Blue Chip Firms Profit Increase

Some non-banks blue chip firms with huge market capitalisation in Indonesian Stock Exchange (IDX) had booked average 79% net profit increase in 1st semester of 2008 which supported by commodity price increase.

Until the end of July, 7 out of 15 company which had the biggest capitalisation in IDX had announce officially its 1st semester financial report.

And from the seven companies, three of them are PT Astra Agro Lestari Tbk, PT United Tractors Tbk and PT Tambang Bukit Asam Tbk, got profit more than double.

There are an assumption that factors such as commodity price increase like crude palm oil and coal become the stimulus for this three companies performance leap.

7 companies net profit in 2008

Astra International  4.754

Astra Agro Lestari  1.597

United Tractors  1.206

Tambang Bukit Asam    710

Semen Gresik  1.138
—————————————————–
(In IDR billion)

OECD: Indonesia Should Reach 8,5% Economic Growth

OECD: Indonesia Should Reach 8,5% Economic Growth

Organization for Economic Cooperation and Development (OECD) said Indonesia should reach 8,5% economic growth annually to reduce poverty and unemployment rate.

Jose Angel Gurria OECD Secretary General (07/24) said to reach 8,5% growth, economic policy should be backed up with political will.

Further, Guria said with consistent economic growth on that level, poverty rate believed to be decrease to 4% from 18% in 2006.

But Guria also admit Indonesia economic performance improvement in last few years.

He gave an example, 2007 economic growth which reach 6,3% or the highest achievement after the crisis.

Guria even estimate Indonesia had graduates from 1997-1998 monetary crisis, which showed by some economic indicator which had reach the same level like the pre-crisis position.

But, he mention the main point is how fast Indonesia move forward because other countries also change and move fast.

OECD also invite Indonesia to be its member. Because Indonesia perceived as the country which have an influence to world economic.

Other countries invited to be OECD member are India, China, South Africa and Brazil. and other countries plan to be invited are Chile, Estonia, Israel, Russia and Slovenia.

So far, OECD had 30 member countries, this group origin come from an organisation to administer the Marshall Plan for the reconstruction of europe after world war II, then in 1961 its membership was extended to Non-European states and its the beginning for OECD.

Pefindo Announce the First Indonesian Mutual Fund Rankings

Pefindo Announce the First Indonesian Mutual Fund Rankings

PT Lembaga Pemeringkat Efek Indonesia (Pefindo), an Indonesian ratings agency, Thursday (07/24) had announce its Mutual Fund Ranking (PMR) which asses 116 mutual fund products and aimed to facilitate investors to select the best mutual fund products suit with their need.

Kahlil Rowter Pefindo President Director (07/24) said the mutual fund products which its rank assessed are the mutual fund which had two years minimum Net Asset Value (NAB) historical data, daily per unit, monthly asset value and at the date of ranking assessment had IDR 25 billion minimum NAB.

From 400 mutual fund products, there are 116 products that meet Pefindo criteria which consist of 21 stock mutual fund, 48 fixed income mutual fund and 47 balanced mutual fund.

Salyadi Saputra said to decide ranking for each mutual fund products, Pefindo had use three measurements such as yield analysis, volatility analysis which measure by average differential risk of each mutual fund product and asset value of each mutual fund product.

Further, Salyadi said so far the published analysis on mutual fund emphasis on rate of return on an investment.
Whereas in fact return rate only one of the consideration on investment.

Pefindo plan to update the mutual fund ranking regularly on quarterly basis, the next release would be on October 2008.

Mutual Fund Ranking

Stock Mutual Fund

> Fortis Ekuitas
> Dana Ekuitas Prima

Fixed Income Mutual Fund

> Danamas Stabil
> Prospera Obligasi Plus
> Trimegah Dana Stabil
> Haji Syariah
> BNI Dana Syariah

Balanced Mutual Fund

> Schroder Dana Terpadu II
> Prospera Balance
> Mandiri Investa Syariah Berimbang
> Bahana Dana Infrastruktur
> Dana Selaras Dinamis

Three State Own Banks had Revise its Credit Target

Three State Own Banks had Revise its Credit Target

The recent sluggish economic condition had force some state own banks to revise its business target.

Agus Martowardjoyo PT Bank Mandiri Tbk president director said the bank had revise its credit growth target from 22% to 18% as an impact of sluggish economic situation and high inflation rate beside credit interest rate have a potetial to be raise, so we need to make an adjustment.

Bank Mandiri had revise target for all kind of credit such as consumption, corporate and commercial.

Further, Agus mention Bank Mandiri credit growth in first semester still high but we make this strategy to anticipation the credit growth slowdown for second semester.

In 2007, total credit had channeled by Bank Mandiri had reach IDR 126.82 trillion and after the revision the total credit channeling will reach IDR 149.6 trillion.

Other state own Bank, PT BNI Tbk had revise its credit target for 2008. early this year, BNI had set its credit growth 22% but after the revision its become 20%.

Gatot M Suwondo BNI president director said the revision is the impact of recent sluggish economic condition and to stop the inflation, Central Bank surely will raise interest rate. Automatically it will affect credit interest rate and in that situation, banks will face difficulties to offer new credit.

Meanwhile, PT BRI Tbk increase its credit target for this year.
Sofyan Basyir president director BRI said the bank had raise its credit growth target from 24% to 27%.

In 2007, BRI total credit had reach IDR 113.85 trillion and the target for 2008 has been set at IDR 144.6 trillion.

For first semester 2008, BRI credit service grew high and until May, BRI were the biggest creditor in Indonesia through its People’s Business Credit (KUR) service.

Further, Sofyan also mention some credit service such as for infrastructure about IDR 1.7 trillion and IDR 1.8 trillion and agriculture expected to be channeled in the second semester 2008.

51% of Multifinance Credit derived from Local Banks

51% of Multifinance Credit derived from Local Banks

IDR 44.57 trillion domestic banks loan allocated to multifinance equal with 51% from total credit of multifinance company in May 2008 with amount IDR 87.53 trillion.

Bank Indonesia data shows local banks loan grow 48,41% compared with same period last year which is IDR 30,03 trillion, meanwhile foreign banks credit had growth on 19,35% equal with IDR 31.69 trillion.

Beside, multifinance credit derived from non bank source had reach IDR 11.26 trillion or 13,62% increase from IDR 9.91 trillion.

For 1st semester 2008, some multifinance companies had raise its credit from local banks such as PT Buana Finance, PT Tunas Finance and PT Astra Sedaya Finance.

Eko Santoso Budianto PT Buana Finance president director said the company had secure IDR 500 billion credit facility from NISP bank and IDR 50 billion from Lippo Bank.

The company also plan to secure IDR 100 billion credit from two others local banks and will be use to financing purpose which targeted at IDR 1.6 trillion untill the end of 2008.

The financing composition are 70% for heavy equipment and 30% for consumer segment.

Halim Gunadi PT Tunas Finance president director said the company had secure IDR 450 billion credit from PT Bank Negara Indonesia (BNI) to support its IDR 2.4 trillion financing business.

PT Tunas early this year had secure credit from Bukopin bank and plan to secure another credit from BCA bank.

Meanwhile, Benny Tjoeng PT Astra Finance president director said the company had secure IDR 1 trillion credit from BNI in joint financing scheme.

For PT Astra Finance, credit from local banks still a prime sources to fulfill its IDR 12.5 trillion financing need.

Moreover, after subprime mortgage crisis in US, some banks abroad had impose premium interest rate for borrower from developing countries and its also affect Indonesian borrower.

Korean Culinary Promo at Intercontinental Midplaza Hotel Jakarta

Korean Culinary Promo at Intercontinental Midplaza Hotel Jakarta

Most people think Korean Food are spicy but in promo at Intercontinental MidPlaza Hotel the dishes that serve are traditional and favorite korean food but also may enjoy by the foreigner.

From July 14th to August 10th 2008, Java restaurant of Intercontinental Midplaza Hotel Jakarta presenting Korean food promo which prepared by two visiting Chefs, Kim In Sik and Kim Jae Yong from Intercontinental Seoul Hotel that will recreate the regional recipes of Korean Culinary.

During the promo, the Chefs will serve 35 dishes which consist of various kimchi such as Cucumber, White Cabbage, Spring Onion and Red.

For the main course are galbi (grilled beef ribs), bulgogi (thin slices of sirloin), Abalone Porridge and Japchae ( cellophane noodles). and for desserts are subak hwachae (watermelon punch), maejagwa (thin cookies) and yakgwa (fried honey cake).

Korean Culinary Promo at Java Restaurant on buffet style at Rp 158.000++ per person and will serve at Lunch from 11.30 am to 3 pm and for Dinner from 6 pm to 11 pm which open from monday to saturday with seat capacity for 150 person.

Java Restaurant,
2nd Floor Lobby Lounge
Hotel Intercontinental MidPlaza Jakarta
Jl Jend Sudirman Kav 10-11
Phone : (021) 251-0888

Indonesia May Set 2,5% Biofuel Mandatory use for Industry

Indonesia May Set 2,5% Biofuel Mandatory use  for Industry

Government will implement policy to use 2,5% biofuel consumption as mandatory for industry sector.

The biofuel price now on drafting process and later would be a reference for biofuel consumer. the price will be refer to MOPS (Mid Oil Platt of Singapore).

Alhilal Hamdi chief executive of Indonesia’s national team on biofuels development (07/09) said the mandatory use of biofuel is a strategy to accustom all industry sector to use biofuel and reduce the use of fossil fuel.

Hamdi also mention that price which could be implemented for biofuel will based on MOPS.

In order to implement this policy, the national team had mapping some sectors such as transportation and industry.

The implementation of biofuel mandatory will be released in the form of energy and mineral resources minister regulation.

Directorate General Electricity and energy utilization also prepare government regulation draft on new and renewable energy that targeted will be complete in August 2008.

But different with minister regulation draft, on government regulation draft biofuel mandatory use are 5%, higher than minister regulation figure.

Evita Herawati Legowo secretary of national team on biofuels development said Minister regulation just regulate based on present condition, meanwhile government regulation based on long term basis.

Alhilal also gave a comment that the plan to mix biofuel to fossil fuel is quite slow, caused by various issues especially the basic material, which related with price and productivity.

At the moment, CPO price higher compare with crude oil price and the result is CPO based biofuel not competitive.

Besides, eventhough bioethanol economic of scale had equal with subsidied premium price, the development of bioethanol biofuel will face a problems such as low growth of bioethanol petrol station.

Other problem are rivalvry between the use for basic material and food.

Even at last D-8 meeting in Kuala Lumpur, President Yudhoyono said the phenomenon of fertile soil diversion for food into biofuel basic material like the situation already happen in develop countries is not good idea and will aggravate the global food crisis.

Kurtubi Director of Center for Petroleum and Energy Studies said government should give more attention on biofuel development from non food commodites.

Jathropa-based biofuel and others non food basic material should be promoted than CPO-based biofuel.

For CPO, not only expensive but its also will threaten food security.

Kurtubi gave a suggestion for government to sell biofuel with MOPS price as reference and to make it as buying price standard from Biofuel producer.

From Industry representative gave a comment on governemnet plan, Kustardjono Prodjolalito Indonesian Synthetic Fiber Makers Association (APSyFI) said industrialists will use biofuel as long as government could guarantee the supply and its infrastructure.

Kustardjono remind the government that the project is not a guinea pig and make a classification for industry that imposed the mandatory policy.

At this moment, Industry searching for cheap and environmental friendly alternative energy along with increase price of oil fuel and coal.
And the diversion of energy consumprion surely need a big investment.

From 13 member of Apsyfi, four had diversion to coal-based electric plant and the rest had use Diesel genset and PLN (State Electricity company).

State Budget 2009 will Adopt USD 140 per barrel oil price assumption

State Budget 2009 will Adopt USD 140 per barrel oil price assumption

Indonesian government now more realistic in facing global oil price increase and have plan to change indonesia crude price (ICP) average price in order to secure 2009 state budget.

In 2009 state budget draft, government will use ICP average price assumption at USD 140 per barrel.

Finance Minister Sri Mulyani said after we saw the tendency of present oil price, USD 120 per barrel ICP average price for state budget 2009 cannot work.

If still keep with USD 120 per barrel price assumption, energy subsidy for 2009 could increase to IDR 296 trillion.

Government also plan to prepare fiscal risk reserve to anticipate the oil price increase reach USD 150-160 per barrel.

Beside, ICP price assumption increase also bring the pressure to economic growth getting harder. But government will keep the growth on 6,2%.

The pressure to 2009 state budget also getting harder which caused by the volume increase of subsidied oil fuel consumption in 2009.

For subsidied oil fuel consumption assumption in 2009 state budget had allocate 42,8 million kilolitre.

Disparity or oil fuel selling price difference between domestic and international also will affect the consumption. at this moment industry had to pay oil fuel with international price and there’s a possibility that industry will buy subsidied oil fuel.

Anggito Abimanyu, Chief of fiscal policy agency Ministry of Finance said the government had prepare the scenario for appropriate ICP price.

Anggito see USD 120 per barrel ICP price not suit with recent situation and USD 140 per barrel more close to reality.

Bambang Soesatyo chief for fiscal and monetary of Indonesian Chamber of Commerce (Kadin) had forecast 2008 state budget is not appropriate.

All macro assumption in 2008 state budget had miss the target and exceed the forecast limit.

The simple example is present oil price which had pass USD 140 per barrel, while 2008 state budget had decide USD 95 per barrel with additional reserve capital USD 110 per barrel, and IDR 8.25 trillion fiscal risk additional reserve capital of 2008 state budget had been complete absorp.

Indosat Tender Offer should be Proportional

Indosat Tender Offer should be Proportional

Qatar Telecom tender offer on 8% Indosat shares which own by public will be carry out proportionally to comply with maximum limit of foreign ownership which is 49%.

Chairman of Capital Market Supervisory Agency and Financial Institutions: Ahmad Fuad Rahmany (07/07) said if  information and communication minister gave 49% share limit for foreign ownership, so Qtel mandatory only 49% and will be limited to have 8% tender offer.

M Noor Rachman Chief Bureau for company financial assesment in sector service said tender offer should be proporsional and in line with the limitation.

The limitation not follow the stock exchange new rules which released in June 30, 2008 but follow the presidential decree on foreign ownership limitation rules which is the level more higher then Bapepam-LK rules.

Based on Bapepam-LK rule, tender offer is mandatory for public company shares take over or 50% share acquisition or get control of power, directly or indirectly on management and policy of subject company.

But, Qtel tender offer limitation finally limited by presidential decree on foreign ownership limitation rules.

Foreign ownership limitation in fixed telecommunication network maximum 49% and foreign ownership limitation for cellular network maximum 65%.

Related with the limitation, Communication and information Minister Mohammad Nuh had decide Qtel ownership limitation in Indosat only 49% and Minister Nuh said government not gave any privilege (grandfather clause) to Qtel.

Nuh further mention that government objectives to impose ownership limitation to Qtel as a strategy to give a space for domestic telecommunication industry growth.

Qtel cannot receive Grandfather clause because Indosat shares take over done after the release of negative investment list.

Grandfather clause is an exception which could make old rules still imposed for some situation or for some cases which had exist when new rules will be implement to all situation in the future.

Grandfather clause only imposed for some cases such as PT Excelcomindo Pratama Tbk, PT Hutchison CP Telecom Indonesia, PT Natrindo Telepon Seluler, which is 70%-90% of shares owned by foreign investor before the publish of investment negative list in 2007.

June’s 2008 Car Sales Increase 36,21%

June’s 2008 Car Sales Increase 36,21%

Car’s sales realisation in June 2008 had reach 53.700 unit, which caused by consumer high demand as an anticipation for price increase.

Based on Gaikindo data, four-wheel automotive vehicle in June had book the highest figure since January 2008.

Car sales growth in June had reach 36,21% compare with the same period in 2007 which is 39.424 unit.

Accumulatively, car sales in January-June 2008 period had reach 291.641 unit or increase 47,8% compare with the same period in 2007.

Amelia Tjandra, PT Astra Daihatsu Motor Marketing Director last week said 2,46% inflation rate in June as an impact of subsidied fuel price increase not affect the car sales.

High inflation should made less demand but it not happen to car sales.

Amelia had forecast the highest car sales as an anticipation by consumer toward the increase price of basic material that will make car manufacturer increase their car product.

But Amelia also said the possibility of wholesales demand in June as a move by dealer which stock the supply before the price increase.