Daily Business Briefs — Nov 8

JAKARTA (TheInsiderStories) – Good Morning. We provide several important news items that might help your business decisions today, as follows:

Bank Mandiri disburses Rp1.4 Trillion Loan to Waskita

PT Bank Mandiri (Persero) Tbk (MDRI.JK participates in a syndicated loan worth Rp5.14 trillion to PT Waskita Karya (Persero) Tbk (WSKT.JK) for the construction of the Jakarta-Cikampek II elevated toll road project. The contribution of Bank Mandiri in this syndication amounted to Rp1.437 trillion.

In this transaction, Bank Mandiri will also act as Joint Mandated Lead Arranger (JMLA) and Bookrunner. Company’ realization of financing for toll road development reached Rp9.4 trillion until September 2017, up by about 12 per cent, year-on-year.

Official Reserve Assets Amounted to US$126.5 Billion

Indonesia’s official reserve assets position stood at US$126.5 billion as of end-October 2017. Despite lower than the end of September 2017 level at $129.4 billion, the end of October 2017 reserve asset position was sufficient to finance 8.6 months of imports or 8.3 months of imports and servicing of government external debt repayments, well above the international standards of reserves adequacy at 3 months of imports.

The decline in the reserve assets in October 2017 was mainly due to the use of foreign exchange to repay government external debt and stabilize rupiah in accordance with its fundamental. In addition, the decline was also attributable to lower banks’ foreign currency term deposits to Bank Indonesia in line with the residents’ necessity to repay their foreign currency liabilities.

JCI Hits Another High Level at 6060.4

Indonesian index marked a record closing high, having risen 0.2 percent from previous close 6050.8 to 6060.4, owing its gains to the consumer staples sector, with cigarette maker PT Gudang Garam Tbk  inching 4 percent higher. Meanwhile, Singapore shares climbed nearly 1 percent on Tuesday to their highest close in more than two years and Indonesia marked a record close as broader Asian markets inched up to decade highs, underpinning sentiment in Southeast Asia. Financials lifted Singapore shares 0.9 percent higher, with the city-state’s top lender DBS Group Holdings jumping 3.1 percent to hit its highest close in more than 17 years.

World Bank Sees Low Contribution of Indonesia`s FDI

Despite its improvement in ease of doing business (EODB) rank to 72 among 190 surveyed countries, world bank noted that Indonesia has a low rank of FDI competitiveness index from the Organization for Economic Cooperation and Development (OECD), despite President Joko Widodos effort to improve the ranking. The World Bank has identified some factors, namely the restriction of foreign ownership in some regions, discriminative investors screening, restriction in land buying, capital, as well as in profits, as reasons behind the low FDI in Indonesia

Indika Closes Bond for Kideco Acquisition

Indonesia power house Indika Energy sealed $575 million bond yesterday. New fund will be used to close its recent acquisition of Kideco jaya Agung. Last Septmber company announced it taking additional 45 percent stake in coal producer Kideco, becoming majority shareholder with 91 percent equity ownership. The acquisition involve an upfront payment of $517.5 million and contingent liability $160 million.