jatropha trees, which are expected to bear their first commercial crop in 2010. The JV, named PT Jatoil Waterland, also plans to expand the jatropha plantation by a further 10,000 hectares, of which 1,000 hectares contains mature jatropha trees that are currently producing biofuel.

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Controversial writer named a suspect

George Aditjondro, researcher and controversial writer, whose last book Membongkar Gurita Cikeas rocked Indonesian politics (for a brief moment), has been named a suspect by Jakarta police. It's not because of the book's content. But because a report filed by Ramadhan Pohan, legislator from President SBY's Demokrat Party.

Ramadhan reported George to the police alleging George had slapped him in the face (literally) aftermath of a discussion about the controversial book in December 2009. In one chapter of the book, George pointed to Rp150 billion funds "invested' by Soenaryo Sampoerna (son of Boedi Sampoerna) in Jurnal Nasional, a newspaper widely known associated with President SBY and his Demokrat Party. Ramadhan was chief editor of the paper, while the First Lady's sister, according to George, is the key figure in the newspaper's operation.

George, reportedly losing control of his temper, suddenly raised his right hand and hit Ramadhan in the face using a copy of the book. Ramadhan then reported George for misconduct, which carries a maximum sentence of 32 months in jail or a Rp400,000 fine. George defended himself, saying that he wanted to stop Ramadhan's misconception of the book.

Well, a good reason to shift our attention from contents of the book.

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Thermal coal prices drops 6.8%

Thermal coal prices in Newcastle Port, Australia, for the week ended February 5th, 2010 dropped 6.8% to US$91.83 per ton. The commodity reached its peak two weeks ago at US$99.26 per ton.

Newcastle Port is the benchmark for Asian market. GlobalCoal's monthly NEWC Index has surged from US$71.74 per ton in October 2009 to US$95.2/ton last month. That was the highest level for almost 14 months. RB Index, which tracked thermal coal prices in Richard Bay port, South Africa, reached US$86.02 per ton last month, while DES ARA Index (Europe) at US$85.99 per ton.
Coal stocks closed mainly lower in the region on Friday. On IDX, Indo Tambangraya and Indika dropped 6% respectively, while Bumi Resources lost 4.85%, Bukit Asam -4.15%, and Adaro -3.63%. Trading on coal stocks was substantial. Total trading value of coal-related stocks was above Rp1.5 trillion.
They're not alone. China Coal and Shenhua crashed 6.53% and 4.71% respectively in Hong Kong, while Straits Asia conceded 6% on SGX and BHP -3.51% on ASX. Xstrata, the world's largest thermal coal exporter, lost 4.65% in London.

In the meantime, crude oil lost nearly 3% to settle at $71.19 on the New York Mercantile Exchange yesterday. Oil dropped as low as US$69.5 per barrel earlier Friday. As a result, crude has now dropped over 14% from its recent peak early last month (US$83/barrel).

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Bank Capital sold at 49% discount

Shareholder of Bank Capital offloaded 23.6% shares in the bank to unidentified buyer at 49% discount from the last quoted price.

About 1.07 billion shares were exchanged hands today at Rp46 per share or a total consideration of Rp49 billion. Bank Capital is a small bank controlled by Mr Danny Nugroho (21.7%), Indigo Investment Ltd (15.44%), Zen Gem Investments Ltd (14.34%), TFI (X) - TRA Ordinary (11.96%), First Financial Company Ltd (11.47%), Credit Suisse, Singapore (8.26%), and public (16.94%) before the transaction.

Bank Capital had total asset of Rp2.32 trillion as of Sept 30, 2009 with net equity of Rp501 billion. The bank reported net profit of Rp15.3 billion in nine months of 2009, increased slightly from Rp13.2 billion in the same period of 2008.

Why someone sold 23.6% shares at 41.8% of equity?

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IDX slammed, lost 2.86%

Indonesia Stock Exchange (IDX) joins other markets in the region, fell 74 points (2.86%) to 2518. Most blue chip stocks lost ground, led by commodities, banking, and telecommunications. Coal stocks lost the most.

Indo Tambangraya and Indika dropped 6% respectively, while Bumi Resources lost 4.85%, Bukit Asam -4.15%, and Adaro -3.63%. Trading on coal stocks was substantial. Total trading value of coal-related stocks was above Rp1.5 trillion. Metals also lost ground led by Timah (-5.75%), INCO (-4.14%), and ANTM (-2.44%).

They're not alone. China Coal and Shenhua crashed 6.53% and 4.71% respectively in Hong Kong, while Straits Asia conceded 6% on SGX and BHP -3.51% on ASX.

In the oil and gas sector, Medco slashed 6.2%, while Mitra International (MIRA) crashed 8.6%. PGAS and ENRG also lost 2.7% and 2.27%. Trading volume was significant with combined value over Rp300 billion. Petrochina and CNOOC fell substantially by 5.83% and 4% in Hong Kong, while BP opened lower by 1.34% in London.

Plantation stocks were also under pressure, but trading volume was relatively smaller than other commodities. Banking stocks were traded substantially with combined trading value over Rp500 billion. Danamon, BCA, and Mandiri lost over 4% respectively, while BRI, BTN, BRI, and BNI declined by 2-3%.

Foreign investors actively sold their portfolio with net sell over US$100 million today. Rupiah weakened accordingly. It closed lower at Rp9410 per USD from Rp9335 yesterday.

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When Gudang Garam is bigger than BUMI

As coal stocks burnt down on broad-market sentiment, second largest cigarette producer PT Gudang Garam (GGRM) Tbk takes over No. 11 spot from PT Bumi Resources (BUMI) Tbk. GGRM currently has market capitalization of Rp48.9 trillion, while BUMI at Rp47.54 trillion.

BUMI, like other coal stocks on IDX and elsewhere in the region, lost 4.85% this morning, while GGRM only declined by 1.17%. Further pressure on No.10 United Tractors (UNTR) might send GGRM there and closing the gap with the largest cigarette producer PT HM Sampoerna (HMSP) Tbk which currently has market cap of Rp58.7 trillion.

GGRM has skyrocketed 650% since October 2008, the highest gain in the top 20 companies on IDX by market cap.

As for BUMI, the company lost the crown as the biggest coal company by market cap to Adaro (Rp59.8 trillion). Still, BUMI is the busiest "casino" for coal sector and the whole market.

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Asian stocks follow Dow's fall

Asian stock markets opened substantially lower this morning to tracking the fall of Wall Street. Nikkei and KOSPI lost 2.7% and 3% respectively, while Australia's All Ordinaries dropped 2.87%. Straits Times also opened lower by 1%.

Energy stocks were hit the most with Peabody lost almost 7%. Exxon, Chevron, and ConocoPhillips declined over 2% respectively. They sent the Down Jones Industrial Average (DJIA) to almost below 10,000 with 2.61% drop. Nasdaq lost 3%.

Straits Times continued to drop this morning with -2.17%, while Shanghai opened substantially lower by 2%. Coal stocks in the region lost ground with Straits Asia, which controls two coal mines in Kalimantan, dropped 5%, while BHP and Rio Tinto slashed 3.8% and 5.6% respectively in Australia.

Hang Seng also opened lower by 2.7%, while IDX lost 2% in the first few minutes of trading. BUMI lost 4.85%, while Adaro declined 3.11%. Indo Tambangraya, Bukit Asam, and Indika also dropped by 3.43%, 3.3%, and 4%. Shenhua and China Coal lost 4.6% and 5.7% respectively in Hong Kong.

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PGN-Pertamina JV

Two state-owned companies, PT Perusahaan Gas Negara (PGAS) Tbk and PT Pertamina, have finally signed the JV agreement for LNG floating storage and regasification terminal (FRST) to be built in West Java.

The JV agreement was signed today by PGAS CEO Hendi Prio Santoso and Pertamina CEO Karen Agustiawan, witnessed by SOEs minister Mustafa Abubakar and energy minister Darwin Zahedy Saleh.

According to the agreement, Pertamina controls 60% shares in the JV, while PGAS controls the balance. Pertamina will have its people as CEO and Director for operations of the JV, plus one commissioner, while PGAS will be represented by finance and administration director plus one commissioner.

LNG for the facility will be sourced from East Kalimantan for a combined 11.75 million tons in 11 years. The gas itself will be supplied to state-owned power producer PT Perusahaan Listrik Negara (PLN). The JV will start construction of the FRST this year.

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Danpac doubles ownership at Millenium Pharmacon

PT Danpac Pharma has doubled its ownership at pharmaceutical company PT Millenium Pharmacon International to 20.07% through market operations.

Millenium Pharmacon (SDPC) told Capital Market Supervisory Agency (Bapepam) yesterday that Mr Johnny N. Wiraatmadja has sold 59.647 million shares of SDPC at undisclosed price to PT Danpac Pharma. SDPC gained 3.19% to Rp97 today.

As of Sept 2009, Mr Johnny controlled 8.19% SDPC shares while PT Danpac owned 11.07%. The biggest shareholder is Pharmaniaga International Corp Sdn Bhd with 55%. Other shareholders are PT Transpacific Securindo (11.07%), PT Indolife Pensiontama (5.87%), Minarsih Soedarpo Sastrosatomo (3.26%), and public (4.73%).

At Rp97, Millenium Pharmacon has market capitalization of Rp70 billion. The company had total asset of Rp385 billion in Sept 2009. Millenium Pharmacon reported net sales revenue of Rp789.4 billion in nine months of 2009, increased 23.3% from the same period in 2008.

The company reported net profit of Rp9.28 billion in Jan-Sep 2009, increased slightly from Rp7.9 billion in the same period of 2008. With annualized EPS of Rp17, the current price reflects PE multiple 5.7 on 2009 projected earnings, far below the market average.

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Jardine boosts ownership in Tunas Ridean

Jardine Cycle & Carriage Limited, a subsidiary of Jardine Matheson, has purchased 77.35 million shares of PT Tunas Ridean (TURI) Tbk, main dealer of BMW cars, at Rp1500/share.
Jardine Cycle & Carriage, controlling shareholder of Astra International (ASII), paid Rp116 billion or US$12.5 million for 4.5% shares of TURI. With the purchase, Jardine now controls 43.8% shares in TURI.
Today the stock closed at Rp1910, increased 0.53% from Wednesday. At that price, TURI has market capitalization of Rp3.28 trillion.

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Sampoerna, Lin Che Wei, & SBY-Boediono?

Boedi Sampoerna is one of 2009 newsmakers. His over US$200 million funds at Century has become the target of various investigations. What is the relationship between Sampoerna and people in power?

Media reports pointed to Lin Che Wei, former CEO of Danareksa (state-owned investment bank) as "consultant" for Boedi Sampoerna and his son Soenarjo (his name is mentioned by George Aditjondro in his controversial book Gurita Cikeas in relation to Jurnal Nasional newspaper). Interestingly, Lin Che Wei was also an active member in SBY-Boediono campaign team. He was quoted by various media reports during the election for his support to Boediono as VP.

Koran Jakarta in its Sunday, May 31, 2009 edition wrote an article titled Ideologi Hanya Sebuah Permainan. In the article, Che Wei explained why he joined SBY-Boediono team. "They're both well respected by market and public," he said. Unfortunately the newspaper didn't explain in detail when Che Wei joined SBY-Boediono team.

Lin Che Wei once told Vivanews.com that Century bailout has nothing to do with "lobbies" from Boedi Sampoerna. In September 15, 2009, the online publication quoted Che Wei saying "one thing is clear, before Century bailout, I, as advisor, Boedi or his son Sunaryo Sampoerna, never lobbied anybody. Sampoerna family never asked bailout on Century."

In a press release dated January 29, 2009, published by Vivanews.com, three months after the bailout, Che Wei, in his capacity as representative of Boedi Sampoerna, said initially Boedi had difficulties in releasing his funds at Century, especially when the bank was controlled by Robert Tantular.

Boedi, according to recent reports, has withdrawn Rp385 billion out of US$200 million funds in Century. The House' special committee to investigate Century plans to dig deeper into the withdrawals.

Without the bailout, Sampoerna would have lost his US$200 million. But prior to the bailout, Century divided US$42.8 million of the funds into 247 accounts worth Rp2 billion each in anticipation of possible closing down of the bank. The question, why they stopped at US$42.8 million and not the whole US$200 million?

Corruption Eradication Commission (KPK) grilled Boedi for almost nine hours yesterday. PDI-P legislators push DPR's special committee to investigate further the sub-plot of the Century case.

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Angered by Kerbau SiBuYa & SileBaY

Police stopped a buffalo named Kerbau Si leBaY in Kalimalang area, Jakarta. He was slated to "perform" at HI Circle with protesters from Pemuda Cinta Tanah Air (PECAT). The buffalo was taken from Bekasi, West Java because another buffalo, named SiBuYa, performed on January 28 rally has reportedly been "seized" by police. The "performance" has angered President SBY. "As if SBY is fat, lazy, and dumb like buffalo," SBY complained yesterday.

Coordinator of the rallies, Yosep Rizal (a freelance writer), told Kompas.com that he paid Rp200,000 rental fee for the buffalo. But now he's worried the police might seize the buffalo and he would be asked to pay Rp15 million. "I don't have that much," Yosep said.

SiBuYa, the buffalo performed on January 28 rally, is an overnight star after President SBY made comments about him. "Then there was a group of protesters leading a buffalo. They said 'SBY is lazy, big, and stupid, like a buffalo'. Was that really a demonstration?" SBY told the 33 governors in attendance. (The Jakarta Post, February 3rd, 2010).

Politicians, especially from SBY's Demokrat Party, are busy to condemn the buffalo's "sponsor".

Demokrat legislator Ruhut Sitompul, famous for his "rude statements & comments", considered people who brought the buffalo uncivilized (biadab). He got 46 comments from Kompas.com readers. About 35 readers against him.

Amir Syamsuddin, secretary general of Demokrat Party, who is also a lawyer like Ruhut, considered Kerbau SiBuYa as a defamation on State Symbol. "This is unethical," Amir said. Readers comment? Well, two supported Amir, five condemned him.

Senior politician from Golkar, known for his close relationship with President SBY (not SiBuYa), calmly said "to be ridiculed is one of the risks of being a leader." The late former president Abdurrahman Wahid might just respond "Gitu aja koq repot" (Why bother?). Probably SBY needs recipes from George W. Bush on how to deal with the "buffalos"!

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When DEWA is not GOD

PT Darma Henwa (DEWA) Tbk has just raised Rp624 billion from the issuance of new shares (6.24 billion) to refinance its debts. The stock once surged 28.2% in Dec 20, 2009 to Jan 6. But since then the stock retreated 18%. The mining contractor struggles to convince investors about its future.

DEWA is controlled by PT Bumi Resources (BUMI) Tbk through a controversial acquisition early last year, highly inflated price that time. BUMI paid Rp2.41 trillion for an indirect ownership of 44% in DEWA. Assuming that BUMI also participated in the recent rights issue, the company had to spend Rp275 billion to maintain its 44% ownership in DEWA. So, the combined investment in DEWA would go up to Rp2.685 trillion.

How much is the value of DEWA at the moment? Well, at the current stock price of Rp123, DEWA has market capitalization of Rp2.689 trillion. And, how much is 44% of Rp2.689 trillion? Rp1.18 trillion. So, potential loss of investment for BUMI as of today is at least Rp1.5 trillion.

How good is DEWA?

Well, the company's operating profit margin declined from 20.3% in 2007 to 11.8% in 2008 and 7.1% in the first half 2009. The company generated net profit of Rp2 billion only in six months of 2009. With "equity" of US$277 million and total asset of US$487 million, how much is the ROE, and ROA? Well, clearly too small to put it here.

BUMI shareholders? Fortunately, they are too busy with speculating on the stock, dubbed as the busiest casino in the country. 

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Boustead wins Tanjung Jati B wastewater contract

Boustead Salcon Water Solutions Pte Ltd, a subsidiary of Boustead Singapore Limited, has been awarded a contract from Toshiba Plant Systems and Services Corporation for installation and commissioning services related to an ongoing project for the Tanjung Jati B power plant in Central Java. 

Boustead Salcon Water Solutions is currently working on a 21,160 m3/day desalination plant, among other types of water and wastewater treatment plants at Tanjung Jati B for Toshiba Corporation. Where are all the Indonesian companies?

In December 2009, Boustead Salcon Pte Ltd acquired the remaining 5% shareholding interest in the company's 95% owned subsidiary in Indonesia, PT Citra Tirta Mataram. The principal activity of PT Citra Tirta is to engage in the operation of clean water supply. 

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Former minister named corruption suspect

Corruption Eradication Commission (KPK) has named Bachtiar Chamsyah, former minister for social affairs (2004-2009), as suspect in a corruption case. Bachtiar is the chairman of advisory board of United Development Party (PPP), a member of SBY-Boediono coalition.

KPK named Bachtiar a suspect for corruption allegation in the procurement of donation materials (cows) at the social affairs ministry. But Bachtiar, who was also cabinet member under Megawati administration, has yet to be detained. Bachtiar is a big supporter of SBY in PPP. He played crucial role in getting the party's support for SBY's candidacy last year when some leaders in the party prefer other candidates.

KPK has actually investigated Bachtiar's case since September 2007. The cows procurement project (beef was for distribution to the poor) was done without proper bidding.

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Alfamart expands to Vietnam

PT Sumber Alfaria Trijaya (AMRT) Tbk, owner of major retailer chain Alfamart, plans to expand its mini market network in Vietnam. Implementation of the plan is pending accomplishment of a feasibility study. AMRT operates over 3200 stores all over the archipelago, increased substantially from 2600 units in 2008.

AMRT told Indonesia Stock Exchange (IDX) that the company might enter into a joint venture for the Vietnam expansion.

AMRT started its commercial operations in 1989, focusing on trading of cigarette products. In 2002, the company runs its retail distribution of consumer products by operating mini-market networks, under the name of Alfamart. As of September 2009, number of mini-market under the network had reached 3200 units, including 2,396 units of direct ownership and 798 units under franchise agreement.

In nine months of 2009, Alfamart reported net sales of Rp7.59 trillion, increased 25% from the same period in 2008. The company booked net profit of Rp112 billion in the period. As of today, the company has market capitalization of Rp2.9 trillion or about US$310 million.

Who owns the network? PT Sigmantara Alfindo (54%), Argo Volantis Pte ltd (29.52%), PT Cakrawala Mulia Prima (6.48%), and public (10%). Northstar Pacific Group, a private equity company, owns substantial shareholding in this company.

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Total chases Papua oil & gas block

Total SA is in serious talks related to the acquisition of ConocoPhillips' participating interest in Warim oil and gas block, Papua. This is part of the company's expansion plans in Indonesia. State-owned oil and gas company Pertamina is also looking into Warim acquisition.

Warim PSC was signed in May 1987. This is an onshore exploration block in an area of Papua that covers 5795 square miles. ConocoPhillips owns 80% participating interest in the block, while Santos Pty Ltd holds the remaining balance. ConocoPhillips is the operator of the block. 

ConocoPhillips also owns 100% Amborip VI PSC, 60% in Kuma PSC, and 100% in Arafura Sea PSC. These blocks were awarded in the period of 2006-2008. Conoco's producing assets are Block B PSC, South Natuna Sea (40%), Corridor Block PSC (54%), and South Jambi "B" PSC (45%).

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Elnusa seeks Rp4.46 trillion revenue

Oil and gas services company PT Elnusa (ELSA) Tbk is working on geoscience service contracts worth US$47.9 million, most of which will be accomplished this year. How about the new contracts? Well, the company has only secured US$2.8 million contract so far.

Elnusa told IDX this morning that geoscience projects in Sumatra and Java will mainly be accomplished this year, including the 3D land seismic in South Sumatra (US$4.9 million) and 3D seismic in Jambi (US$5.4 million). The largest, land seismic project in Java, worth US$34.8 million will be accomplished this month.

Until third quarter 2009, Elnusa reported revenue of Rp2.49 trillion, increased 51%, from the same period in 2008, where geoscience unit contributed Rp960 billion or about 56% of total revenue in the upstream oil and gas services business. Elnusa reported EBITDA of Rp398.92 billion in Jan-Sep 2009, surged 92% from the same period of 2008.

ELSA is targeting Rp4.46 trillion of revenue this year. The company expects geoscience services would contribute Rp1.44 trillion. Elnusa currently has market capitalization of Rp2.37 trillion. Pertamina is controlling shareholder of this company, followed by Tri Daya Esta. Recapital Advisors has yet to close the acquisition of Tri Daya Esta's 37% shares in this company.

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Asian stocks mainly in RED

Asian stock markets opened the second month of trading mainly in negative territory. Australia's All Ordinaries lost 2.85% this morning, while Shanghai opened lower by 1.33% to tracking further correction in Wall Street last Friday. Hang Seng declined 0.87%, while Straits, Nike, and KOSPI at lower percentage. Jakarta's IDX opened lower by 0.81%.

Mining stocks hit All Ordinaries with BHP lost another 2.65%, while Rio Tinto conceded 3.36%. MacArthur crashed 11%, while Gloucester and Centennial dropped 5.52% and 4.5% respectively. Whitehaven Coal also lost 6.81% in Sidney. Straits Asia, which controls two coal mines in Kalimantan, opened lower by almost 1% on SGX, while China Coal and Shenhua declined by 2.7% and 1.5% respectively in Hong Kong.

Last Friday, US-listed coal stocks dropped substantially led by Arch Coal which crashed 14.14%, while Peabody Energy, the world's largest coal company in the private sector, lost 7%.

Oil and gas stocks also opened lower in the region with Woodside lost 5% in Australia, and Petrochina -2% in Hong Kong.

Plantation stocks opened lower in Singapore,  led by First Resources' -3.7%. Indofood Agri also declined 1%, while GoldenAgri Resources -0.96%. 

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