JAKARTA (TheInsiderStories) – Good morning; here we provide several pieces of important news that might help your business decisions today:
JCI To Move Between 5,861-5,988
Jakarta Composite Index currently keeps moving to higher levels of consolidation, while the Indonesian market continues to enjoy a capital inflow. Every day a new record is set. However, the market is still awaiting another major capital inflow to re-boost JCI into a higher orbit. Data on Consumer Confidence Index reveals a mixed effect on JCI movement today. There is still room for JCI to strengthen, according to Indosurya Technical Analysis.
Pelita Samudera Shipping To perform IPO in 2H
PT Pelita Samudera Shipping, subsidiaries of IMC Industrial Group, did a mini exposure yesterday, preparing their IPO for later this year, around November. Company will use June financial book and has appointed BCA Sekuritas as underwriter for the IPO. Proceeds will be directed as with 20 percent for working capital. Company’s asset currently stands at US$70 million, including 35 logistic ships with 20,000 Dwt capacity.
Astra Sedaya Finance Offers Rp1.8 Trillion Bond
PT Astra Sedaya Finance has done the initial process for bond book building worth Rp1.8 trillion, targeted to be issued in November 2017. Company will decide to complete their sustainable public offering (PUB) III with total value of Rp10 trillion. This bond issuance will be their fourth issuance. According to a publication from Indo Premier Sekuritas, their bond will be offered in three tranches. Seri A with indicative yield 5.9%-6.4% matured in I year; Seri B with indicated rate of 7%-7.5% maturing in 3 years and seri C with indicated rate of 7.25%-7.75% maturing in 5 years. Company will not use the funds for refinancing, but for working capital needs.
Fitch: sweet spot for world economy won’t last beyond 2018
The global economy has improved markedly this year and is on course to record its fastest expansion since 2010, but the current favorable mix of strong growth and highly-accommodative macro policies could be as good as it gets, says Fitch Ratings in its latest Global Economic Outlook (GEO). Fitch forecasts imply something of a ‘sweet spot’ for the global economy in 2017 and 2018 with above-trend growth and still highly accommodative global monetary policies. However, this is not a pattern we expect to persist into 2019 and beyond, as output gaps close in advanced economies and monetary policy support is withdrawn,” Brian Coulton, Fitch’s Chief Economist warned.
President Widodo promotes coffee, chocolate, coconut and spices
President Joko Widodo has urged business players to look for opportunities to benefit from the increasing demand for ‘soft commodities’ offered by lifestyle businesses. This demand is the product of the emerging middle classes in China, India and African and Latin American countries, the President said. Jokowi said that the hundreds of millions – if not billions – of low-income people that moved up to middle-income status would demand higher-quality products and unique lifestyle products. Citing an example, Jokowi said that although the worldwide demand for coffee increased by 20 percent, Indonesia was slow to increase its coffee production and improve its coffee quality because of poor educational standards.
Rp 16 Trillion Additional Revenues Target Approved
Budget Committee of the House of Representatives approved revenue target of 2018’s State Budget Plan at Rp1,894.7 trillion ($140.6 billion), up Rp16.3 trillion from Rp1,878.4 trillion initial proposal. Oil & gas income tax rose Rp2.2 trillion from Rp35.9 trillion to Rp38.1 trillion, following assumption change on exchange rates and cost recovery. In addition, non-oil & gas income tax including VAT/ LGST, property taxes, and other taxes rose Rp6.5 trillion to Rp1,385.9 trillion, mainly from strong VAT revenue outlook. Also, non-tax revenues rose Rp7.6 trillion, from Rp268 trillion to Rp275.4 trillion, supported by oil and gas, that rose Rp3.2 trillion following cost recovery assumption change, non-oil & gas rose Rp1.2 trillion because of extra effort, State-owned enterprise dividend target rose Rp1 trillion, as well as other non-tax revenues that rose Rp1.8 trillion.
Fitch: Indonesia’s Spectrum Auction to Accelerate Telecom Capex
(Fitch) Indonesia’s telecom capex is set to increase in 2018, as operators accelerate network expansion with more spectrum availability, says Fitch Ratings. On 29 September 2017 the country’s Ministry of Communications and Information Technology finally announced details of the auction for 2100MHz and 2300MHz spectrum, following numerous delays. As expected, the regulator will auction off two 5MHz blocks of 2100MHz, but will extend the 2300MHz spectrum to a block of 30MHz (from a 15MHz block previously). We expect aggressive bidding because each participant can win only one block of either frequency. The reserved price for each 5MHz block of 2100MHz was set at IDR297 billion and the 30MHz block of 2300MHz at IDR367 billion.
Indonesian Government To build 10 international Yachts, Cruise Ship Ports
To bring 20 million foreign tourists in 2019, government will build 10 international yachts or cruise ships and construct appropriate ports. Indonesia is aiming to bring in 15 million tourists this year and 20 million tourists in 2019. It is trying to compete with its Southeast Asian neighbors in tourism. Thailand, for example, has seen more than 30 million foreign visitors in recent years. Besides building the ports, Indonesia launched a free-visa policy for 174 countries two years ago. The country recorded 9.25 million foreign visitors in January to August of this year, a 26.8 percent increase YoY.