JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:

Ngurah Rai Airport Still Closed, 445 Flights Canceled 

PT AirNav Indonesia announced Ngurah Rai International Airport shutdown extended until Wed. 29 at 07.00 AM local time. As much 445 flights have been canceled due to the eruption of Mount Agung in Bali and affecting the travel plans of some 89,000 passengers, Director of Air Transportation of the Ministry of Transportation Maria Kristi Endah Murni said on Monday (27/11). Moreover, Mount Agung`s eruption has affected 51 flights, or some 2,900 passengers, at the Lombok International Airport. The Indonesian Volcanology and Geological Disaster Mitigation Center has raised the alert status of Mount Agung from alert level III to IV, the highest, indicating eruption hazards.

Pertamina, Rosneft Will Sign Tuban Project Agreement

State-owned energy producer PT Pertamina and Russian oil producer Rosneft plans to immediately sign a joint venture (JV) for the Grass Root Refinery (GRR) project in Tuban. Pertamina is targeting the establishment of JV for Tuban GRR project end of 2017. Pertamina plans to form a joint venture with Pertamina share of 55 per cent and Rosneft of 45 per cent. On the other hand, Pertamina has also agreed with Rosneft on the issue offtaker of Tuban Refinery. Rosneft is willing to become the offtaker of Tuban refinery. Pertamina is confident the construction of Tuban refinery can be finished in 2024.

Jasamarga Transjawa Go IPO Next Year

PT Jasamarga Transjawa Tol, subsidiary of PT Waskita Toll Road, unit of state-owned construction company PT Waskita Karya Tbk (IDX: WSKT) and state-owned toll road operator PT Jasa Marga Tbk (IDX: JSMR) are set to go public in 2018. Waskita Toll Road president director Herwidiakto said the move would strengthen the capital structure of the new firm and allow for flexible operation. Waskita Toll Road and Jasa Marga are currently focusing on the Trans-Java toll road project with a goal to complete it before next year’s Idul Fitri exodus, which will take place in June.

Chandra Asri To Issue Bonds US$74 Million

PT Chandra Asri Petrochemical Tbk (IDX: TPIA) will issue bonds through a sustainable public offering (PUB) with a maximum target of Rp 1 trillion (US$74.07 million). Head of Investor Relation of Chandra Asri Petrochemical, Harry Tamin, said that the fund will be used to pay off the company’s debts to PT BCA Sekuritas, PT DBS Vickers Sekuritas Indonesia and PT Mandiri Sekuritas. He said, several investors has shown their interest namely Citigroup Global Markets Singapore Pte Ltd, The Hongkong and Shanghai Banking Corporation Limited Singapore Branch.

Coca Cola Start Selling Hot Coffee in Indonesia

The local arm of Australia-listed Coca-Cola Amatil plans to start selling hot coffee in Indonesia by the end of the year, President director Kadir Gunduz said at a media briefing. The company has managed the Coca-Cola brand in Indonesia since 1992. The coffee will initially be produced abroad, but the firm is considering building a local plant for coffee, if the sales volume justifies such a move. The new product will complement six drink categories the firm produces and sells in Indonesia, namely sparkling water, mineral water, juice, tea, dairy products and isotonic drinks. The firm has eight plants in different provinces, producing an average of 2.2 billion packaged drinks a year.

Bank BJB to Raise Rp1.5 Trillion from Bonds Sale

PT Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk (Bank BJB) unveils its plan to raise Rp 1.5 trillion from bonds sale. The offering date is set for Nov. 28-30 followed by listing on the Indonesian Stock Exchange on Dec. 7. The bonds will be divided into three tranches, Series A worth Rp251.7 billion with fixed rate of 7.5 per cent per annum; Series B worth Rp468.3 billion with a coupon rate of 8.15 per cent per annum and series C worth Rp780 billion with fixed rate of 8.85 per cent. The company has appointed BCA Sekuritas, CIMB Sekuritas, RHB Sekuritas Indonesia and Sucor Sekuritas as underwriters of the bonds sale. The bonds sale is the first phase of the planned Rp3.5 trillion bonds issue.

Mora Telematika Indonesia to Issue Rp1 trillion bonds

Internet provider company PT Mora Telematika Indonesia announced its plan to raise Rp1 trillion from bonds sale. The company has appointed Bahana Sekuritas as the underwriter of the bonds issuance. The company has set offering date on Nov. 29-30 followed by listing on the Indonesian Stock Exchange on Dec. 7. Around 90 per cent of the bonds proceeds will be used for investments.

Indonesia to Apply Progressive Royalty Tariff for gold, copper, silver

The Indonesian government is revising the Government Regulation No. 9, 2012 on types and tariffs for non-tax revenues from the Energy and Mineral Resources Ministry. The revision is aimed to apply progressive royalty tariff for certain commodities, namely gold, copper and silver, said Director for Mineral Business at the Energy and Mineral Resources Ministry Bambang Susigit.

FSA Revokes Licenses of 3 Financing Companies

Financial Services Authority (FSA) has revoked the licenses of three financing companies, namely PT Arjuna Finance, PT Maestro Prima Finance and PT Rukun Rahardjo Sedoyo. The authority did not disclose the reasons for the revocation, however, the three have been previously reprimanded.

Meredith Corp to Buy Time Inc. for $2.8 billion

Time Inc. is selling for $2.8 billion to media conglomerate Meredith Corporation, backed by the billionaire Koch brothers known for supporting conservative causes, in an unlikely ending to a saga over the future of CNN’s parent company, AFP reported. Time, which also publishes its eponymous magazine, Fortune, and Sports Illustrated, began looking for a buyer late last year before giving up several months later, while welcoming options. Meredith had expressed interest in buying Time earlier this year then walked away because it could not secure the necessary financing.

Gulf Energy to Invest $4.6B in Southeast Asia

Gulf Energy Development Pcl’s billionaire founder Sarath Ratanavadi plans 150 billion baht ($4.6 billion) of investment in power plants over the next four years after the company’s listing this month, Bloomberg reported. The initial public offering’s proceeds will help fund some of the outlay, with the rest coming from loans, Sarath, the company’s chief executive officer, said. His net worth is about $2.2 billion based on Gulf Energy’s $733 million IPO, according to the Bloomberg Billionaires Index.

Written by Staff Editor, Email: theinsiderstories@gmail.com