Daily Business Briefing – Sept. 20

JAKARTA (TheInsiderStories) – Good morning. We offer you several relevant news that might help your business decisions today :

PT Tower Bersama Infrastructure Tbk (IDX: TBIG) announces that it has closed its continuous Rupiah Bond II Phase III Year 2017 with a total issuance of Rp700 billion at a fixed interest rate of 8,40 percent for a tenor of 3 years. The Sept 2020 Rupiah Notes will constitute senior unsecured obligations of TBIG. The use of net proceeds will be to
partially repay the Company’s existing financial liabilities, in particular, Facility B of our Credit Facilities. The Notes obtained a local AA rating from Fitch Indonesia and will be listed on the Indonesian Stock Exchange today.
SOEs bank won’t charge fees on electronic money top-up  

The Association of State-Owned Banks that consist of PT Bank Rakyat Indonesia (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), and PT Bank Tabungan Negara Tbk (IDX: BBTN), has decided will not charge additional fees on  their customers’s e-money cards, following protests despite the central bank has issued the regulation to charge top-up fees to the customers. Meanwhile, PT Bank Central Asia Tbk. (IDX: BBCA) has yet decided whether to charge top-up fees to their customers or not.

PLN has signed financial close of 14,000 MW power plant

State-owned electricity company PT Perusahaan Listrik Negara (PLN) said there are 14,000 megawatts (MW) of 35,000 MW power plant that has completed of financial closing with independent power producer (IPP) until September 2017. Currently, PLN still negotiating another 12,000 MW in financial closing stage with IPP and expected 6,000 MW will be completed by the end of the year. Thus, PLN expected sign financial close of 20,000 MW with IPP at the end of 2017 and will be on-stream between 2018 until 2020. (Kontan)

The new tax regulation to tracing disobedient taxpayer

The government of Indonesia has issued new regulations aimed at tracing and taxing the wealth of taxpayers who were not pardoned in the nine-month tax amnesty that ended in March 2017 due to just 972,000 taxpayers joined the amnesty program and declared assets worth a total of 4,881 trillion rupiah (S$496.3 billion). The regulation calls for all assets that were not reported or were misreported in the amnesty program, and which were obtained between Jan 1, 1985 and Dec 31, 2015, to be treated as untaxed income.

Singapore Keppel Land buys premium land area in Jakarta

Singapore’s property player Keppel Land has bought a prime site in Jakarta’s central business district, on which it intends to build a luxury apartment tower. Keppel Land said that it entered into the conditional sale and purchase agreement, through its wholly owned subsidiary PT Sukses Manis Tangguh, with Indonesia’s PT Bank Central Asia Tbk (IDX: BBCA). It will acquire the site – which is adjacent to Keppel Land’s commercial development, International Financial Centre Jakarta – for a total consideration of Rp586 billion. Keppel Land said that it plans to develop a premium high-rise tower on the site, which could yield about 400 luxury apartments. The total development cost is estimated to be S$170 million. (Business Times)

Garuda Delays Plan to Purchase Planes

State-owned flag carrier PT Garuda Indonesia Tbk (IDX: GIAA) has informed plane manufacturers of a delay in its plan to purchase planes this year and 2018. President Director Pahala Mansury said the delay is necessary to cut down on the operational costs that have caused the company to suffer losses this year. Initially, the airline planned to receive a single plane late this year and 10 more planes in 2018. After delaying the purchase, Pahala added that his company would try to extend its leasing contracts on several planes. (The Jakarta Post).

Indonesia startups investment hit US$3 billion in 2017

Investor confidence in Indonesia’s startup market is rising with investment growing 68 times over the past five years to reach US$1.4 billion in 2016 and jumping to US$3 billion in the first eight months of 2017. In 2017, 95 percent of the total investment value in Indonesian startups came from China, with only 6 percent coming from other investors. China’s Tencent invested in US$1.2 billion in Go-Jek, Alibaba Group invested US$1.1 billion in Tokopedia and JD.com invested US$500 million in Traveloka. (Bisnis Indonesia)

Corporate bond issuance expected to surpasses Rp120 trillion target

Pemeringkat Efek Indonesia (Pefindo) estimated that corporate bond issuance could surpass the initial target of Rp120 trillion in this year due to the confidence in market bond still high following central bank decided to cut the 7-Day Reverse Repo Rate. Based on data from Kustodian Sentral Efek Indonesia (KSEI), the total corporate bond issuance per August 2017 amounted to Rp109.73 trillion while Pefindo has received mandate from companies to issue corporate bond reach Rp43.6 trillion that consists of medium-term notes (MTN) of Rp13.8 trillion, asset-backed securities of Rp10 trillion, and bond of Rp9,3 trillion. (Kontan)