Daily Briefs – Thursday, August 31

JAKARTA (TheInsiderStories) – Good Morning, we present several important news that might help your business decisions today :

Bahana Daily Technical

* Trading range of JCI: 5,850 – 5,900
The JCI today is expected to fluctuate with a limited tendency to strengthen.
A potential rebound after approaching MA20 support. RSI at level 53.8 while MACD is positive divergence. 52 week range: 5,023 – 5,917

* ACES – 1,060 – Spec BUY
May be able to buy as long as it holds above the 1.040 level with the selling level at 1,080 – 1,110. Cut loss if closes below the 1.010 level. Rebound of MA100 support with volume. RSI at level 46.6 while MACD is negative divergence.52 week range: 720 – 1.185

* BBNI – 7,350 – Spec BUY
May be able to buy as long as it stays above the 7,300 level with the selling rate at 7,500 – 7,600. Cut loss if it closes below the 7,200 level. Potential rebound from support MA20 with volume. RSI at level 58.9 while MACD is positive convergence. 52 week range: 4,810 – 7,450

* BJTM – 720 – Spec BUY
May be able to buy as long as it holds above the 700 level with the selling rate at 740 – 770. Cut loss if it closes below the 690 level. Rebound of MA20 support with volume. RSI at 61.3 level while MACD has goldencross chance. 52 week range: 476 – 840

* DILD – 410 – Spec BUY
May be able to buy as long as it holds above the 405 level with the selling level at 415 – 425. Cut loss if it closes below the 400 level. Rebound of MA20 support with volume. RSI at level 51.2 while MACD is flat. 52 week range: 390 – 640

* JSMR – 5.775 – Spec BUY
May be able to buy for the duration above the level of 5,650 with the selling level at 6,000 – 6,100. Cut loss if it closes below the 5,600 level. Rebound of MA20 support with volume. RSI at level 64.9 while MACD is positive convergence. 52 week range: 3,900 – 5,850.

Freeport Grasberg Valuation Fight Looms

The Indonesian Government is prepared to buy the remaining 40.64 percent of PT-Freeport Indonesia shares at a valuation that excludes corporate mineral resources. As of end-2016, they have an estimated 26.9 billion pounds of copper reserves and 25.8 million ounces of gold reserves. In an earlier 9.36 percent share sale, government made a counter-offered of $630 million, considerably lower than Freeport offering of $16.2 billion. In reference to that, government might eventually offer as much as US$ 2.73 billion; it intends to accelerate formation of a consortium involving both the central government and regional administrations, to purchase the stake, and will look for funding sourced from equity, loans, obligations or pension funds. (Investor Daily)

State-Owned Developer to Jump into Transit-Oriented Development Projects

The Government is discussing bringing in private lenders to build the TOD, and are preparing terms of reference for the auction. Meanwhile, 3 stated-owned companies are joining in TOD, with a total estimated investment reaching Rp28 trillion. These include PT Perumnas, that will develop Tanjung Barat south Jakarta train station, as well as Pondok Cina Depok station, with an investment valued at Rp2.3 trillion. Other contenders are PT Wika Gedung, who could develop properties in Bekasi and Serpong Tangerang station, puttiang in Rp1 trillion, and also state-owned construction company PT Adhi Karya, that will develop around 50 hectares of land near LRT stations into commercial areas. The project will connect Ciracas, East Jakarta, and Sentul Bogor to the capital’s downtown district. (Investor Daily)

Japan lauds Indonesia`s strong reaction against N Korean missile firing

The Ambassador of Japan to Indonesia, Masafumi Ishii, Wednesday lauded the prompt and strong response of the Indonesian government against the North Korean missile launched over his country on Tuesday. Hence, His Excellency stated that the Japanese government will continue to maintain communication not only with Indonesia but also with other southeast Asian countries. Japan really appreciates the quick, strong, and tough response from this country following the launch. (Antara News)

Maluku promotes development cooperation in Netherlands

A group of delegates from Maluku hosted a business forum at the Indonesian Embassy in The Hague, the Netherlands, on Tuesday, to promote cooperation opportunities in infrastructure development in the provincial city of Ambon and in the province. delegates also encouraged cooperation with Dutch investors in water management and renewable energy sector. The meeting, called the ‘Maluku Infrastructure Forum’, was attended by several Dutch investors in water management and renewable energy, representatives from the Ministry of Infrastructure and Environment, the Netherlands Water Partnership, and various other related institutions in the country (Antara News)

Tax Cut for SMEs

Government has promised to lower the income tax imposed on the SME sector. Tax income cuts will reduce the financial burden that low-income entrepreneurs must bear. Currently the government sets 0.5 percent final income tax for SMEs, to be reduced to only 0.25 percent. Meanwhile, The Center for Indonesian Taxation Center’s Executive Director Yustinus Prastowo suggested applying tax rates progressively, based on business categories and criteria. Micro businesses, for example, should only pay 0.25 percent, while small and medium businesses can pay up to 1.0 percent. (Kontan)

Indonesia to replant 4.7m hectares of palm oil plantation

The Government of Indonesia has set a replanting plan for 4.7 million hectares of palm oil plantation in the country to boost productivity, an Agriculture Ministry Official said on Tuesday. Director-General for Plantation of Indonesian Agriculture Ministry, Bambang M.M. , disclosed that the decision was made due to aging of the plants and low quality of seeds. Productivity of the plantations is only 2 to 3 tons per hectare, lower than that of 12 tons per hectare in Malaysia, said Bambang. According to the Indonesian Palm Oil Association, the country’s palm oil output declined to 34.5 million tons in 2016 from 35.5 million tons in 2015.

Pertamina, Lukoil Proposed plans to Develop Mansouri Oil Field

Indonesian state-owned energy producer, PT Pertamina and Russian Lukoil proposed plans to develop bangestan reservoir of Mansouri oil field have been reviewed in Supreme Council of Reserves of National Iranian Oil Company.
Mansouri oil field is located in the southwest of Iran and 45 km south-east of Ahwaz. The field was identified using geophysical methods in 1962 and in the same year, by digging well No. 1, its Asmari and Bangestan reservoirs were discovered.

Non-Tax State Revenue Received by Oil and Gas Sector Has Achieved 60 percent

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said, that non-tax state revenues from the oil and gas sector has reached 60 percent from this year targets Rp104 trillion (7.82 billion). This is higher than last year’s Rp 79 trillion. According to him, in one day the oil company’s drilling could reach 803-805 thousand barrels per day, from the target of 815 barrels per day. (DS)