Daily Business Briefing – Sept. 28

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

Indonesia Rises in the Global Competitiveness Index

Indonesia has elevated its standing to 36th place, up from 41st last year in the World Economic Forum latest Global Competitiveness Index in acknowledgement of the country’s large market, robust macroeconomic environment and notable efforts to improve business sophistication over the past year.

Indonesia Government to Offer ORI014 With Coupon 5.85%
The Indonesia government plans to issue the retail bond, ORI014 with coupon 5.85 percent yield per year–shomewhat lower than the previous bond, the ORI013 coupon of 6.6 percent in line with declining of BI 7-Day Reverse Repo Rate at level 4.25 percent.

Minna Padi Acquires 51% Share of Bank Muamalat 
Local securities house PT Minna Padi Investama Sekuritas (IDX: PADI) has acknowledged that it plans to acquire a major stake in Islamic lender Bank Muamalat Indonesia that cost Rp4.5 trillion.
Astra Will Pay Interim Dividend
PT Astra International Tbk., (IDX: ASII) has declared an interim dividend of Rp55 per share for the full-year 2017, payable on Oct 3, 2017. In the first half of this year, ASII posted net profit Rp231 per share.
Moody’s Review for Upgrade of Indika’s Proposed Notes After Acquisition

Moody’s Investors Service has assigned a B2 rating to the proposed backed senior secured notes to be issued by PT Indika Energy Tbk (IDX: INDY). The proposed notes are being reviewed for a potential upgrade on the back of its announced acquisition of an additional 45 percent stake in PT Kideco Jaya Agung, Indonesia’s third-largest coal producer.

Palu Special Economic Zone Comes Online
Palu Special Economic Zone (SEZ) in Central Sulawesi officially commenced operation, becoming the first in the eastern part of Indonesia to do so. Currently, seven investors have realized their investment in the Palu SEZ, with a total investment plan of some Rp145 billion in a various business sector.

Former Allianz Indonesia Executives Charge for Rejecting Claims
The Jakarta Police have charged two former executives of PT Asuransi Allianz Life Indonesia, a local unit of Allianz, the Munich-based insurance giant, with allegedly breaking the country’s consumer protection law. The police charged Joachim Wessling, a former president director of Allianz Indonesia, and Yuliana Firmansyah, a former claim manager at the company, with allegedly denying clients reimbursement for health insurance claims.

PLN Clarification on Finance Minister Concern

State-owned electricity company PT Perusahaan Listrik Negara (PLN) stated has done “prudent” corporate financial management through asset revaluation, increasing existing productive asset, good and service as well as operational efficiency, echoes Minister of Finance warning on their financial management, board of director said in official statement. Sri Mulyani Indrawati through written statement concerning five point that should be concerned by the PLN. First, financial performance that has been slip as rising obligation for loan and loan interest. Second, company has lees pace in investing to meet government pledge. Third, based on maturity profile, loan and loan interest is projected to increase in the few upcoming years. Fourth, considering electricity tariff (TTL) as main income of company, electricity PSO tariff cut policy should be done. Fifth, government need to become more realistic on the 35,00 MW electricity mega project regarding company inability to meet investment from operational cash flow due to high mature loan profile.