Daily Business Briefing – Oct. 24

JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:

PP Presisi Seeks Rp2.3 trillion from IPO in Oct

Construction equipment rental company, PT PP Presisi is looking to raise Rp2.3 trillion from the sale of 4.23 billion shares, or 35 per cent of its total, in an Initial Public Offering at the end of this month. Aside from domestic investors, PP Presisi will also hold roadshows for investors in Kuala Lumpur, Singapore and Hong Kong. The company, which is owned by state builder PT PP (IDX:PTPP) will use 70 per cent of the proceeds for working capital and the remaining 30 per cent to finish ongoing work.

Qatar Invited to Develop Mandalika

The Indonesian government has invited the Qatari government to participate in the development of the Mandalika Special Economic Zone (SEZ) in West Nusa Tenggara. The Qataris have indicated they are interested in improving transportation access to the SEZ, and are also ready to build a halal resort there.

Gov’t Starts Selection New DG of Taxation

The Finance Ministry has commenced the selection process for the position of Director General (DG) of Taxation, replacing Ken Dwijugiasteadi, who will retire in December. Finance Ministry Secretary General Hadiyanto has indicated there are two mechanisms available to replace the outgoing high-ranking official: open bidding for the post or rotating one of the top echelons at the Ministry to helm the taxation department.

Indonesia to buy LNG from Qatar

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has indicated Indonesia will buy liquefied natural gas (LNG) from Qatar at a price of US$7.16 per million British thermal units (MMBTU). Energy and Mineral Resources Minister Ignasius Jonan said his Ministry will allow the import of LNG from Qatar if the price is lower than that produced in Indonesia, as it is planned to fuel power plants in North Sumatra jointly developed by state-owned electricity firm PLN and a state-owned Qatari company.

Government Obtains Rp8.9 trillion from Retail Bond issuance

The Finance Ministry has raised Rp8.9 trillion from the sale of three-year retail bond ORI014, which carry a coupon of 5.85 per cent. The proceeds of the retail bond sales, intended to finance infrastructure, education, and health sectors, came in far below the targeted Rp20 trillion.

BBTN Posts Rp2 Trillion Profit in Third Quarter

State-owned lender Bank Tabungan Negara (IDX: BBTN) saw its net profit rise 21 per cent to Rp 2 trillion between Jan-Sept, compared to the Rp 1.85 trillion booked over the same period the previous year. Its net interest income surged by 16.95 per cent year-on-year (YoY) to Rp6.54 trillion.