Daily Business Briefing – Oct. 9

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 (JCI) will keep moving in to positive level, following last week’s foreign reserve data release, said William Surya Wijaya from Indosurya Sekuritas. Today, the Index is estimating move between 5,861 to 5,988. Other economic data like commodity price and current exchange volatility as well as retail sale economic data is believed to give mix effect on JCI movement today. But he assure there is still room for JCI to strengthening.

Indonesian Foreign Reserves Stood at US$129.4 Billion in September

Indonesia’s foreign reserves stood at US$129.4 billion in September 2017, higher than August’s level at $128.8 billion. The increase was primarily attributable to foreign exchange receipts, among other from tax revenues and government oil & gas export proceeds, withdrawal of government foreign loans as well as auction of Bank Indonesia foreign exchange bills. The receipts surpassed the uses of foreign exchange primarily for repayments of government external debt and Bank Indonesia foreign exchange bills matured during the period. The reserve asset adequately covered 8.9 months of imports or 8.6 months of imports and servicing of government external debt repayments, well above the international standards of reserve adequacy at 3 months of imports. Bank Indonesia considers the official reserve assets are able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth.

BI Sees Narrowing Windows for Further Rate Cuts
Indonesia’s central bank (BI) sees a little room for further interest rate cuts, while saying it can turn to other measures in a bid to fire up Southeast Asia’s biggest economy. Subdued inflation has allowed BI to cut its benchmark rate eight times since the beginning of last year, including for a second month in a row in September. But more easing combined with the prospect of higher rates in the US may pose a risk to the currency, which has weakened in the past month. The central bank has been simulating various scenarios in the event of capital inflow, if any. Further cut rate, depends again on the data even though until last week the bank see the situation up until the end of this year or probably next year, the room for cutting the policy rate is not much. It is becoming narrower. Yet they still have some arsenal for policy mix, including liquidity, exchange rate and macro prudential.

Sarana Multigriya Financial Offering Rp1 Trillion Bond
PT Sarana Multigriya Financial (SMF) issuing bonds with total amount of Rp1 trillion. This will come in two tranches. First, series A with value of Rp327 billion offer fixed coupon of 6.25 percent per annum and will mature on Oct. 23, 2018. Secondly, series B with amount of Rp673 billion offer fixed coupon rate of 7.25 percent per year and will mature on Oct. 13, 2020. The debt securities will be distributed electronically on Oct. 13, 2017 and will listed on the Indonesia Stock Exchange on Oct. 16. This sustainable bond stage II is part of the SMF bond offering targeted funds to be collected amounting to Rp12 trillion.

WIKA Sales Rose by 47 Percent in 1H 2017
PT Wijaya Karya Tbk (IDX: WIKA) posted a profit of Rp435.92 billion in first half (1H) of 2017. The profit was supported by WIKA sales in the 1H that reached Rp9.48 trillion or rose 57.19 percent over the same period tin 1H 2016 of Rp6.03 trillion. In 1H, WIKA has recorded a contract worth Rp94.07 trillion or 91.17 percent of this year target Rp103.25 trillion. Acquisition of new contracts was largely derived from the infrastructure sector, building and the property of Rp20.66 trillion, followed by the energy sector and industrial plant at Rp6.45 trillion. While the industrial sector accounted for the achievement of a contract worth Rp3.65 trillion.

Busan Aauto Finance Offers Rp500 Billion Bond
Publicly listed multifinance firm PT Bussan Auto Finance (BAF) will issue for the first time in 20 years bonds worth Rp500 billion that will be used for the firm’s working capital. The bonds will be issued in two series: 370 days tenor with 6.25 percent to 7 percent coupon rates and three years tenor with 7.25 percent to 8 percent coupon rates. The bond received an idAA rating from credit rating agency PT Pemeringkat Efek Indonesia (Pefindo). BAF is planning to receive the effective statement from the Financial Services Authority on Oct. 26. The public offering period is expected between Oct. 30 and 31.The firm engages mainly in new motorcycle financing for the Yamaha brand, which contributes to 90 percent of its total financing. BAF targets to disburse new loans worth Rp 7 trillion by the end of this year.

M Cash IPO to raises Rp 300 Billion
PT M Cash Integrasi (MCI) offers as much as 216.98 million shares or  25 percent of enlarge capital to raise up to Rp300 billion from the initial public offering (IPO). The unit of PT Kresna Investama set the IPO price between Rp 1,300-Rp 1,450 per share. The underwriters for the IPO PT Kresna Sekuritas and PT Trimegah Sekuritas Indonesia. MCI is the digital shop for mobile SIM (Subscriber Identity Module) and e-money.  This year, the company targeting to have 1,000 shop and  become 10,000 in 2020,  Jahja Suryandy, Managing Director MCI, sain until April has pockete net cash Rp 45 billion.