Headline
Indonesia revises GDP forecast to 6.2% vs previous 6.8%; gasoline to rise 44% | Regulation data
(Insider Stories) – Indonesia has updated macroeconomic assumptions from the revised 2013 state budget. Among highlights, economic growth (GDP) is now expected to be 6.2%, while inflation is forecast at 7.2%. Both figures are in line with recent TIS forecasts. Another key figure is the assumption for a 44% rise in subsidized gasoline prices to IDR6,500 Full Article
Investment chief Basri is new finance minister | TIS Intelligence
(The Insider Stories) – Indonesian President Susilo Bambang Yudhoyono has selected Muhammad Chatib Basri, the chairman of the Investment Coordinating Board (BKPM), as the country’s new Finance Minister. “Today I have decided that the new finance minister to replace Agus Martowardojo will be Muhammad Chatib Basri,” said Yudhoyono. The selection – flagged in advance by Full Article
Rates on hold, growth slower but resilient; resource sector in focus - Weekly report | Sector data
Main story: Bank Indonesia likely to keep rates on hold; growth to slow but stay resilient Bank Indonesia kept benchmark interest rates steady this week and is likely to remain on hold until later in the year despite an imminent rise in inflation, but despite the central bank’s efforts and an improvement in the balance Full Article
Bank Indonesia keeps rate at 5.75%; may raise Fasbi soon - analysts | Outlook data
(Insider Stories) – Bank Indonesia has kept rates unchanged at a record low 5.75%, its fifteenth consecutive meeting of standing pat, as it seeks to balance weakening economic growth with inflationary pressures. The rate decision was in line with the forecasts of 21 economists polled by Bloomberg News. Dow Jones Newswires said 10 economists it Full Article
Exclusive: Pertamina prices global medium term notes at US$3.25 billion | Company data
(The Insider Stories) - Indonesia’s biggest energy company, state-owned PT Pertamina, will issue US$3.25 billion from its global medium-term note programme (GMTN), slightly higher than its initial target. The order book is $14.4 billion or 5.76 times oversubscribed from the initial issuance target of $3 billion. Pertamina investment director Afdal Bahauddin says the yield on the 10-year Full Article
Sumitomo-BTPN deal highlights opportunities, challenges in Indonesia banks - Weekly report | Sector data
Main story: Japan’s Sumitomo enters the fray with Indonesia banking M&A set to kick off Sumitomo Mitsui Financial is the eventual winner of a race for a stake in niche lender Bank Tabungan Pensiun Nasional, with banking M&A set to kick off Macro roundup: Growth near slowest in three years, but economy resilient Japan’s Sumitomo Full Article
Sumitomo to buy up to 40% of Indonesian bank BTPN for $1.5 billion | Company data
(Insider Stories) – Japan’s Sumitomo Mitsui Financial Group Inc. (SMFG) said it has reached an agreement to acquire up to 40% of Indonesia’s PT Bank Tabungan Pensiunan Nasional (IDX:BTPN) in a deal worth an initial IDR9.2 trillion ($946 million) that could rise to over $1.5 billion. Tokyo-based Sumitomo Mitsui is buying 24.26% of BTPN from TPG Full Article
Indonesia releases first Extractive Industries Transparency Initiative report | Regulation data
(Insider Stories) - Indonesia has taken a significant step forward in introducing transparency into governance of its extractive resources industry, a sector that is the economy’s mainstay and provides a third of the national budget but where a lack of transparency has led to corruption and conflict, with the Coordinating Ministry for Economic Affairs releasing Full Article
Pertamina launches $5 billion global medium term note program | Company data
(Insider Stories) - Indonesian state-owned energy company PT Pertamina has launched a US$5 billion medium-term note program this week, with people close to the deal saying that Barclays Capital, Citigroup and Royal Bank of Scotland are joint lead arrangers and PT Mandiri Sekuritas is a co-arranger. Pertamina is embarking on an ambitious capital expenditure program that will see Full Article
First-quarter growth eases on slowing domestic demand - Danamon | Outlook Data
(Insider Stories) - Indonesia’s economy grew 6.02% in the first quarter of the year, its slowest pace in more than two years and comparing with 6.11% in the fourth quarter of last year, highlighting the impact of inflation on the domestic consumption that is the economy’s major driver. The economics team at Indonesian lender PT Full Article
Indonesia outlook revised to stable from positive - S&P | Outlook data
(Insider Stories) – Ratings agency Standard & Poor’s Ratings Services has revised its outlook for Indonesia to stable from positive while affirming its sovereign credit ratings, as stalled reform momentum and a weaker external profile have diminished the potential for a rating upgrade by the agency in the next 12 months despite a favorable debt profile Full Article
Indonesia records on-month deflation in April - Danamon | Outlook data
(Insider Stories) – Indonesia’s main inflation gauge fell 0.1% in April from the previous month and gained at a more moderate pace from a year earlier as basic food prices reversed recent sharp rises, the Central Statistics Agency (BPS) says in a statement. The on-month decline in the consumer price index was sharper than predicted by Full Article
Tato Miraza is new CEO of Antam, replacing Alwinsyah Lubis | Executive data
(Insider Stories) – Shareholders of state-owned mining company PT Aneka Tambang (IDX:ANTM) have picked Tato Miraza as president director (CEO) to oversee its expansion plans, replacing Alwinsyah Lubis. Miraza joined Antam in 1992 and held several key posts, eventually becoming development director in 2008, a position he held until his promotion this week. Tato aims to Full Article
Weekly report: Finance minister pick has investors uneasy, while investment and inflation improve | Sector data
TIS Weekly: macro edition - Main story: Finance minister’s appointment has investors uneasy about future Investors are yet to react strongly to the surprise appointment of a political figure as acting finance minister, but may become jittery if he remains in the post for too long - Roundup: Asian investors drive surge in Indonesia FDI, Full Article
Indonesia-Korea partnership may be ready October, focuses on industry investment | Sector data
(Insider Stories) — The Indonesia-Korea Comprehensive Economic Partnership Agreement, expected to nearly double the volume of bilateral trade between Indonesia and South Korea to $50 billion in 2015 and increase investments by Korean companies in Indonesia, may be finalized within six months, the industry minister says. Terms of reference have been finalized for the deal, Full Article
