Daily Briefs – Sept. 14

JAKARTA (TheInsiderStories) – Good morning. we would like to share news features that you might find useful for your business decisions today.

Indonesia’s Rank in WEF Global Human Capital Index Improves

Indonesia’s ranking in the World Economic Forum’s 2017 Global Human Capital Index has risen, on the back of progress in education, according to a report published on Wednesday (13/09). Indonesia now ranks 65th out of 130 countries assessed. In 2016 it was 72nd. In the region, Indonesia still lags behind Singapore (11), Malaysia (33) and Vietnam (64). Vietnam has jumped four points upward from 2016. (Jakarta Globe).

Jakarta Reclamation Finalization

Minister Coordinator of Maritime Affairs Luhut Panjaitan has confirmed the reclamation of islands C and D in the North Bay of Jakarta will continue, while the reclamation of island G is being finalized. According to Luhut, with the reclamation, the Provincial Government of DKI Jakarta will earn Rp 77.8 trillion. This fund is used to build a giant embankment in North Jakarta to anticipate further subsidence of Jakarta, which has seen unprecedented flooding in recent years.

Indian imposes Antidumping Duties on Indonesia, Russia, Georgia and Iran

The Indian government has imposed an antidumping duty of up to US$60.35 per ton for five years on a chemical used in fertilizer industry manufactured by four countries — Russia, Indonesia, Georgia and Iran. The move will purportedly help guard domestic players from below-cost imports of ‘ammonium nitrate’ from these countries. The Finance Ministry imposed the duty after a Directorate General of Antidumping and Allied Duties (DGAD)  finding concluded that the product has been exported to India from these four countries below its normal value, thus defined as ‘dumping’. Currently, the import duty in India ranges between$11.42 to $60.35. (Economic Times)

TPG, Boy Thohir rumors to sell 43% BFI Finance Shares

TPG Capital and Trinugraha Capital (own by Garibadli “Boy” Thohir) reportedly intends to sell its share ownership in PT BFI Finance Indonesia (IDX: BFIN). Another shareholder, Trinugraha Garuda Indonesia, has appointed an advisor for the 43 percent share sale action of TPG Capital. Shares of the multifinance provider have soared 86 percent over the past year. The transaction value is estimated to reach Rp 3.8 trillion, as the action attracted the attention of a number of potential investors from Japan and South Korea. TPG Capital entered BFI Finance in 2011 under a consortium led by Boy Thohir. The transaction value of share purchase is Rp 1.44 trillion (US$168 million) at that time.

Chandra Asri Raises Rp5.3 Trillion from Rights Issue 

PT Chandra Asri Petrochemical Tbk (IDX: TPIA) has raised Rp 5.03 trillion (US$378 million) from a limited offering, the company announced in a press statement on Wednesday (13/9). TPIA’s President Director Erwin Ciputra said the rights issue process was completed on Sept. 8. Following the action, the number of TPIA shares in circulation increased by 279.74 million to 3.57 billion, with the composition of public stock at 9.06 percent. With this result, TPIA has fulfilled the requirement of free float of at least 7.5 percent imposed by the Indonesia Stock Exchange. Management will use the proceeds to increase production capacity and product diversification. In this corporate action, the main shareholders of PT Barito Pacific Tbk, Marigold Resources Pte Ltd and Prajogo Pangestu did not exercise their rights. Meanwhile, SCG Chemicals Co. Ltd exercised all rights.

Mitra Keluarga Shares Fallen 20% 

MIKA’s share price has fallen by more than 20 percent following the widespread report of the failure of the company to save the life of a baby patient. According to Robertus Yanuar Hardy, Head of Research Analyst of Reliance Securities, negative sentiment will continue to haunt MIKA’s shares. MIKA has 12 hospitals with a capacity of 2000+ beds, and has been operating for more than 25 years; it has been listed on the IDX since March 2015. It is currently in the process of constructing two more hospitals, in Tangerang and Bintaro, each targeting completion in the first and third quarters of 2018.

Gold Price drops in Four Days of Trading 

The price of gold has declined four days in a row. Today at 7:30 pm, the price of gold for December 2017 delivery on the Commodity Exchange fell 0.13 percent to a level of US$1,326.30 per troy ounce, against the previous day’s position. In four days of decline, the price of gold has slid 1.84 percent, likely caused by the easing of geopolitical temperatures and the strengthening of the United States dollar exchange rate. The US dollar index is getting away from lows of around 91. This morning, the dollar index is moving at 92.38. Last week, the price of gold raced on the fear of North Korea’s hydrogen bomb. Earlier in the week, the UN Security Council signed a new sanction for North Korea. This is one factor that caused gold prices to go slack. On the other hand, US producer prices rose in August. Today, the US will announce its inflation figures, which will determine the direction of coming US interest rates.