JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:

FSA Revokes Licenses of 8 Rural Banks

Financial Services Authority announced on Wednesday (13/12) that it has revoked the licenses of eight rural banks BPR, namely BPR Eraska Makmur (Jakara), BPR Bina Harta (Semarang), BPR Bumiarthakana Pranamandiri (Semarang), BPR GUnung Bromo (Tegal), BPR Sarko Megah (Jambi), BPR Belitang Artha Gumawang (Palembang), MAI BP Seririt (Bali) and BPR Serasi Modayang (Manado). The FSA summons the owners of the rural banks to report to FSA for the completion of the liquidation process at the latest Jan. 2, 2018.

Dian Swastika Gets US$40 Million Loan from PT SMI

PT Dian Swastika Tbk (IDX: DSSA) obtained a loan facility from PT Sarana Multi Infrastruktur (SMI) US$40 Million. According to Susan Chandra, Corporate Secretary of DSSA on Dec. 13, the loan has a term of seven years with an interest rate based on 1-month LIBOR plus 4.60 per cent per year. The loan will be used to supplement working capital of the subsidiaries of the company that are engaging in the business of supplying electricity.

PP Property Invests Rp500 billion to Build Apartment in Surabaya 

PT PP Property Tbk (IDX: PPRO) as a subsidiary of PT Pembangunan Perumahan Tbk (IDX: PTPP) is investing about Rp500 billion to build an apartment, called Grand Shamaya in Surabaya, East Java. Director of PT PP Property Realty Saksono Galina said as much as 70 per cent of the funds will come from bank loans and the remaining from internal cash flow. Project Director of Grand Shamaya project, Nurjaman said the handover of the project to consumers are set to be carried out in 2021. Grand Shamaya is a Premium Residential Private Luxury Resort in Surabaya.

Gunung Steel Group and Shenwu to Build $3b Steel Plant in S. Kalimantan

Gunung Steel Group, Indonesia’s largest locally owned private steel company, has signed a memorandum of understanding with China’s Shenwu Technology Corp to build a steel plant in Batulicin, South Kalimantan, with an annual production capacity of 3 million tons for an estimated investment of US$3 billion. This will be the largest investment in Indonesia’s steel industry since South Korea’s Posco and state-controlled steel maker Krakatau Steel invested $6 billion in a joint venture in Banten in 2012.

Bank Muamalat announces NSICCS compliance

PT Bank Muamalat Indonesia (BMI) has announced that it is now fully compliant with the National Standard Indonesian Chip Card Specification (NSICCS) in issuing credit cards. The project was completed with the support of OpenWay, with its WAY4-branded card processing solutions. The company helped make this possible by supporting the issuance of dual application cards – international VSDC (Visa) and domestic NSICCS  card – and setup the 6-digital online PIN in the WAY4 processing system.

Indonesia’s motorbike sales down 3.6% in November

Motorcycle sales in Indonesia fell 3.6 per cent in November from a year earlier, data from an industry association showed on Wednesday. Sales were up 1.5 per cent in October from a year ago. Motorbike sales stood at 550,303 units in November, down from 570,923 units sold a year ago. Sales were also lower than the 579,552 units motorbikes sold in October.

Government to Auction 6 New Toll Road Sections Next Year

The Toll Road Regulatory Agency (BPJT) Head Herry Trisaputra Zuna said the government plans to auction six new toll road sections next year. These include Semarang-Demak toll road in Central Java; Serang-Patimban (carried-over project), Semanan-Balaraja (Banten), Balaraja-Teluk Naga toll road sections in Banten; Samarinda-Bontang in East Kalimantan, Bawen-Jogya in Central Java; and Cileunyi-Tasikmalaya-Cilacap on Java Island.

Three of the six toll road sections are the initiative of private sector. Semanan-Balaraja with length of 31.7 km with estimated investment of Rp11.31 trillion was proposed by Alam Sutera Group, while the  Kamal-Teluknaga-Balaraja along 48.3 km was proposed by Salim and Agung Sedayu groups, Bisnis Indonesia reported.

Pupuk Sriwijaya Awards WIKA to Develop Its New Plant

State-owned fertilizer producer PT Pupuk Sriwidjaja, known as Pusri, has appointed state-construction firm PT Wijaya Karya Tbk (IDX:WIKA) to develop its new fertilizer plant in Palembang, South Sumatera, with a capacity of 2×100,000 million tons per annum (MTPA). The new plant, scheduled to be completed, will raise the company’s fertilizer output to 300,000 MTPA.

Aas Asikin Isat, president director of PT Pupuk Indonesia, the parent firm of Pusri, was quoted as saying by Bisnis Indonesia that in addition to Pusri’s new plant project, Pupuk Indonesia also plans to add the capacity of other fertilizer producers under the group- PT Pupuk Iskandar Muda by 1 MTPA, PT Pupuk Kujang Cikampek by 200,000 MTPA,, PT Petrokimia Gresik by 500,000 MTPA and PT Pupuk Kalimantan Timur by 1 MTPA. (*)

Bank Jateng Raises Rp1 Trillion from Issuing MTNs

Regional bank PT Bank Pembangunan Daerah Jawa Tengah (Bank Jateng) has raised Rp1 trillion from issuing medium-term notes (MTN). The MTNs consists of MTN I Bank Jateng 2017 worth Rp500 billion and MTN Syariah Mudharabah I Bank Jateng 2017 worth Rp500 billion. The MTN issue was oversubscribed by 1.6 times. MTN I Bank Jateng 2017 consists of two tranches – series A worth Rp260 billion with a coupon rate of 7.10 per cent per annum and tenor of 370 days and series B MTN worth Rp240 billion with a coupon rate of 7.45 per cent per annum and tenor of two years. (*)