NU & The Civil Society

The 32th national congress of muslim largest organization Nahdlatul Ulama in Makassar ended on Sunday with appointment of new NU head KH Said Aquil Siradj for the period of 2010-2015. His tagline campaign ‘Kembali ke Pesantren’ or Return To Pesantren helped him to gain majority votes.

Abdus Sair, secretary of a youth organization GPNU, said the new NU board will face both external and internal challenges. Externally, NU has to encounter radicalism, Islam sectarian and terrorism issues. Internally, the new NU board will have to deal with some NU elites' move may take advantage of their position in NU for personal political interest. NU should return to its basic essence – i.e. focusing on religious and societal issues, in particular grassroot supporters of NU, who mostly live in rural areas and do not have economic access.

Some prominent figures of NU feared that the the new NU board might be ‘coopted’ by the State Palace, referring to the SBY government. The head of Pesantren (muslim boarding school) As’saidiyah Jamsaren Kediri, East Java, Anwar Iskandar, who is also forum for East Java and Central Java muslim boarding schools expressed his pessimism over NU’s future.

He was quoted by Tempo online that although the process to elect new NU head has been democratic, he views that the new head’s independency is “questionable”. He sees that Said Agil is too close to the government, which could cause resistance at the NU’s grass-root level.

Some observers say NU should position itself as a leader in civilian society movement. “As a strong civilian organization, NU should become the driver (in civilian society movement), not allowed itself to be taken advantage (by others),” Qasim Mathar, a professor at Islamic University Alauddin, Makassar, was quoted by Kompas as saying.

Given the public’s trust on the government and the parliament is deteriorating, due to corruption cases, -- such as the Gayus Tambunan tax case, traveller’s cheque case involving a number of Parliament members, and many others--, it is time for such big civilian organizations like NU to voice the interest and concerned of the public at large. (by Haryanto Suharman & Roffie Kurniawan)

READ MORE!!!

Gayus Tambunan & The Mafia

Mas Achmad Sentosa, a member of Task Force To Eradicate Court Mafia, established by the President, said on Saturday the team suspected that the the Gayus Tambunan case may not only implicate police and prosecutors, but could also Gayus’ lawyers and judges.

He said he came up with a conclusion after learning irregularities in the former tax officer case – starting from investigation until the issuance of a verdict, which let him free. “A clear indication is a move to unblock his (Gayus) bank account,” Achmad was quoted by Koran Tempo .

He said, since Gayus’ account was unblocked on Nov 22, 2009, up to Rp 28 billion has been withdrawn from Gayus account. The task force also detected the suspicious withdrawal of Rp 6.2 billion from Gayus account. Andi Kosasih, who previously claimed that the missing Rp24.5 billion in Gayus Account, was his money, failed to prove it. Andi has been been detained by the police. The task force learnt that Andi only got Rp 1.95 billion of the missing Rp 24.5 billion.

Late Sunday, Denny Indrayana, secretary of the task force, said at a press conference that the “independent team”, established by the police has discovered evidence of the presence of court and legal mafias in the Gayus Tambunan case. However, he declined to disclose.

Denny called on the tax office to strengthen internal control and work procedure system. The Gayus case shows the presence of tax mafias. It also indicates that the reformed in the tax office still long way to go.

The public is following the Gayus case with great enthusiasm. Will the police, the tax department, Attorney General act firmly in eradicating such mafia practices?

READ MORE!!!

Metals prevented IDX from falling deeper

Metal-related stocks prevented the composite index of IDX from falling deeper this morning as Aneka Tambang, INCO, and Timah gained 5.75%, 5%, and 3.3% respectively.
The composite index only lost 0.7% so far, as big caps like Astra, BCA, PGAS, and BRI lost ground on profit taking. Astra declined 2.32%, while Telkom and BCA lost 1.22% and 1.74% respectively. PGAS and BRI also declined 1.73% and 1.79% respectively. Unilever, United Tractors, and Bukit Asam are all in negative territory this morning, also on profit taking.

READ MORE!!!

Jupe to run for Pacitan Regent?

Pacitan is the hometown of President SBY. Politicians in the regency are competing to win the election for new regent. Interestingly, eight political parties have reportedly approached Julia Perez (some people said one of the hottest Indonesian actress) to enter the race. What?

Solo Pos, a newspaper published in Solo, quoted Julia saying among eight parties approached her are Hanura, Gerindra, and The National Awakening Party (PKB).

Yesterday, Detik.com reported that Julia, popular as Jupe, has yet to ask for blessing from SBY. Wow...Julia born in June 15, 1980. Divorced from Damian Perez, Julia is currently soccer player Cristian Gaston Castano's girlfriend.

Well, last month, United Development Party (PPP) and PKB, nominated Ratih Sanggarwati (former model turned legislator) as Ngawi Regent.

READ MORE!!!

Baltic Dry Index gained 14.3%

Baltic Dry Index (BDI), a leading indicator for shipment of commodities worldwide, and as a result an important sign of demand for commodities, gained 14.3% since February 24, 2010.

The index has bottomed out since February 2009. It once soared to above 4,000 in early June 2009, but then retreated to below 2,500 in August. The index soared again to above 4500 in November, but then fell back to 2500 late last month. But since then the index continued to grow to 3098 last Friday.

Sign of improvement in the commodities market? May be. Crude palm oil, for example, closed at RM2534/ton on Malaysia Derivatives Exchange last Friday, substantially lower from last month. But the current price is already 30% above the same month last year.

READ MORE!!!

Asiata divests 18% XL for Rp5 trillion

Axiata Group Berhad has accomplished the book building for placement of 18% shares in PT XL Axiata Tbk for Rp3300 per share. Axiata would bag Rp5 trillion or US$550 million from the divestment.

The placement, arranged by Goldman Sachs, CIMB Investment Bank Berhad, PT Mandiri Sekuritas, JP Morgan Securities Ltd, and Morgan Stanley Services Ltd, is oversubscribed 3-4 times. Axiata Berhad currently owns 86.5% shares in XL Axiata, wit Etisalat controls 13.3%, and public 0.2%.

The offering could also be upsized by an additional 153,144,000 XL Shares (representing 1.8% equity stake) under the option granted to Goldman Sachs (Singapore) Pte. on behalf of the initial purchasers for the Offering, in connection with price stabilization initiatives.

At Rp3300/share, XL Axiata is valued Rp28 trillion for 100% shares, right below Indosat (Rp31.24 trillion). XL has gained 71% so far this year, while Indosat gained 21.7%.

READ MORE!!!

Said Aqil Siradj, new NU Chairman

Said Aqil Siradj is elected new chairman of Nahdlatul Ualama, the largest Moslem organization in Indonesia, replacing Hasyim Muzadi. Said will lead NU until 2015.

There were 503 people who had a right to cast a ballot. Said secured 294 votes, while his main rival Slamet Effendy Yusuf got 201 votes. Earlier on Saturday, Sahal Mahfudz, was elected chairman of the advisory board, defeating Hasyim Muzadi. Sahal secured 272 votes, while Hasyim got 180.

The election of NU chairman was conducted in two phases where only candidates with minimum support of 99 could go to the final round. Said got 178 votes, Slamet 158, while Salahuddin Wahid (brother of the late former president Abdurrahman Wahid) only got 83 votes, followed by young NU intellectual Ulil Absar Abdalla (22 votes), Ahmad Bagja (36), Masdar Farid Mas'udi (6), Ali Machsan Moesa (8), Hasyim Muzadi (6), and Abdul Azis (7).

Who is Said?

Born in Cirebon, West Java in 1953, Said graduated with bachelor degree, master, and PhD from Saudi Arabia universities. A father of four, he has been member of NU's executive board since 1999. Said is lecturer and professor at some universities in East Java. In 1998-1999, Said was a member of National Commission for Human Rights (Komnas HAM).

READ MORE!!!

Lagoon 500: Luxury yacht, not for research...

Fishermen are considered among the poorest of the society. Yet, the ministry of fishery purchased a "yacht" worth US$1.5 million arguably for "coral reef research".

Minister of fishery Fadel Muhammad said he has dropped the program of his predecessor Freddy Numberi, one of President SBY's trusted aides. "Lagoon 500 is just too luxury for research. Its cabin is unbelievably gorgeous," Fadel said. "This is really good for a voyage, but not me as a minister," Fadel cynically argued against the decision of his predecessor.

Media reports pointed to US$1.5 million purchasing price for Lagoon 500, way above its market price of US$850,000. The yacht arrived in Nongsa Port, Batam Island, in late January from France. Why Freddy Numberi purchased that? Who sold the "yacht" to the ministry? Corruption? Well, the Supreme Audit Agency (BPK) is auditing the procurement. A friend said "this yacht is really good for research good looking girls who love coral reefs."

READ MORE!!!

Gayus et al

Gayus Hamonan Tambunan was "just" a "small guy" at Director General of Tax with US$1300/month salary but with US$3.04 million in his bank account after less than five years as "civil servant". How many people out there like Gayus, not only at Tax Office, but Finance Ministry, other ministries, National Police, Attorney General's Office and State institutions?

According to Tax Office, Gayus handled 51 tax cases since 2007, of which Tax Office loose the court battle over 40 cases. Well, it's a must for Tax Office to review the cases handled by Gayus, who knows the State could recover more from the big taxpayers.

Gayus salary of US$1300 per month is already way above the national average. Still, it's hard to imagine someone with that salary could buy a luxury house in Gading Park View, apartment in Cempaka Mas, and luxury cars.

Combined, Gayus might be "wealthier" than Hadi Poernomo, former director general of tax, who claimed he has Rp38.8 billion of assets.

A friend of mine had just purchased a big house in Jakarta from a tax officer with total value over US$250,000. "He was in a hurry to sell the house. I was lucky to pay half of the market price," the friend proudly informed about his "bargain house".

Other Gayuses worked smarter, let's say through "legal framework", such as amendment of tax laws or incentives (lower tax rate for companies with over 40% shares controlled by public)...Lots of companies enjoyed lower tax payment of hundreds of billion rupiah due to this tax incentive. Guess how many politicians enjoyed lot bigger than Gayus from helping companies get lower tax rate, saving hundreds of billion rupiah with few billion of rupiahs "investment" in politicians and their flashy campaigns?

READ MORE!!!

Tax Office Fires Rp25 Bln Taxman Gayus Tambunan

Directorate General for Taxation at the Finance Ministry on Friday finally decided to sack tax officer Gayus Tambunan, who has been accused for corrupting tax payers money worth Rp 25 billion (US$2.6 million).

Director for internal compliance and human resource transformation at the tax office, Bambang Basuki, told reporters that Gayus was sacked for breaching civil servant code of ethic and disciplinary. He said the dismissal letter is expected to be signed by the director general for taxation Muhammad Tjiptardjo next week.

Gayus case hit headlines over the past few weeks after former national police detective chief Susno Duadji disclosed to the public that some senior police officers have been suspected to have taken bribe of up to Rp 24.5 billion in return for dropping Gayus case. Susno discovered later that Gayus bank account, which was frozen earlier, has been unblocked. He suspected the money has been taken by some senior police officers.

Susno who was a public enemy number one six months ago for describing the ‘war’ between KPK (corruption eradication committee) and the police over Bank Century fiasco just like “gecko versus crocodile” has earned public support. However, his move has angered the police. Susno has been questioned by the police and could face libel.

Meanwhile, Gayus who “officially” earned Rp 12.5 million ($1,315) a month, has hit headlines. Gayus was reported to have a uxury house in Kelapa Gading, North Jakarta, worth over a billion rupiah and an apartment. Gayus was reported to have fled Singapore. Why Singapore?

Gayus case has drawn public interest, with some launching a “don’t pay tax campaign" through facebook and other social network, with a clear message to the tax office – “we won’t pay tax until you clean your house. We will pay tax only if you convince us that our money will be used to build schools, roads, etc, not to enrich those crooks.”

Detik.com reported that Gayus often represented tax office in a dispute with large tax payers. And, he often won.

Is Gayus case an isolated phenomenon? Is he alone?

Gayus bosses – both Tjiptardjo and Finance Minister Sri Mulyani Indrawati – were certainly not happy with the case. The case emerges at the time the tax office intensifies campaign, encouraging the public to pay tax. The finance minister has also intensified reformed in her office, including the tax office. The Gayus case tells part of the results.

Hopefully, the case would trigger further reform within the ministry. (Roffie Kurniawan)

READ MORE!!!

Ten Billion Dollar Club

Seven companies listed on Indonesia Stock Exchange (IDX) currently have market capitalization over US$10 billion.

They are Astra International (US$19 billion), Telkom Indonesia (US$18.3 billion), Bank Central Asia (US$15.5 billion), Bank Mandiri (US$12.25 billion), Perusahaan Gas Negara (US$11.34 billion), Bank Rakyat Indonesia (US$11.16 billion), and Unilever Indonesia (US$10.4 billion).

Combined, these Seven Giants have market capitalization of US$97.95 billion.

Looks like the 10 Billion Dollar Club will not get new member soon. Why? Because, the eight largest company, United Tractors, only has market cap of US$6.9 billion. Unless this company will grow at least another 45% this year.

READ MORE!!!

IDX almost reached record high

The composite index of Indonesia Stock Exchange (IDX) advanced further by 1.1% to 2805 this morning, the highest level in the past two years, but yet to cross the record high in January 2008 at 2830.

IDX gained 93% last year on rupiah basis, but over 100% on USD. In the first three months of 2010, IDX gained another 10.7%. Astra International (ASII) gained another 3.95% this morning to extend its lead over Telkom (TLKM) by Rp10.5 trillion. Astra currently has market capitalization of Rp175.9 trillion or about US$19.3 billion.

READ MORE!!!

Cooper awarded Indonesian oil fields

Cooper Energy Ltd (Australia) has been awarded a contract by state oil and gas company PT Pertamina to operate and develop the Sukananti, Tangai, and Bunian oil fields (Sukananti KSO) in South Sumatra.
The Sukananti KSO is located in South Sumatra, Indonesia, on trend with the Limau and Tanjung oil fields. The Bunian oil field is currently producing at 60 barrels of oil per day through a single well. The Tengai oil field was producing through four wells and the Sukananti oil field was producing through a single well but these are now shut-in, awaiting wellbore remediation and workover.
The three oil fields in the Sukananti KSO have produced 1.08 million barrels of oil to date. Cooper is looking forward to more fully developing the oil fields and recovering an additional 1 million barrels (P50) of oil.
Cooper's program consits of a signature bonus of US$861,888m 24 Km2 of 3D seismic, a new development well, 3 well workovers and infrastructure updates with total cost over three years of around US$6.8 million. Cooper's JV partner (10% interest) in the project is PT Mega Adhyaksa Pratama.

READ MORE!!!

First Media turned positive

PT First Media (KBLV) Tbk, controlled by Lippo Group, posted net profit of Rp32.8 billion last year against net loss of Rp101.7 billion in 2008 on stronger sales revenue and improved operating margins.

First Media, operator of cable TV Kabelvision, reported net sales revenue of Rp722.46 billion last year, surged 36.2% from 2008 while its cost of services increased slightly by 12.7% to Rp293 billion. As a result, First Media posted gross profit of Rp429.36 billion, soared 60% from 2008. But the company reported substantial increase of 31.4% in operating expenses to Rp364.7 billion. First Media then booked operating profit of Rp64.7 billion against loss of Rp8.7 billion in 2008.

First Media reported strong growth of revenue from subscription fees for broadband Internet to Rp331.6 billion, surged 73% from 2008, while subscription fees for cable TV reached Rp255 billion last year, grew by 15.8% from 2008. Data communications revenue also jumped 37.5% last year.

READ MORE!!!

Nokian Tire, Hankook Consider Buying Multistrada Stakes

European tire producer Nokian Tire Plc and Hankook Tire of South Korea are interested to buy majority shares of domestic tire PT Multistrada Arah Sarana Tbk.

“Negotiation has been started recently, however the controlling shareholder of Multistrada has asked Nokian and Hankook to raise their offered price,” an unnamed investment bank executive quoted by Bisnis Indonesia as saying.

Multistrada’s among well-known tire brands are Corsa and Strada. Multistrada is planning to boost its production capacity, utilsing the loan worth US$200 million that was arranged by CIMB Niaga and HSBC. Rating agency Pefindo projects Multistrada’s sales to rise to Rp 1.69 trillion in 2009, up from Rp 1.33 trillion in previous year, with net profit is also projected to surge to Rp 165 billion from tiny Rp2.97 billion in previous year

Hankook is the seventh largest tire producer in the world that produces tire for passenger car, light trucks, trucks and buses. Around 70% of its products are sold to around 180 countries. In 2009, Nokian posted net profit of 798.5 million euro. (Roffie Kurniawan)

READ MORE!!!

Readers: Ruhut + Susno need psychologist help

In his opposition to Susno Duaji, former detectives chief, politician from President SBY's Demokrat Party, Ruhut Sitompul, suggested Susno to consult to psychologist for "his strange behavior." Readers said "Ruhut also needs psychologist help."

Ruhut said Susno's behavior is intolerable because he "challenged his boss and colleagues."He needs to consult psychologist." But Detik.com readers mainly agreed that Ruhut needs not only psychologist help but treatment in Psychiatric Hospital a.k.a Rumah Sakit Jiwa (RSJ)....for his behavior and comments...

READ MORE!!!

Brokers all over

US have mortgage brokers all over on the sub-prime crisis, we have stock brokers behind the repo chaos, and now we're busy talking case brokers to stop corruption investigations.

It's all about MONEY...My friend once had to stay in Jakarta police custody for one night due to a police report by his business partner. Police officers asked for Rp60 million to get him out that night. He rejected to pay because he had no money left in his account, embezzled by the business partner. The junior police officer tried to negotiate. He reduced the tariff to Rp50 million. My friend said "Ok, let me ask my friend, hopefully he could help." My friend called a former KPK officer and tell his story. "I'm a victim in this case. My business partner squeezed me, paid a police officer to put me in jail," my friend complained.

"So, you got it?" the police asked? My friend said, "No. I guess I will stay here tonight." The police quickly reminded, "well, this is Friday, we could extend the detention until Monday."

My friend was lucky that when he woke up the next morning, the police officer said "you may go now." That easy? Well, because the former KPK guy called and the police boss was terrified. But how many people could enjoy such a luxury of terrifying police officers from asking money from the victims or criminals? Most of them ended up paying lots of money to have their cases dropped or their reports processed...

So, when Susno Duadji, former police detectives chief, disclosed the existence of brokers to stop a tax crime investigation and embezzled Rp24 billion, imagine how much they made from conglomerates like Sjamsul Nursalim or Marimutu Sinivasan? And in most business disputes, case brokers (at police or attorney general's office) could get from both sides of the isles, pretty much similar to stockbrokers who will get from sellers and buyers of the stocks...

They're not alone. Some politicians could openly offer "services" to executives of state-owned companies or major companies they summoned to the House of Representatives (DPR) for "public hearing". "If you need catering services, my friend could provide," or "Hey, let me know if you need my pressure to have your brokerage firm appointed as underwriter of the SOEs IPO or privatization."...Without brokers, it's difficult to imagine how blue-chip companies like Telkom put substantial funds in a bank like Century, right? Without brokers from the power structure, it's hard to imagine how someone won a contract to supply this and that to the SOEs...Or have they changed?

READ MORE!!!

Ulema rejects gay conference in Surabaya

Majelis Ulama Indonesia (MUI) East Java chapter rejects an Asia conference of gay, lesbian, and bisexual communities scheduled this weekend in Mercure Hotel, Surabaya.

Tempointeraktif.com quoted Abdus Shomad Buchori, head of MUI East Java chapter, saying the gay conference would trigger "extraordinary problem". At least 200 participants from Asian countries are scheduled to participate in the conference.

Muhammadiyah East Java also rejects the conference. But Dede Oetomo, gay activist and sociologist from Airlangga University, said such rejection is normal. "No religion accepts us, we will go to hell," Dede said. But he would regret if government doesn't allow the conference. "That would only show how bad our democracy," he said.

READ MORE!!!

Hadi Purnomo & The Grants

Hadi Purnomo, head of the Supreme Audit Agency (BPK) and former director general of tax at ministry of finance, claimed Rp36 billion out of his Rp38.8 billion asset as grant from family and relatives. Really?

Well, the Corruption Eradication Commission (KPK) has deployed a "special team" to examine Hadi's report. The grants list include the followings: (1) Land and building in Los Angeles, (3) Land of 2,900 m2 in West Jakarta, (3) Land of 1000 m2 in West Jakarta, (4) Land and building of 11,150 m2 in Bogor, West Java, etc. You can read the full list here. Who gave what?

Hadi Purnomo is richer than President SBY, at least according to the President's report to KPK. SBY has total asset of Rp7.6 billion plus US$269,730. The President got a Range Rover 2002 in 2006 (Rp500 million). Really? How much is the value of his private residence in Cikeas? Nobody knows...

READ MORE!!!

IDX lost 1.48%

The composite index of IDX closed lower by 1.48% today to 2702. Bumi Resources (BUMI) is the top loser with 9.71% drop and trading value of Rp512 billion. Delta Dunia Makmur (DOID) also lost 9.42% on heavy trading.
Bakrie-related stocks mainly under pressure with Energi Mega declined almost 5%, Bakrieland -5.9%, and Bakrie Sumatra -1.96%. Bakrie & Brothers (BNBR) conceded 3.8%.
Bhakti-related stocks were also lost substantially with Media Nusantara Citra (MNCN) dropped 9%, while Bimantara slashed 6.41%. Astra prevented IDX from falling deeper with 0.25% gain. Astra closed the day as King of IDX with market capitalization of Rp162.73 trillion, slightly higher than TLKM (Rp162.3 trillion) which lost 2.42%.

READ MORE!!!

BUMI CFO named a suspect

Directorate General of Tax at Finance Ministry has reportedly named Eddie J. Sobari, finance director at PT Bumi Resources (BUMI) Tbk as a suspect in tax crime investigation. BUMI lost almost 6% this morning on IDX.
Tax Office had earlier named Robert Bismarka, director at PT Kaltim Prima Coal (KPC), a subsidiary of BUMI, as suspect in similar case.

READ MORE!!!

Former PLN CEO named a suspect

Eddie Widiono, former CEO of state-owned electricity company PT Perusahaan Listrik Negara (PLN), has been named a corruption suspect by the Corruption Eradication Commission (KPK).

Detik.com got a confirmation from KPK deputy chairman M. Jasin that Widiono has been named a suspect in an investigation of corruption at PLN's headquarter. KPK has yet to disclose the detail of the allegation. KPK had previously named Hariadi Sardono, PLN director for outside Java and Bali operations, a corruption suspect in a different case with loss to the State of Rp80 billion.

READ MORE!!!

Newmont and Sumitomo Complete 2009 7% Share Sale of PTNNT for $247 Million

Newmont Mining Corporation announced that its subsidiary, Newmont Indonesia Limited, together with Nusa Tenggara Mining Corporation BV (NTMC), an affiliate of Sumitomo Corporation, completed the sale of 7% of PT Newmont Nusa Tenggara (PTNNT) corresponding to the PTNNT 2009 divestiture obligations. The 7% interest was sold to PT Multi Daerah Bersaing (PTMDB), a consortium comprised of regional and local governments near the Batu Hijau copper and gold mine in Indonesia, and PT Multicapital, a private company.

Upon completion of this sale, Newmont received approximately $129 million in cash, reflecting its 56.25% portion of the $247 million sale price reduced by a $17 million dividend adjustment payable to PTMDB under the sale agreement. The 2009 Share Transfer will result in a pre-tax gain of approximately $50 million that will be reflected as an increase in equity on the Company's consolidated balance sheet.

In conjunction with the closing of the 2009 Share Transfer, the mine operating agreement among Newmont, NTMC, and PTMDB came into effect. Under this agreement, Newmont and Sumitomo continue to retain -- so long as their combined shareholding is greater than PTMDB's interest in PTNNT -- the right to apply Newmont's operational, technical, financial, and related standards and practices to the operation and management of Batu Hijau. This includes standards for safety, environmental stewardship, and social responsibility.

Pursuant to the PTNNT Contract of Work, an additional 7% of PTNNT's shares will be offered for sale by Newmont and NTMC by March 31, 2010, after which the divestiture obligations contained in the Contract of Work will be complete.

With the close of the 2009 Share Transfer, Newmont's economic ownership in Batu Hijau has been reduced from 52.44% to 48.50%, which includes the 17% effective economic interest obtained as collateral for the previously reported loan transaction with PT Pukuafu Indah as well as Newmont's direct holding of 31.5%. The resulting net effect on Newmont's 2010 operating outlook is a decrease in production of approximately 25,000 equity ounces of gold and 20 million equity pounds of copper.

READ MORE!!!

Semen Baturaja Rating Affirmed by Fitch at 'A-(idn)'

Fitch Ratings said on Thursday that it has affirmed the national long-term rating of Indonesia’s seventh largest cement maker PT Semen Baturaja at ‘A-(idn)’. It also affirmed compnay’s rupiah bonds, with outstanding Rp 50 billion due in June 2010, at the same rating.

The company's outlook remains "stable", it said.

Baturaja, established in 1974 and owned by the government, has an annual installed capacity of 1.2 million metric tons. The company currently operated three plants located in Baturaja, Palembang and Panjang in South Sumatra province.

The rating agency said the company’s ratings “reflects its continued leading market position in its primary market of South Sumatra (i.e. Palembang and Lampung), with a market share of around 58% in 2009.”

“The ratings also factor in Baturaja's entrenched position and strong brand image in this region, as reflected by its ability to increase its average selling price consistently in 2009 without significantly impacting its sales volume,” it said.

The policy allows Baturaja to increase its EBITDA (earnings before interest, taxes, depreciation, and amortization) to Rp 283 billion in 2009 from Rp 247 billion in 2008, resulting in an improved debt/EBITDA ratio of 0.3 times at end-December 2009 from 0.8 times at end-December 2008.

It added Baturaja’s liquidity remains healthy with a strengthening net cash position of Rp121.7bn at end-December 2009 from Rp 68.4 billion at end-December 2008, following further debt repayments during the year.

The agency noted that Baturaja's market share has slightly declined from 61% from 2008 due to heightened competition following the entry of much larger cement manufacturers into the area during second of last year.

However, Fitch expects the slight decline of market share to be temporary as it believes that competitive pressure would ease to some extent in 2010 as industry leaders would concentrate in fulfilling the growing demand in their primary markets in Java, especially since there are no major increases in capacity planned until 2012. (Roffie Kurniawan)

READ MORE!!!

Garuda’s Net Profit Surges 50.8% in 2009

National flag carrier PT Garuda Indonesia (Persero) posted net profit rise of 50.8% in 2009 to Rp 1.01 trillion compared to Rp 669 billion in previous year, partly due operational efficiency, the company’s president Garuda Emirsyah Satar said.

The surge in net profit came in despite a 6.7% revenue decline to Rp 16.7 trillion, against Rp 17.8 trillion in previous year. Emirsyah was quoted by Kontan online on Thursday as saying that the decline in revenues was attributable to falling ticket price in line with at 40-percent drop of the aviation fuel (avtur) in international market. Fuel contributed between 30% to 40% to the airline’s operational costs.

"Although the number of passengers edged up by 2% to 10.3 million from 10.1 million, with average load factor of 74%, revenues did not increase due to ticket price decline,” he said.

He added the company plans to allocate US$100 million in capital expenditure this year. Portion of this will be allocated to purchase 23 Boeing 737-800NG and one unit of Airbus 330-200. The purchase will be financed from internal cash-flow. (Roffie Kurniawan)

READ MORE!!!

Nestle also drops Sinar Mas Group

Nestle SA has followed Unilever in dropping Sinar Mas Group from the list of palm oil supplier after Greenpeace called on the world's largest food producer to cut ties with the company controlled by Eka Tjipta Widjaja family, Bloomberg reported an hour ago.

According to the report, Nestle replaced Sinar Mas with an unidentified supplier. Earlier on Wednesday, Greenpeace published a report saying Sinar Mas has unlawfully destroyed rain forests to set up palm oil plantations, Bloomberg reported.

Who will be the next to drop Sinar Mas?

Sinar Mas Group's plantation units are listed in both Indonesia and Singapore stock exchanges. PT SMART Tbk is listed on IDX, while GoldenAgri Resources Ltd is listed on SGX. SMART declined 2.36% on IDX with thin trading, while GoldenAgri closed unchanged with substantial trading on SGX. GoldenAgri stock has surged over 100% in the past nine months.

READ MORE!!!

BRI returned to No. 6

PT Bank Rakyat Indonesia (BBRI) Tbk returned to No. 6, taking over the position from Unilever Indonesia (UNVR), with 3.36% gain this morning.

BRI currently has market capitalization of Rp94.02 trillion, bigger than UNVR (Rp93.09 trillion). Telkom (TLKM) is still the largest with Rp169.3 trillion, but only inches away from Astra (Rp162.1 trillion). BCA is the top gainer among the blue chips with almost 10% gain this morning to make it a Rp140.53 trillion company and maintained its position as the third largest company on IDX. Bank Mandiri is fourth with Rp100.6 trillion, but only inches away from PGN (Rp100.03 trillion).

Indo Tambangraya (ITMG) jumps to No. 16, bigger than INCO and AALI, due to 5.42% gain this morning. Bumi Resources? No. 13 with Rp49 trillion, right below Gudang Garam and Indocement.

READ MORE!!!

Blue chips lifted IDX

Composite index of IDX surged 2.12% to 2726 in the first session due to substantial rebound of blue chip stocks. BCA gained as much as 7.7%, while Astra advanced 3.62% and Telkom increased 1.2%.

BRI also gained 3.4%, while PGAS +3.07%, Unilever +2.08%, and Bumi Resources +1%. INCO, Indofood, and Indosat gained 1.9%, 1.3%, and 2.5% respectively. Bank Mandiri advanced further by 2.08%, while Danamon +2.97%. The Fed's decision to maintain interest rate is responded positively by Asian markets this morning. All of them are in green zone with both Hang Seng and KOSPI gained 1.28%, while others less than 1%.

READ MORE!!!

Garuda auctions off 4 Boeing 737-400

Flag carrier Garuda Indonesia re-auctions four B737-400 aircrafts. The re-auction will be conducted separately for each of the aircraft on the same day through Kantor Pelayanan Kekayaan Negara dan Lelang (KPKNL) Jakarta V.

Kompas.com reported last month that Garuda would convert up to 3 B737-400 into cargo airplanes (freighter). Meanwhile the four B737-400 put on auction are registered under PK-GWK, PK-GWM, PK-GWO, and PK-GWP.

Garuda currently owns 67 aircrafts, consited of B737-300 (15 units), B737-400 (19 units), and B737-500 (5 units). Garuda plans to replace old Boeings with 90 units of B737-800 Next Generation (NG) until 2014.

READ MORE!!!

Energi Mega Reports Gas Flow Incident

Oil and gas company PT Energi Mega Persada Tbk (ENRG) said in a filing to the Indonesian Stock Exchange that there was a gas flow incident occurred at the company’s oil and gas field Bentu PSC, Segat-2, in Riau, Sumatra.

The incident occurred during well work-over activities, which has led to an evacuation of the non-essential site workers.

Nevertheless, there were no casualties or property damage during the incident. It added the incident as no impact on the Bentu and Korinci Baru PSCs. The original Segat-2 discovery well was drilled back in 1995.

Hopefully there will be no more mudflow like the one in Sidoarjo (Lapindo). Energi Mega was the controlling owner of Lapindo, which drilled the oil and gas field in Sidoarjo. Partners in Lapindo were Medco and Santos. (Roffie Kurniawan)

READ MORE!!!

Coal stocks lost steam

Coal-related stocks lost steam this morning on weakened thermal coal prices. Shenhua and China Coal dropped 4.2% and 3.53% respectively in Hong Kong, while Bumi Resources and Adaro declined 1.98% and 0.53% on IDX this morning.
Bukit Asam, Indo Tambangraya, and Indika also declined, while BHP and Rio Tinto lost 0.42% and 0.3% respectively in Sidney. Delta Dunia Makmur (DOID) declined further by 1.42% to Rp1390. The stock has lost 36% from its peak last year. But trading volume was relatively small.

READ MORE!!!

Mobile-8 stocks trading suspended

IDX suspended the trading of Mobile-8 Telecom (FREN) stocks in the first session of trading this morning due to the delay in payment of bonds issued in 2007.

IDX suspended the trading based on Mobile-8 letter dated March 12 stating the company has not been able to provide the 12th interest payment on the bonds issued in 2007. Mobile-8 has also yet to pay fines on the overdue interest payments and including fines payable to KSEI as payment agent.

Last Friday, Mobile-8 stocks were traded heavily. The stock inched up Rp1 to Rp51 with 709 million shares exchanged hands.

READ MORE!!!

Mobile-8 stocks trading suspended

READ MORE!!!

VWM discovered substantial molybdenum in Sulawesi

Victory West Moly Ltd has completed a detailed, three-dimensional, double-offset dipole-dipole Induced Polarization (IP) geophysical survey over Anomay B, located within the PT Inti Cemerlang concession, part of five concessions forming the company's Malala Molybdenum project in Sulawesi.

The IP survey was conducted by Khumsup Limited, an internationally recognized geophysical contracting company. Perth-based Southern Geoscience Consultants has undertaken data processing, modeling, and interpretation.

Preliminary interpretation indicates the IP survey has defined the structurally-controlled contact zone between the Tinombo metasediments and the relatively less chargeable Malala porphyry.

READ MORE!!!

Innotech to launch MOKO.mobi in Indonesia

MOKO.mobi Limited has signed an agreement with PT Innotech Wireless Solutions, a leading mobile specialist service provider to all the major Indonesian mobile carriers.

Innotech has been appointed as the exclusive agent for MOKO.mobi in Indonesia and will be responsible for coordinating the launch of the service on the carrier's portals with zero rated-data, premium MMS, and WAP billing.

Indonesia is a large mobile market with over 180 million mobile customers.

MOKO.mobi is a global platform that enables people to chat and share anywhere. People from around the world use MOKO.mobi on their mobile phone or PC to meet new people, chat in real-time, upload unlimited photos and video, share links, and sample & recommend music from artists.

READ MORE!!!

PP posted 35% net profit growth

State-owned construction and investment company PT Pembangunan Perumahan (PTPP) Tbk posted net profit of Rp163.26 billion last year, increased 34.7% from Rp121.6 billion in 2008 on improved margins.
PTPP then reported EPS of Rp43. Last Friday, the stock closed at Rp680. At EPS Rp43, PTPP is traded with PE multiple 15.8 on 2009 earnings.
PTPP reported net sales revenue of Rp4.2 trillion, increased slightly by 6.9% from 2008, but operating profit surged 37.3% to Rp367.9 billion. The company projected a net profit of Rp367 billion this year or an EPS of Rp96.3 The current price then reflected PE multiple 7.

READ MORE!!!

Bloomberg & Anti-Smoking Edict

PP Muhammadiyah, the second largest Moslem organization in Indonesia, dismissed allegation that Bloomberg Initiative's Rp3.6 billion donation has contributed to the issuance of an anti-smoking edict, which triggered a controversy and protest from tobacco farmers. Why Muhammadiyah denied while the project's description is clear: it seeks a fatwa!

"What's wrong with Bloomberg's donation as long as it is for the good of people," Sidibyo Markus, leader of Muhammadiyah defended to Detik.com this morning.

Sudibyo dismissed the allegation of relationship between the edict and the Bloomberg funds. But according to Bloomberg Initiative's website (www.tobaccocontrolgrants.org), the funds provided to Muhammadiyah mainly to "mobilize public support towards obtaining religious policy on tobacco control and to support FCTC accession."

The US$393,234 project described as follows: "The project will seek support from inter-faith groups for tobacco control and FCTC accession. It aims for the Ijma Ulema decision on the banning of smoking to be implemented throughout Indonesia. It seeks: the issuance and dissemination of religious advice (fatwa) on the dangers of tobacco use among Muhammadiyah/Islamic institutions; consensus and advocacy about a religious policy on tobacco use." (Check out the website!)

Bloomberg Initiative had reportedly disbursed US$4.195 million to 14 anti-smoking campaigns in Indonesia. The recipients are mainly educational institutions and NGOs. The biggest fund is to establish Tobacco Control Support Center.

Others are as follows: Demographic Institute, Faculty of Economics, University of Indonesia (US$280,755), Directorate of Non-Communicable Disease Control (US$529,819), Indonesian Public Health Association (US$1.03 million), National Commission for Child Protection/Komnas Anak (US$455,911 + US$210,974), Yayasan Lembaga Konsumen Indonesia (YLKI) and Center for Religious and Community Studies (US$454,480), Bogor City Health Agency (US$228,224), Indonesian Forum of Parliamentarians on Population and Development (IFPPD) (US$164,717 + US$28,753) etc.

What's the job description of Demographic Institute of Faculty of Economics at University of Indonesia? Well, according to the US$280,755 project description: To influence the policy-makers in Indonesia for undertaking effective tobacco tax and price policy. This will be achieved through relevant advocacy activities and capacity building for raising tobacco taxes to policy-makers and other stakeholders.

Well, at least we know who's behind these institutions when they talked about something...and at least we know the connection between those behind anti-smoking campaign and the policy makers. There is no free lunch!

READ MORE!!!

Umar Patek is still out there

Police shot dead the US$10 million man Dulmatin, the most wanted terrorist in South East Asia. How about the US$1 million man Umar Patek?
Well, Indonesian police suspected Umar Patek entered Indonesia about two months ago. His colleague, Heru Kuncoro, is believed to have left the Philippines as well, Detik.com reported. Heru AKA Uceng is reportedly brother in law of Dulmatin.
Some speculated that Heru attended the funeral of Dulmatin yesterday. But Dulmatin family's spokesperson Said Ahmad Sungkar dismissed that speculation. "I didn't see him, probably because too many people," Said said.
Media reported at least 2,000 people attended the funeral in Pemalang, Central Java.
The other terrorist suspect Zulkarnaen, reportedly responsible for all the operations of JI, is also out there.
It's like Indonesian saying: mati satu, tumbuh seribu (one dies, a thousand grow).

READ MORE!!!

Mandala appoints Adrian Hamilton-Manns

Mandala Airlines has appointed Adrian Hamilton-Manns as the new chief commercial operation, who controls all commercial activities and future direction of this airline, Kompas.com reported.
Mandala Airlines is the only Indonesian carrier allowed to fly to Europe. Mandala Airlines CEO Diono Nurjadin (son of former transportation minister) expects Adrian would strengthen the airline's performance.
Before joining Mandala, Adrian was general manager commercial at Pacific Blue Airlines, a unit of Virgin Blue. He was previously chief commercial officer of IndiGo (India) and EVP commercial at South African Airways.

READ MORE!!!

Four companies win Village Internet project

ICT Ministry has finally appointed four companies to build Internet infrastructure for 5,748 villages in 4,700 sub-regencies in Indonesia worth US$40 million.
The four companies are PT Telekomunikasi Indonesia (TLKM) Tbk, PT Aplikasinusa Lintasarta (subsidiary of Indosat), PT Jastrindo Dinamika, and PT Sarana Insan Muda Selaras.
Telkom wins three packages: package 1 (Aceh and North Sumatra), package 10 (North Sulawesi, Gorontalo, and Central Sulawesi), and package 11 (West Sulawesi, South Sulawesi, and Southeast Sulawesi).
Aplikasinusa, meanwhile, wins three packages: package 7 (Bali, West Nusa Tenggara, East Nusa Tenggara), package 8 (Kalimantan), and package 9 (Maluku, Papua).
Jastrindo wins package 2 (West Sumatra, Jambi, Bengkulu, and Riau) and package 3 (South Sumatra, Lampung, Bangka Belitung, and Riau Island). Sarana Muda, meanwhile, wins Package 4 (West Java and Banten) and Package 5 (Central Java and Yogyakarta).

READ MORE!!!

When SOE Minister Wants a 'BUMN Tower'

Minister for State Enterprise Mustafa Abubakar encourages Wijaya Karya, state-run construction company and other state-owned companies (SOEs) to develop the so-called ‘BUMN Tower’. He hopes the tower could be similar to that of Petronas tower in Malaysia.

The minister made the statement when delivering a speeching marking the 50th anniversary of PT Wijaya Karya (perserso) Tbk.

One would wonder what comes into the mind of the minister when he made such statement. Do we really need this? Isn’t that mean the state-run companies are just following Malaysia? Aren’t there any other ways that make the state-owned companies to be proud of than just a tower? Why don’t focus on, improving performance so that the company or SOEs can pay bigger dividend and tax every year and create a lot of jobs? Well, it is up to the SOEs.

Meanwhile, the SOE minister said the anniversary is a right moment for the company to retreat and move forward and faces future challenges. “Now is the right time for Wika to continue to show its masterpiece both on national and global scale,” Mustafa said, as quoted by Bisnis.com.

Among the well-known projects of Wijaya Karya are coal-fired power plants (PLTU) of Labuan and Indramayu, Suramadu bridge and BI building. (Roffie Kurniawan)

READ MORE!!!

Moody’s Revises Down Indosat Outlook to Negative

Moody’s Investors Service has revised the outlook on PT Indosat’s Ba1 corporate family ratings and senior unsecured ratings to ‘negative’ from ‘stable’. The downward revision is affecting the company’s debt securities of around US$344 million.

"The revision in outlook to negative is driven by our expectation that Indosat's adjusted debt/EBITDA will rise above 3.0x and remain there for a prolonged period, and that financing requirements during 2010 will increase the company's proximity to financial covenants," Ivan Palacios, a Moody's AVP and analyst said.

"We expect Indosat's operating performance to improve over the coming year, but the improvement in revenues, EBITDA, and resulting cash flows will not be sufficient to lower leverage to less than 3.0x during 2010," said Palacios, also Moody's lead analyst for the company.

Moody's said it expects Indosat's liquidity to “remain tight over the near to medium term, as we forecast that cash on hand and cash flow from operations will not be sufficient to cover capex, working capital, and debt service requirements alone.”

“This deficit, which we expect will be largely debt-funded, could limit Indosat's headroom under financial covenants and constrain the company's financial flexibility,” it said. As a result, the company may seek new debts to refinance its US$235 million notes due in November this year.

Indosat (ISAT) gained 0.87% to Rp5800 on Thursday. At that price, Indosat has market capitalization of Rp30 trillion. (Roffie Kurniawan)

READ MORE!!!

Axiata divests up to 20% XL Axiata

Axiata, the sole ultimate shareholder of Indocel, proposes to undertake an offering of up to 20.0% of the issued and paid-up share capital of telecommunication provider PT XL Axiata (EXCL) to eligible institutional/sophisticated investors via a bookbuilding exercise. At the current price, Axiata could bag US$656 million from the divestment.

The Proposed Offering involves an international private placement by Axiata Group of up to 1,701,600,000 XL Shares (Offer Shares), representing 20.0% of the issued and paid-up share capital of XL, to eligible institutional/sophisticated investors via a bookbuilding exercise, to be satisfied entirely through cash. Today EXCL gained 1.43% to close at Rp3550.

At that price, the value of 1.7 billion XL shares being offered is about Rp6.035 trillion or about US$656 million (at Rp9200/USD).

READ MORE!!!

Bakrie & Bhakti stocks dominated trading

Bakrie-related stocks dominated stocks trading on Indonesia Stock Exchange (IDX) today, led by Bakrieland and Bumi Resources which gained 5.88% and 2.02% respectively.

Bakrieland (ELTY) topped the trading frequency with 995 million shares exchanged hands (worth Rp275 billion), followed by Bumi Resources with Rp251 billion. Bakrie Sumatra Plantation (UNSP) also gained 3.85%, while Energi Mega Persada (ENRG) gained 1.85%. Most gained on technical rebound.

Bhakti Group-related stocks also traded heavily led by Global Mediacom (Rp63.9 billion), Bhakti Investama (Rp64.9 billion), and Media Nusantara Citra (Rp17.8 billion). They gained 13.8%, 22.86%, and 6.25% respectively. Bhakti plans to divest up to 20% shares in PT MNC Sky Vision, market leader in cable TV business.

READ MORE!!!

Saleh Basarah passed away

Former Air force Chief of Staff, Marshall (ret) Saleh Basarah passed away in Jakarta this morning. Saleh was the air force chief of staff in 1973-1977 and Indonesian Ambassador to UK (1978-1981).
Born in Tasikmalaya, August 14, 1928, Saleh was president commissioner of aircraft manufacturer PT Dirgantara Indonesia (1978-1984), commissioner of PT London Sumatra Tbk in 1984-1991, and joined Bank Ganesha (controlled by Gozali family) in 1992 as vice president commissioner.

READ MORE!!!

Seven Indonesians in the global rich list

Four Indonesians---Michael B Hartono, Robert Budi Hartono, Martua Sitorus, and Peter Sondakh---are listed on Forbes Global Rich List with over US$2 billion net worth.

According to the 2010 List, Michael and Robert, both the owner of Djarum Group and Bank Central Asia, are ranked 258 with US$3.5 billion net worth each, while Martua Sitorus (substantial shareholder in Wilmar International) in No. 316 with US$3 billion, and Peter Sondakh (Rajawali Corporation) in 437 with US$2.2 billion.

Other Indonesians listed are Sukanto Tanoto (US$1.9 billion), Low Tuck Kwong (US$1.2 billion), and Chairul Tanjung (US$1 billion). Where are guys like Eka Tjipta Widjaja, Anthoni Salim, Edwin Soeryadjaya, TP Rahmat, or Wings Group?

READ MORE!!!

Sosro founder passed away

Soetjipto Sosrodjojo, founder of PT Sinar Sosro, passed away yesterday in Mitra Keluarga Hospital, Jakarta at 77.

Soetjipto AKA Liem Hway Hoo is the son of Sosrodjojo who started the business in Slawi and Tegal, Central Java. Soetjipto and his brothers Soemarsono, Soegiharto, and Surjanto managed to grow Sinar Sosro to become a major player in the industry. The group is now in the hands of Joseph Soewito, son of Soegiharto.

READ MORE!!!

Dino Djalal, new Ambassador to US?

President SBY has reportedly signed the appointment of spokesperson Dino Patti Djalal as the new Ambassador for the United States of America.

Rumors have been swirling around since last November about Dino's future position. He has been the President's spokesperson for international affairs since 2004. The spokesperson for domestic issues, Andi Mallarangeng, is now minister for youth and sports.

The serving Indonesian Ambassador for US is Mr Sudjadnan Parnohadiningrat. He has served since January 2006. He was Indonesian Ambassador to Australia (2001-2002). In August 2008, State prosecutors charged Mochamad Slamet Hidayat, former Indonesian Ambassador to Singapore, for bribing Sudjadnan US$200,000. But Sudjadnan denied the allegation saying it's up to the Corruption Eradication Commission to proceed with investigation.

If confirmed, Dino could be the youngest Ambassador to US in Indonesian history. Born in Beograd (Yugoslavia) in September 10, 1965, Dino is son of Hasyim Djalal, also a diplomat. Dino is also listed as commissioner of state-owned investment bank PT Danareksa (Persero) along side Muhammad Ikhsan (economist, special staff of VP Boediono) and Sutan Remy Sjahdeni (father of Mirza Adityaswara, chief economist at Bank Mandiri).

READ MORE!!!

Elnusa Secures US$20 Mln Oilfield Service Contract

Oil and gas service company PT Elnusa (ELSA) Tbk, a unit of Pertamina said it has secured oilfield maintenance service contract worth US$20 million. The projects will be located in Java and East Kalimantan.

In the first two months of this year, Elnusa already secured oilfield service contract worth US$55.19 million.

It said it will use hydraulic work-over, snubbing and well testing barge in taking care of the oilfields. It said at present, the company’s oilfield service division is also finalizing work-over projects, snubbing and well testing barge in East Kalimatnan worth US$28.92 million. In addition, it is also working on ongoing maintenance service project for a pipeline and production facilities in Java and Sumatra worth US$6.27 million.

Heru Samodra, VP corporate secretary of Elnusa said, “To strengthen our core business in providing integrated service to oil-gas upstream sector and maintain business growth, Elnusa has set aside capex (capital expenditure) of US$70 million this year. The fund will come from internal cash-flow.”

Elnusa engages in providing integrated geosciences services, drilling services and oil-field services. The company targets to post revenues of Rp 4.46 trillion this year, up 29 percent from last year. Pertamina holds 41.1% stake in Elnusa. In February this year, PT Benakat Petroleum Energy bought 37.2 percent stake in the company from PT Triday Esta. The remainder shares are held by the public.

Elnusa closed at Rp330 today. At that price, Elnusa has market capitalization of Rp2.41 trillion or about US$260 million. (Roffie Kurniawan)

READ MORE!!!

Sarana Menara gains another 25%

PT Sarana Menara Nusantara (TOWR) Tbk gained another 25% in the first session of trading on Indonesia Stock Exchange (IDX) this morning to make a 133% gain in its third day of trading.

Sarana Menara is the parent company of PT Protelindo, the largest independent tower operator in the country. Protelindo expects to finalize the acquisition of almost 4,000 towers from PT Hutchison CP Telecommunications, operator of GSM service Three.

Kicked off IDX its stocks trading on Monday, Sarana is the fourth company listed on IDX this year. The company raised Rp117 billion from the IPO of 112 million shares at Rp1050. Total issued shares is 1.02 billion. At Rp1360, Sarana has market cap of Rp1.39 trillion.

READ MORE!!!

Bhakti stocks trading suspended

IDX authorities suspended the trading of PT Bhakti Investama (BHIT) Tbk stocks this morning after a 225.6% jump in the period of February 16 to March 9, 2010.

The trading suspension applied this morning in both regular and cash markets for a cooling down period. Bhakti confirmed earlier its plan to acquire some companies in insurance, mining and energy sector. Bhakti is controlled by Tanoesoedibjo family.

IDX also suspended the trading of PT Pelita Sejahtera Abadi (PSAB) Tbk stocks this morning after a 210.34% jump in the period of February 17 to March 9.

READ MORE!!!

Sumatra Gold Updates Sontang Project

ASX-listed mining company Sumatra Copper & Gold Plc has given an update on the progress of its exploration activities in the Sontang project, which is located some 160 km north of Padang. The exploration indicates a “significant copper-arsenic soil anomally,” and “large gold anomaly,” the company said.

It said recent activity at Sontang during January and February 2010 has focused on tracing mineralization from Sontang East north-westwards to the Sontang Central and Sontang West prospects with a program of ridge and spur soil sampling at 25 meters intervals. The geochemistry has also been undertaken in conjunction with surface mapping.

“Results from ridge and spur soil sampling have outlined a significant copper-arsenic soil anomaly, marked above +100 ppm Cu (maximum 420 ppm Cu) and 140 ppm As (maximum 4,020 ppm As), that is at least 400 meters by 100 meters in size at Sontang West,” the company said.

It said work at Sontang is continuing with further soil sampling, mapping and sampling of exposures. The company hopes that the drilling on the massive ‘sulphide’ bodies already identified before the fourth quarter of 2010.

“We are very excited by the new results form Sontang,” said Managing Director of Sumatra Gold & Copper, Joceln Waller. “The discovery of further mantos, plus the large gold anomaly and results from the jasperoidal veining together with the new copper-arsenic target indicate that this is a much larger and more complex system than previously thought.” (Roffie Kurniawan)

READ MORE!!!

Jakarta Setiabudi boosts ownership in Cikini Realty

Property and hotel developer PT Jakarta Setiabudi Internasional Tbk said on Wednesday that it has purchased new shares issued by its unit PT Hotel Cikini Realty worth Rp 16.7 billion that will lead to a rise of its shares in the company 99.58% from 99.02% previously.

Cikini Realty is the operator of Hotel Formule 1 hotel chain. Cikini Realty will use Rp 9.2 billion of the funds to repay debts to Bank CIMB Niaga. The other shareholder of Cikini Realty is PT Metropolitan Realty International, which holds the remainder 0.42%.

Jakarta Setiabudi said the capital injection to Cikini Realty is aimed at supporting the unit’s business expansion and operation. It also said that the capital injection has also been approved by its creditors, i.e. PT Bank OCBC Nisp Tbk and PT Bank OCBC Indonesia. (Roffie)

READ MORE!!!

SBY confirmed Dulmatin's death, got standing applause

President SBY has confirmed one of three guys shot dead yesterday in a police raid in Pamulang, Tangerang, Banten province is the most wanted terrorist Dulmatin. He announced that in a speech before Australian parliament in Canberra this morning.

"Before enclosing this speech, I inform you that after Noordin M Top and Azahari, Indonesia had brought down Dulmatin," SBY said. Australian parliamentarians responded with a standing applause, Detik.com reported.

Mardigu WP, terrorism analyst, told the online publication that Dulmatin returned to Indonesia from the Philippines accompanied by Umar Patek and Zulkarnaen, believed to be Dulmatin's successors.

Can we claim the US$10 million bounty now?...

READ MORE!!!

Pertamina acquires 15% Semai II Block

State-owned oil and gas firm PT Pertamina has reached an agreement with a consortium of Murphy Semai Oil Co. Ltd., PTT EP Semai II Ltd, and Inpex Seram Sea Ltd to acquire 15% of participation interest in Block Semai II, offshore West Papua. The acquisition is pending government approval.

READ MORE!!!

Dulmatin shot dead? Obama will give out US$10 Million!

We're just weeks away from the visit of US President Barrack Obama when media reported today that the most wanted terrorist Dulmatin has been shot dead in police raid.

Dulmatin, mainly linked to the 2000 Bali bombing, reportedly shot dead in an Internet kiosk in Pamulang, Tangerang, Banten province. Police has yet confirm about that. Police only announced three people shot dead in the raid.

Terrorist observer Al Chaidar, meanwhile, told Tempointeraktif.com that it's Umar Patek, Dulmatin's associate, who was shot dead, not Dulmatin."According to my sources within the Jamaah Islamiyah and Darul Islam, they believed it's not Dulmatin," Chaidar said.

The US State Department has offered a reward of US$10 million for information leading to the arrest of Dulmatin and $1 million for Umar Patek. Interestingly, Straits Times reported on February 9, 2010 that Dulmatin was still alive in the Philippines despite earlier reports of his death. "I believe, from what my sources say, he is still in Sulu, southern part of Philippines," Major General Juancho Sabban, the head of the Philippine Marines was quoted by the newspaper.

Sidney Jones, senior advisor at International Crisis Group, admitted she's not sure about whether Dulmatin is shot dead. "I'm not sure it's Dulmatin because he's reportedly in Mindanao. If he returned to Indonesia, with whom?"

Intelligence observer Wawan Purwanto, meanwhile, said it is likely that Dulmatin has been shot dead."Fingerprint convinced us it's Dulmatin, but we have to wait the DNA test," Wawan said.

Detik.com source, meanwhile, claimed Dulmatin AKA Joko Pitono often came to Jakarta for garment business. As of 8PM, police have identified two corpses as R and H. The other body is identified as YI or Yahya Ibrahim. DNA test on "Dulmatin" is being carried out. The results will be announced in three days.

Well, if he will be confirmed as Dulmatin, President Obama might give out US$10 million to Indonesian police. No? Obama's schedule is not clear yet. But Indonesian officers confirmed Obama will not cancel the visit (again).

READ MORE!!!

Pertamina-PetroChina Cuts Output To Meet Gas Flare Rule

The oil production of the joint operating body (JOB) Pertamina-PetroChina East Java has been reduced by 3,000 barrels of oil per day in order to meet the gas flare target of a maximum of 14 million cubic feet per day, in line with the Law on Environment, said Chairman of the upstream oil and gas regulatory body BPMigas Raden Priyono Monday.

He however did not disclose the current production level of the JOB. But, on February 24, President Director of PT Pertamina EP Cepu, Haposan Napitupulu said as of the date, the JOB Pertamina-PetroChina has slashed oil production to 41,000 bopd from its capacity (normal production) of 48,500 bpd.

The oil produciton of the Kangean field has also been reduced by up to 2,500 bpd as it only produced water. Oil production of the Kodeco oil field has also been reduced by 4,000 bpd.

Pertamina also said it is expanding its overseas market for its downstream oil products, including aviation fuel (Avtur) and oil fuel. The company is planning to open gas stations in Malaysia and Australia, said Pertamina Marketing and Commercial Director, Djaelani Sutomo.

Priyono also said that the average oil production in the first two months of this year has reached 951,000 bpd, far below the 2010 State Budget assumption of 965,000 bpd. Average production in February alone was quite encouraging, at 959,000 bpd, just below the State Budget target. (Ferdy Hasiman)

READ MORE!!!

President Proposes Nominees for BI Deputy Governor

President Susilo Bambang Yudhoyono has proposed three candidates for Bank Indonesia deputy governor, who will replace the incumbent Siti Ch. Fajriah, Minister for Secretary of State Sudi Silalahi told reporters at the Halim Perdanakusuma Airport on Monday night, before the President headed for Australia.

Siti, who is currently sick due to stroke, will end her term on June 9 this year. According to the Central Bank Law, 3 months before a deputy governor term ends, President is required to propose several names to the House of Representative (DPR). In return, DPR will select one of those candidates, proposed by President.

According to Kompas.com sources, the three candidates are two from internal Bank Indonesia, i.e. Terry Wargiyo and Halim Alamsyah, and one from external Krisna Wijaya, a former BRI executive. (Roffie)

READ MORE!!!

The most corrupt? Certainly!

It's surely a slap in the face! But it's also a challenge! Political & Economic Risk Consultancy (PERC) ranked Indonesia the most corrupt in Asia Pacific among 16 countries surveyed.

PERC surveyed 2174 executives in Asia, Australia, and US about corruption perception in 16 investment destinations in Asia Pacific. Indonesia, once again, is No. 1 in corruption. The irony is, Singapore, the favorite place to hide for Indonesian corruptors, is considered the "cleanest".

Corruption, collusion, and nepotism, in reality, enlarged since Soeharto's downfall. Corruption has decentralized along the regional autonomy, political parties, State institutions, etc.

READ MORE!!!

Flip-flop on electricity tariff

January 13, 2010, Kompas.com published an article titled "Pemerintah pastikan harga BBM dan TDL tidak akan naik" (government assures fuel and electricity tariff won't be raised) this year, quoting Hatta Rajasa, coordinating minister for the economy. Today, finance minister Sri Mulyani said "electricity tariff will raise by 15% in the second half." Which government we should trust in?

Here's the statement from Hatta less than two months ago: With higher electricity subsidy, the state-owned PLN can be empowered without necessarily raise the basic electricity tariff (TDL).

In the revised 2010 Budget proposed by government, electricity subsidy would increase 44.2% this year to Rp54.5 trillion. "TDL will increase 15% as of July 2010," Sri Mulyani said today.

Well, probably the government in January is different with government today (because of the Century case investigation).

READ MORE!!!

Indosat profit drops 20%

PT Indosat Tbk, controlled by Q-Tel, reported net profit of Rp1.88 trillion last year, dropped 20% from 2008 on squeezed margin.

Indosat reported sales revenue of Rp18.66 trillion last year, lower by 1.4%, while its operating expenses grew 9% to Rp15.18 trillion. The company's debts increased 17% to Rp25.47 trillion, while its subscribers declined 9.3% to 33.1 million.

The stock gained 3.6% to close at Rp5750 today on broader market sentiment. At that price, Indosat currently has market capitalization of Rp31.24 trillion, No. 21 on IDX below Indofood (INDF).

Q-Tel acquired 40.8% shares in Indosat in 2008, later raising its ownership to 65% in a bid to tap the growth potential in the fourth largest most populous country in the world. Indosat stock has gained 21.7% so far this year, but still below its peak last year (Rp6050).

READ MORE!!!

IDX gains 1.85%

Global and regional markets sentiment helped IDX to gain 1.85% and closed at 2626 today. Telkom and Astra International led the blue chips with 3.61% and 6% gain respectively.

Nikkei closed higher by 2.09%, while Hang Seng +1.97%, KOSPI +1.56%, Straits Times +1.55%, and Shanghai +0.73%. Footsie opened higher by 1.35% in London.

Bumi Resources advanced further by 2.08%, while Bukit Asam +2.24%. Indofood and Unilever increased 3.36% and 2.63% respectively. Astra Agro, TINS, ANTM, RALS, PGAS, MEDC, ISAT, BCA, BRI, and UNTR were all in positive territory.

Top gainers of the day are Sarana Menara (+49.52%), Latinusa (+23.91%), RAJA (+10.34%), Multipolar (+9.09%), Global Mediacom (+7.14%), and Astra International (+5.98%). Top losers with substantial trading value are Benakat Petroleum (-4%), Elnusa (-2.94%), and IKAI (-4.55%).

READ MORE!!!

Sarana Menara gains 29.5%

PT Sarana Menara Nusantara (TOWR) Tbk has kicked off the trading of its stocks on IDX this morning with 29.52% gain. But trading value was insignificant at Rp5 billion.

Sarana Menara is the parent company of PT Protelindo, the largest independent tower operator in the country. Protelindo expects to finalize the acquisition of almost 4,000 towers from PT Hutchison CP Telecommunications, operator of GSM service Three.

Sarana is the fourth company listed on IDX this year. The company raised Rp117 billion from the IPO of 112 million shares at Rp1050. Total issued shares is 1.02 billion. At Rp1360, Sarana has market cap of Rp1.39 trillion.

Other Top Gainers this morning are PT Latinusa (NIKL) Tbk (+19.57%) and RAJA (+10.34%), Multipolar (+9.09%), and of course Astra International (+5.71%).

READ MORE!!!

New record for Astra

The stock price of Astra International (ASSI) reached its new record high this morning at Rp38900 to make it a US$17 billion (Rp157.5 trillion) company. Astra gained 5% this morning.

Astra is just inches away from becoming the largest company on IDX. Astra is only US$1.4 billion away from taking over the position from Telekomunikasi Indonesia (TLKM). TLKM currently has market cap of Rp170 trillion and already lost 10.6% this year, while Astra gained 12%.

Two of Astra subsidiaries, PT United Tractors (UNTR) Tbk and PT Astra Agro Lestari (AALI) Tbk are also listed in the Top 20. UNTR is currently ranked 10th with market cap of Rp56.04 trillion, while AALI ranked 17th with market cap of Rp37.7 trillion. UNTR is now bigger than Bumi Resources (Rp47 trillion) and just inches away from No.8 Adaro Energy (Rp59.5 trillion). The top 7 will unlikely change in the coming weeks, because No. 7 Unilever currently has market cap of Rp88.9 trillion, quite substantial gap with Adaro.

READ MORE!!!

Farmers as human shield for blacklisted CPO producers?

What a shameful act! Business associations condemned Unilever for its decision to blacklist some CPO producers from Indonesia. They said Unilever's action has cut the price for fresh fruit bunch (FFBs) 10% already. This is strange because both prices in futures and physical markets increased substantially in recent months.

Poor Indonesian farmers! Apkasindo told journalists at Hotel Shangri-La Friday night that few months ago the FFBs were Rp1450/Kg, reduced to Rp1300 at the moment.

CPO Futures contracts for May delivery in Malaysia closed at RM2670 per ton on Friday, far above the prices in the same month last year (below RM2000/ton). In the physical market, CPO prices in Indonesia are currently above Rp7600 per Kg or about US$825 per ton.

Look at how much profit companies like Astra Agro, London Sumatra Plantation (LSIP), or Golden Agri Resources, Indofood Agri Resources, Wilmar, or First Resources have booked. Indofood Agri reported net profit of Rp1.5 trillion last year; Golden Agri (Sinarmas) reported net profit US$607 million or Rp5.65 trillion, First Resources (Surya Dumai Group) at Rp1.24 trillion; Astra Agro Rp1.66 trillion. Bear in mind, all of these guys operate plantations in Indonesia. So, four business groups generated net profit of Rp10 trillion last year from plantation, mainly palm oil, last year.

Why they keep suppressing farmers with low prices of FFBs? Bear in mind, palm oil producers generated the best profit margins, but please ask farmers and workers how much they make? Please don't use them as "shield" for your ...And for tax officers, make sure these companies don't evade tax. One group has been alleged for doing so (Rp1.3 trillion?)...Others?

READ MORE!!!

SBY might prepare "jazz blues" album

President SBY has released three albums, mainly considered "melancholic pop". Tonight, the president will enjoy performance of jazz musicians and famous artists like Toni Braxton at the Java Jazz Festival, Jakarta.

President's Office informed Detikhot.com today that the President will come to Hall D2 of Jiexpo Kemayoran where Braxton will perform. She might sing "Unbreak My Heart"?

A friend said "who knows he could get inspiration to write the fourth album, probably jazz blues." Seriously? "You better ask SBY himself. I heard the he prepared some titles already, Century Blues, Grey Pansus, White Lies, Yellow Traitors, Green Green Flip Flop, Dark Blue Sky," the crazy friend said.

"I also heard VP Boediono will write two songs: God Knows and I Swear...FM Sri Mulyani has yet to decide what to write."

READ MORE!!!

When Benakat is bigger than Energi Mega and inches away from MEDCO

Unbelievable! The newly listed Benakat Petroleum (BIPI) currently has market cap of Rp7.5 trillion, bigger than Energi Mega Persada (ENRG), and just inches away from Medco Energi (Rp8.5 trillion). Oops, it is triple the market cap of PT Elnusa (ELSA) Tbk. That much?

Some said acquisition of 37% shares in Elnusa boosted Benakat. Well, ELSA only has market cap of Rp2.48 trillion, while BIPI reported net loss of Rp32 billion in eight months of 2009. It acquired coal concessions? When these assets will generate substantial revenues?

Benakat has surged 78.6% from its IPO less than a month ago. Yesterday, the stock soared 22% to Rp255. May be next time, just sim salabim and Rp50...

READ MORE!!!

Who owns Bumi Resources?

PT Bumi Resources (BUMI) Tbk is still the busiest "casino" on Indonesia Stock Exchange (IDX). Interestingly, according to the report filed by share registrar PT Ficomindo Buana, nobody owns over 5% shares in this company.

There are 51,861 shareholders in BUMI, consisted of 50,638 domestic investors and 1,223 foreign investors. Individual domestic investors (49,666) own a combined 25.34% shares, while 444 foreign individual investors only own 0.5%. Foreign institutions (792) control the majority of shares with 53.95%, while 715 domestic companies own 18.72%.

So, why BUMI is still "controlled" by Bakrie Group and its people? Through vehicles?

READ MORE!!!

Former central bank governor leaves prison

Former governor of Bank Indonesia, Burhanuddin Abdullah, has been released from Sukamiskin prison in Bandung, West Java this morning after serving his jail sentence since October 2008 for graft.

"I'm fine and hopeful. Prison is a place where I got more friends. It's like a pesantren (Islamic boarding school). Now, I want to close the chapter and looking forward a promising future," Burhanuddin said.

The Corruption Court sentenced Burhanuddin to five years in jail for his role in the misuse of Rp100 billion funds at Bank Indonesia in 2004. Last year, the Jakarta High Court upheld the lower court's verdict and extended his imprisonment by six months. But the Supreme Court reduced his jail term to 3 years in August 2009.

Burhanuddin is the first central bank governor elected by the House of Representatives (DPR) through a voting process in 2003. His predecessors were mainly appointed by Presidents. Born in Garut, West Java, July 10, 1947, Burhanuddin graduated from Padjajaran University with bachelor of science in agriculture, and master in economics from Michigan State University. Then president Abdurrahman Wahid appointed him as coordinating minister for the economy in June 2001, but he served the job for few months because of impeachment of Wahid.

READ MORE!!!

Stronger CPO boosts plantation stocks

CPO futures contracts for May delivery closed substantially higher at RM2674 on Malaysia Derivatives Exchange yesterday. Plantation stocks gained substantially this morning in Malaysia, Singapore, and Indonesia.

Indofood Agri Resources opened higher by 2.5% on SGX, while First Resources, Wilmar, and Kencana Agri---all with plantations in Indonesia, gained 1.9%, 1.5%, and 1.7% respectively. On IDX, Tunas Baru, Sampoerna Agro, and PP London Sumatra advanced further, while BW Plantation declined 1.45%.

CPO futures opened slightly higher this morning with April-June contracts increased 7-11 RM/ton. In Jan and Feb 2010, the average spot month settlement prices were RM2554.9 and RM2541 per ton respectively, increased 35% and 31% from the same months of 2009. (Teguh Hidayat)

READ MORE!!!

IDX opens higher by 0.3%

The composite index of IDX opened higher by 8 points (0.32%) this morning as investors were cautiously responding recent political dynamics.

President SBY sent a strong signal to keep VP Boediono and finance minister Sri Mulyani in their respective post, pretty much in line with "market" expectations. The index looks moving to higher territory on this when IDX advanced further by 0.6% few minutes after the opening. But then the index retreated to gain only 0.4% in the firs hour of trading.

The index declined slightly yesterday with Bakrie-related stocks closed mixed. BUMI and BTEL gained, while ELTY and ENRG lost 1.26% and 2.13% respectively. Regional markets closed mainly lower yesterday, led by Shanghai's 2.4% drop.

But this morning, most markets in the region rebounded sharply led by Nikkei's +2% and Hang Seng's +0.8%.

READ MORE!!!

SBY keeps Boediono & Sri Mulyani

President SBY sent strong signals to keep VP Boediono and finance minister Sri Mulyani Indrawati in the cabinet despite pressures from politicians, especially DPR's recommendation and conclusion on Century bailout.

SBY defended the bailout policy and praised both Boediono and Sri Mulyani Indrawati for making the right decision to save Indonesian economy from global financial meltdown.

Constitutional experts said the fact that the President's televised speech Thursday night (to defend both the policy and people behind the policy) rebuffed DPR's conclusion implies to the need to bring the issue to Constitutional Court. So, it's not (completely) over yet.

READ MORE!!!

PGN Seeking New Gas Source for Jakarta , Banten Customers

The country’s largest gas distributor PT Perusahaan Gas Negara Tbk (PGN) said that it is currently seeking gas sources to be distributed to its industry customers in Jakarta and Banten after gas received from a unit of Pertamina stopped on Februady 28, as gas sales and purchase contract expired on the day.

Under gas sales and supply contract signed on January 10, 1998 , which was amended on December 16, 2009 , PT Pertamina Hulu Energi (PHE), a unit of state-owned oil and gas company PT Pertamina, distributed up to 1.8 TBTU (trillion british thermal unit) of gas through its ONWJ gas pipeline. As the gas volume has been reached on February 28, the gas supply was then stopped.

The gas supply from ONWJ gas pipeline has been distributed by PGN to 150 industry subscribers in Jakarta and Banten area.

“Considering the impact (of the cease of gas supply) on industry activities in those areas, PGN is weighing a number of options in order to continue gas flow, including options that are being studied jointly with PHE and (upstream oil and gas regulator) BPMigas,” PGN said in a filing to the Indonesian Stock Exchange. PGN however did not disclose a number of options nor impact on its industrial customers before it would get new gas supply. (Roffie Kurniawan)

READ MORE!!!

Medco Signs MoU with Libya over Area 47 Block

Oil and gas company PT Medco Energi Internasional Tbk, found by businessman Arifin Panigoro, said its wholly owned unit Medco International Ventures (MIV) has signed a memorandum of understanding with Libya Investment Authority (LIA) over the development of lucrative onshore Area 47 oil and gas block in Libya.

LIA, a sovereign wealth funds of Libya, is a new partner of Medco in developing the Area 47 block. On December 21, 2009, LIA has finalized the acquisition of 100% shares in Verenex Energy Inc. (verenex), a listed oil and gas and company in Canada, which holds 100% shares in Verenex Energy Area 47 Ltd (VEAL). VEAL is the partner of Medco International, which holds 50% interest in the Area 47 and also the operator of the block.

Under the MoU, both parties agreed that the operator of the Area 47 block will still be in the hands of VEAL, which is now a subsidiary of LIA, while Medco International Ventures will be responsible to provide services and support on technical and operational aspects to Verenex Energy.

MIV is fully owned by Medco Energi Global Pte Ltd, a sub-holding which is also a wholly owned subsidiary of Medco Energi. MIV holds 50% interest in the oil and gas exploration block, in area 47, located in Ghadames Basin, Libya.

Medco Energi said that both LIA and MIV will cooperate to secure approval on Working Program and Budget for 2010 from the Lybian government as well as securing extension of exploration extension and the re-implementing drilling program in the Area 47.

Medco Energi and Verenex won the rights to develop the block for 30 years in 2005. Under the deal with the Libyan government, Medco and the Libyan sovereign wealth fund will receive 13.7 percent of revenue and the Libyan government 86.3 percent. The block, which is believed to contain about 2.15 billion barrels of oil equivalent, is expected to begin production in 2013-2014. (Roffie Kurniawan)

READ MORE!!!

Shall we close down Mutiara (Century)?

The House of Representatives (DPR) has finally concluded that the disbursement of short-term financing facility (FPJP from Bank Indonesia) and capital injection of Rp6.7 trillion into Bank Century (now Mutiara) were illegal. The question, should LPS pull out the funds from Bank Mutiara?

Pulling out the funds from Mutiara would mean closing down the bank, unless someone want to purchase the bank and inject huge amount of funds, right?

For sure, that's not one of the recommendations provided by DPR. But if the bailout was wrong and considered illegal, what is the status of the funds in Mutiara? Or we could raise a different question, if the funds in Mutiara will be kept (as a result of a bailout policy), can we say the bailout illegal? A friend said "that's a stupid question." Probably lawyers could provide better answer...

READ MORE!!!

SBY-Boediono lost DPR battle

SBY-Boediono only gets 212 out of 537 votes; opposition got 325 votes, even bigger than the first round of voting. Opposition got a boost from PPP and PKB, two coalition members of SBY-Boediono.
It's like PDI-P, the winner of 1999 election and the largest party with over 30% seats, lost the presidential election in 1999 to a coalition of parties led by Golkar, PAN, and PKB. That time, PDI-P also lost in the House Speaker race to Golkar.
Still, we can't say "adios" for Boediono and Sri Mulyani. The road to impeachment is open, but still long way to go. Unless...

READ MORE!!!

SBY-Boediono lost first round

Supporters of SBY-Boediono in the Century investigation lost the first round of voting to the opposition. Out of 540 legislators, only 246 supported new proposal from Demokrat Party-led "coalition".

The opposition, who wants a straight voting on two options provided by the Special Committee to investigate Century, won with 294 votes, consisted of 292 votes from five political parties (Golkar, PDI-P, PKS, Gerindra, and Hanura) plus two votes from SBY's coalition (PPP and PKB).

Will it be the same for two options in the second round of voting?

Option A: Policies related with Bank Century were justified, and

Option C: Option C: Policies related with Bank Century were wrong.

READ MORE!!!

Two wives compete to replace husband-regent

This is something! Probably the first in modern Indonesian history that two wives are competing in an election. This is about Mrs Haryanti and Mrs Nurlaila, wives of Kediri regent, Sutrisno, who enter a fierce race to be the next regent (2010-2015).

Detik.com reported that Golkar and PPP have endorsed Mrs Haryanti, the first wife, while National Mandate Party (PAN) nominates the second wife Hj Nurlaila. Golkar and PPP have reportedly jumped ship from Nurlaila to Haryanti. Their husband, Sutrisno, raised to power with the support of PDI-P. It is not clear who will get the support from PDI-P.

Earlier on Tuesday, Detik.com quoted political science lecturer at Airlangga University in Surabaya, Suko Susilo, saying it's unethical to have both the regent's wives entering the race. Well...

READ MORE!!!

Rozik to replace Kuntoro at Holcim

Rozik Boedioro Soetjipto, former director of general for mining at energy ministry, is nominated as the new independent commissioner of PT Holcim Indonesia (SMCB) Tbk to replace Kuntoro Mangkusubroto (former energy and mining minister), who resigned after his appointment as head of President's special delivery unit (UKP4).

Rozik, born in Karanganyar, Central Java, in August 20, 1943, is also listed as commissioner at coal miner PT Bayan Resources (BYAN) Tbk. He was appointed minister for public works by president BJ Habibie in 1999.

Meanwhile, Arief T. Surowidjojo, founder of law firm Lubis Gani Surowidjojo, is nominated as the new vice president commissioner to replace Thomas A. Clough (resigns).

READ MORE!!!

Public rallies, here & there

Several groups have informed police about their activities today. Some will stage a public rally at Wisma Bakrie, Aburizal Bakrie's residence, KPK office, National Police HQ, and of course in front of the MPR/DPR building. Stay away from these areas!

The scheduled public rallies are also at Constitutional Court's compound, HI Circle, State Palace, and Jakarta's Council (DPRD). PEACE GUYS!

READ MORE!!!

Pan Asia Expands Kalimantan Mine

Australian company Pan Asia Corporation Ltd (ASX code: PZC) announced on Wednesday that it has signed a memorandum of understanding (MoU), outlining the proposal to expand the main ATA open pit mine into the TCM concession.

It said the MoU was a result of the company’s discussion with the contracting company currently responsible for mining at a second open pit in the PT Arutmin ATA concession.

Pan Asia said upon further technical investigation, it is both parties’ intention to sign an agreement to cooperate in the mining and trading of coal. The agreement will outline in detail the key commercial terms, including the tonnage to be extracted, the mining rate, the timeline and the profit sharing arrangements.

Importantly, it (Pan Asia) will not bear any capital cost associated with the development of these open pit mining operations. It said it will also benefit upon the completion of the open pit mining as the finished open pit will allow the company to access to possible underground coal mining operations at TCM. It will also save “significant capital expenses” in developing these future underground operations.

Pan Asia CEO Alan Hopkins was happy with the progress as the company “will have near-term cashflow without bearing any of the capital costs, typically associated with developing an open pit mine.”

To asses the plan expansion to the neighboring open pit mine, the company’s drilling activities are now focusing on an area 1.6km x 1km, located adjacent to the ATA pit. The latest two holes drilled in this area returned significant coal intersections, it said.

Coal samples are being sent to PT Interfek Utama Laboratory Services in Banjarbaru, Kalimantan, which is a fully internationally accredited coal testing laboratory.

Pan Asia is a rapidly growing diversified resources company listed on the Australian Securities Exchange. It has offices in Perth, Australia and Jakarta. The company aims to be a major supplier of key resources into the expanding Asian markets. (Roffie Kurniawan)

READ MORE!!!

Metrodata divests 30% Kepsonic

PT Metrodata Electronics Tbk has entered into SPA with Mr Jang Samki, an affiliated party of Woi Song Invalyue Co Ltd for the divestment of 30% issued shares in PT Kepsonic Indonesia, a plastic injection company, for US$1.2 million.

Kepsonic is a supplier of electronic components where Metrodata currently owns 30% shares. Kepsonic is in the process of capital raising for US$3.4 million. Metrodata's ownership would dilute to 17.85% if it's not participating in the process. "We will use the proceeds to strengthen our working capital and reduce our debts," Metrodata said in a statement this morning.
In late January 2010, Metrodata informed BT Frontline Pte Ltd about its plan to exercise the put option on all its shareholding in PT E Metrodata Com (EMC). According to the joint venture agreement, BT Frontline Pte Ltd is obliged to purchase Metrodata's shares in EMC, a JV with BT Frontline and Sun Microsystem Inc.
PT EMC was established in January 3rd, 2007. It is not clear how much Metrodata will get from the put option. According to Metrodata's financial report, the company owns 51% shares in EMC with total asset of Rp55.1 billion. Metrodata is also the owner of 31% shares in PT Sun Microsystems Indonesia with total asset of Rp252 billion.
Metrodata reported net sales revenue of Rp2.32 trillion in Jan-Sep 2009, increased slightly from Rp2.314 trillion in the same period of 2008. The company's net profit, meanwhile, dropped substantially from Rp23.6 billion to Rp7.8 billion in the period.
Metrodata is currently owned by Ockham Cay Holding Ltd (BVI), Hiskak Secakusuma, and public (78.71%).

READ MORE!!!

Tap Oil Secures Govt Approval to buy 24% Rangkas Block

Tap Energy (Rangkas) Ltd, a subsidiary of Australian Tap Oil Ltd, said on Tuesday that it has secured the necessary approval from the Indonesian government to acquire 24% interest in the Rangkas Block, onshore West Java from Lundin Petroleum AB.

Tap Energy reached a deal with Lundin in late November last year to buy the stakes. Rangkas Block covers an area of 3,997 km2, located in southwest of Jakarta. After the stake purchase, Lundin Rangkas B.V’s interest in the block reduced to 51% and The remainder 25% is held by Carnarvon Petroleum (Indonesia) Pty Ltd). Lundin Rangkas is the operator of the block.

Tap Energy said that previous exploration seismic and drilling in the block, along with the presence of surface oil seeps, indicates the presence of an active petroleum system. A seismic survey of up to 500 km is planned for the first half of 2010, targeting a number of leads identified in recent reviews of the block.

“Those reviews lead us to believe that there is significant untested potential, including previously unrecognized deep targets analogues to proven production in adjacent blocks,” it said. (Roffie Kurniawan)

READ MORE!!!

Bayan amends coal sale facility agreement

Coal miner PT Bayan Resources Tbk said on Tuesday that it has signed deed of amendment over facility agreement and FOB (free on board) contract for the sale & puchase of coal with Vitol Asia Pte Ltd last Thursday (Feb 25).

The original facility agreement between the two parties was signed on Nov. 25, 2007 . The second amendment was made on June 25, 2009 .

Under the latest amendment, installment made by Bayan Resources is raised to US$6.5 from US$5, for every ton of coal delivered to Vitol.

Both sides also agreed to delay the delivery of coal amounting to 1.18 million tons from initial plan of 2010 to between 2011 and 2014.

In addition, it was also agreed to reduce the recovery amount that must be paid under export contract worth US$9.26 million. (Roffie Kurniawan)

READ MORE!!!

Jakarta Setiabudi to refinance subsidiary loan

Property company and hotel operator PT Jakarta Setiabudi Internasional Tbk said in filing to the Indonesian Stock Exchange on Tuesday (March 2) that has signed a loan deal with PT Bank ICBC Indonesia with an undisclosed value.

The loan will be used to refinance medium term notes (MTN) worth Rp US$12 million of its subsidiary PT Metropolitan Realty International (PT MRI), which will mature at end of this month.

It said the loan to MRI is being treated as loan by MRI shareholders. The loans will be withdrawn prior to due date of the MTN.

Jakarta Setiabudi holds 75% stakes in MRI. The company had total asset of Rp2.57 trillion as of Sept 30, 2009. The stock is rarely traded. The last quoted price was Rp700 in Oct 15, 2009. At that price, Jakarta Setiabudi has market capitalization of Rp1.62 trillion.

The company reported sales revenue of Rp651 billion in nine months of 2009, unchanged from the same period in 2008, with net profit of Rp74 billion, doubled from nine months of 2008. Jan Darmadi's family is the controlling shareholder of Jakarta Setiabudi. (Roffie Kurniawan)

READ MORE!!!