JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:
Indika Powers Up for Dollar Return
Indonesian power producer Indika energy launched a dollar bond on Thursday, turning investors more than a month after a roadshow for the proposed transaction. In late September, Indika announced that Citi and Standard Chartered would be leading its new 144A/ Reg S trade as joint bookrunners. It kicked off a global roadshow at the same time.
PLN Secures Rp16.3 Trillion Loan
State-owned electricity company PLN has obtained Rp 16.3 trillion (US$1.20 billion) of syndicated loan from banks and non-banks. It was a scheme that combined conventional and sharia financing – the conventional scheme contributed Rp 12 trillion and the sharia scheme contributed Rp 4.3 trillion – with a 10-year term. The financing institutions involved in the syndicated loan include Maybank Indonesia, Bank Mandiri Syariah, Sarana Multi Infrastruktur, BNI Syariah and Bank Permata Syariah.
Adhi Karya Seeks US$1.62 Billion Loan To Complete LRT Construction
State-owned construction company Adhi Karya seeking Rp 22 trillion ($1.62 billion funding to finish the light rail transit project in the greater Jakarta area. Several banks, including Bank Central Asia, Indonesia’s largest bank by market capitalization, and CIMB Niaga, the fifth largest, are lining up to offer loans to Adhi Karya. However, to introduce a new financing scheme the government has to first revise the company’s track concession.
The government, Adhi and the lenders will need to agree on capital expenditure, concessions and subsidies for LRT tickets. The government now estimates the total cost of the LRT project will reach Rp 27 trillion, Adhi Karya and state railway operator Kereta Api Indonesia will team up to provide Rp 8 trillion, while the remainder will come from a syndicated bank loan.
Central Bank Welcomes Proposed Powell Nomination
Bank Indonesia (BI) Governor Agus Martowardojo expressed hope that the United States Federal Reserve could continue its policy and the good communication that it currently has after the nomination of its governor, Jerome Powell, as the new chairman. “We will see who will be appointed [by US President Donald Trump] but we welcome Powell,” he said on Thursday. “Policies implemented under [Federal chairwoman Janet] Yellen will continue [under Powell]. This is good for both the US and global economies.”
Thailand Beats Indonesia on EODB Improvement
Among ASEAN nations, Thailand and Indonesia were the ones that jumped the most in the new Ease of Doing Business 2018 ranking by the World Bank, which was released on October 31. Thailand ranked 26th in the list, surging 20 ranks over last year’s rating, beating its peers in ASEAN and even overtaking Japan, which held steady in 34th place. Indonesia improved 19 notches to 72nd, while Brunei moved 16 ranks to 556th and Vietnam 14 ranks to 68th. (*)