JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:
Mitra Investindo Acquires 23.44 Stake of Benakat Oil
Construction and energy company PT Mitra Investindo Tbk (IDX: MITI) finally sealed approval from stakeholders on Oct. 23 to purchase a 23.44 per cent stake in PT Benakat Oil, a unit of PT Benakat Integra Tbk (BIPI) from PT Pratama Media Abadi, for Rp71.37 billion (US$5.45 million). After the deal, the composition of Benakat Oil shareholders will be comprised of Mitra Investindo, Benakat Integra and Goldwater Indonesia Inc. with 23.44 per cent, 55.05 per cent and 21.51 per cent of stock ownership, respectively. Mitra Investindo and Goldwater Indonesia are owned by Singapore-based Interra Resources Ltd. Interra indirectly owns 44.95 per cent of the shares of Benakat Oil. Note that Pratama Media Abadi is affiliated with Recapital Group, where Jakarta Vice Governor Sandiaga Uno is a Co-founder.
Bank Mandiri Booked Rp15.07 Trillion over 9 Months
PT Bank Mandiri Tbk IDX: BMRI), the largest lender by assets, has reported a 25 per cent jump in net income for the first nine months of this year, at Rp15.07 trillion, compared with Rp12.01 trillion over the same period last year. Chief Executive Kartika Wirjoatmodjo attributed the growth in profit to increased loans and cost efficiencies, among others. The Bank’s loans rose 9.8 per cent, from Rp625.1 trillion to Rp686.2 trillion.
Indosat to Offer Rp2.72 Trillion Bond in November
Telecommunication Operator PT Indosat Ooredoo Tbk (IDX: ISAT) intends to offer bonds up to a maximum of Rp2.72 trillion in November 2017. The instrument will be offered in a total of five series, including ‘A’, valued at Rp1.02 trillion, ‘B’ at Rp673 billion, ‘C’ at Rp498 billion, ‘D’ at Rp21 billion and ‘E’ at Rp511 billion, with tenors of 370 days, 3 years, 5 years, 7 years, and 10 years, respectively. The interest coupons are set at 6.15 per cent, 7.45 per cent, 7.65 per cent, 7.95 per cent and 8.95 per cent for each respective series. Fitch Rating Indonesia has bestowed ‘AAA’ ratings on these bonds. Similarly, Credit Rating Agency (Pefindo) assigned ‘idAAA’ ratings. The Company has indicated the proceeds will be used mainly (62.3 per cent) for refinancing, and the remainder for paying down fees for radio frequency spectra rights of use.
Pelindo II Posts 8.4 Per cent Profit Jump in 3Q
State-owned port operator PT Pelabuhan Indonesia (Pelindo) II recorded an 8.4 per cent increase in profits, to Rp1.55 trillion (US$112.3 million) in third quarter (3Q) of 2017, up from Rp1.43 trillion in the same period last year. The company’s revenue also grew by 19.6 per cent to Rp7.62 trillion, compared to 6.37 trillion last year. The improved performance was boosted by a 21.7 per cent increase in ship traffic at the ports under its management, as well as contribution of container and non-container traffic, that increased by 10.8 per cent and 3.1 per cent, respectively.
US Affirms Antidumping Duty on Indonesian biodiesel
U.S. Secretary of Commerce Wilbur Ross has confirmed the preliminary determination in the antidumping duty investigation on biodiesel fuel from Indonesia, finding that exporters sold this product in the U.S at dumping margins of 54.36 per cent to 50.71 per cent. The Commerce Department will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of biodiesel from Indonesia, based on these preliminary rates. The petitioner is the National Biodiesel Fair Trade Coalition, an ad hoc association composed of the National Biodiesel Board and 15 domestic producers of biodiesel. In 2016, imports of biodiesel from Indonesia were valued at an estimated US$268 million.