JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
Indonesia’s Pindad Issues Notes to Support Expansion
Indonesian defense company PT Pindad has issued a Medium-Term Notes (MTN) worth Rp1 trillion ($74 million) to support its industrial expansion. The Notes will mature in three years. PT Pindad said the funds generated through the issuance would be directed to boost business development projects in both defense and commercial manufacturing sectors. The MTN proceeds will be used for additional working capital as PT Pindad looks to secure contracts from the Indonesian Ministry of Defense and the Indonesian Armed Forces as well as various industrial product contracts.
Indonesia Unlikely to Import Gas until 2019
Deputy Minister for Energy and Mineral Resources Arcandra Tahar said Indonesia still has uncommitted buyers of LNG produced by domestic producers. Therefore, he said, Indonesia is unlikely to import LNG by 2019. Recently, Indonesia was in talks with Qatar to import LNG given Qatar’s low LNG price.
Government Delays Auctions of Oil and Gas Working Areas
The Energy and Mineral Resources Ministry has decided to delay the auction of Oil and Gas Working Areas Phase I 2017, which is supposed to be done by Nov. 27, pending on the issuance of the Government Regulation on Gross Split Tax Scheme. Director General for Oil and Gas Ego Syahrial said the last date for bidders to submit their bids for the 15 Working Areas being tendered is set on Nov. 27. The ministry has decided to delay the submission of bids until end of this year.
People Bank of China Holds Interest Rate
PBoC continues to maintain its neutral policy stance while keeping the focus on managing and preventing systemic risks, monitoring liquidity conditions and ensuring an environment of stable growth, reform, and restructuring. Financial market reform is set to deepen further through its twin pillar of monetary policy and macroprudential policy, the market orientation of interest and FX rates, liquidity management measures, use of lending policy, and other measures to support national priorities, including economic reform and restructuring and Belt & Road Initiative.
Centratama Telekomunikasi Eyes $390m in Three Tranches
Centratama Telekomunikasi Indonesia, an IT and internet services provider, is in the market with a triple-tranche $390m loan tied to its M&A plans. The deal was launched into general syndication on Nov. 13 and responses are due by December 22.
Centratama is working with CTBC Bank and Standard Chartered as mandated lead arrangers and bookrunners. The five-year loan, which has an average life of 3.7 years, is split into three tranches of $195m, $150m and a $45m revolving credit facility. The margin for onshore lenders is 350bp over Libor and offshore, 325 basis points.
EV Hive Continues Rapid Indonesia Expansion
EV Hive, Southeast Asia’s largest collaborative workspace, announces the completion of the merger with Clapham Collective, a community workspace located at the heart of Medan, North Sumatra, Indonesia. Chris Angkasa, founder of Clapham, will also join EV Hive’s Board of Advisors. EV Hive will connect multi-city entrepreneurs, freelancers, as well as small and medium enterprises (SMEs) by providing community hubs at the third most populous city in Indonesia.
KEPPEL to Divest Stake in Westin Bali Resort
KEPPEL Land is axing its stake in an Indonesian associate that is set to sell off a West Bali site. This move is meant to help sharpen the company’s focus on the Jakarta market. It expects to record a net divestment gain of about S$17.6 million by the end of 2017, parent group Keppel Corporation said in a Singapore Exchange announcement on Tuesday evening. Keppel Land now has an effective 24.5 per cent in Purimas Straits Resort, which has entered into an agreement to sell the 20.5 ha site to Bali Sudamala Development.
Indonesian Government Eyes Furniture, Craft Exports $2B in 2018
The Industry Ministry is confident that the furniture and crafts exports value worth of $2 billion in 2018 and by 2019 the value could go up to $2.5 billion. The ministry’s director general of small and medium enterprises Gati Wibawaningsih said in a written statement on Tuesday (21/11) that this year’s exports from the two sectors reached $1.06 billion. Among Southeast Asian countries, Indonesia currently ranks the fifth position in furniture and handicraft exports; behind Vietnam, Malaysia, and Singapore.
Soekarno-Hatta Airport Train Operates in December
Transportation Minister Budi Karya Sumadi said the Soekarno-Hatta airport train will fully operating by early December. He said on Tuesday (21/11), there has been no policy change related to the Soekarno-Hatta Airport train fare, which is Rp100,000. In addition to Soekarno-Hatta Airport, the government will finalize other airport train projects in several cities, including Solo, Surabaya, Yogyakarta, and Padang. Budi said the next airport train project is for Adi Sumarmo Airport, Solo. For Solo, the completion target is by the end of 2018, while for While Yogyakarta in early 2019, he said.
Bank Central Asia Takes Part in Rp12 Trillion Loan Syndication to PLN
PT Bank Central Asia Tbk (IDX:BBCA) takes part in loan syndication facility worth Rp12 trillion provided to the state electricity company PT Perusahaan Listrik Negara (PLN). The bank contributes Rp2.5 trillion to the loan facility. The loan will be used by the electricity company to develop power plants and transmissions.