Morning Briefs – Jan 12

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

Indonesia Hopes to Finalize Freeport Contract Talks by June

Indonesia hopes to finalize contract talks with Freeport McMoRan Inc over the Grasberg copper mine by June, although divestment issues are still unresolved, a mining ministry official said on Thursday. Indonesia and Freeport formed a framework agreement in August to transfer the company’s rights to Grasberg to a new mine license system from an existing contract of work. Under the change, Freeport promised to divest 51 percent of its Indonesian unit to the government.

However, details of the divestment still need to be ironed out by Freeport, the State Owned Enterprises Ministry and the Finance Ministry, Bambang Gatot, the Coal and Minerals Director General at the Energy and Mineral Resources Ministry, told reporters at a briefing.

BNI Sets $210 Million Capital Injection to Subsidiaries

State-owned lender PT Bank Negara Indonesia (Persero) Tbk (IDX:BBNI) sets Rp3 trillion (US$210 million) to strengthen its subsidiaries’s capital to expand and develop information technology this year. “Earlier this year we have disbursed Rp 1 trillion for BNI Syariah,” he said. “We will then invest capital into subsidiaries in accordance with the opportunity,” said BNI director Rico Rizal Budidarmo as quoted by

According to him, the subsidiary will be directed to the business expansion into digital technology according to the current trend. For example, if PT BNI Life wants to issue insurance products on a technology basis, while the parent will provide support through fund injection. So far, BNI has five subsidiaries, namely BNI Syariah, BNI Life, BNI Multifinance, BNI Sekuritas, and BNI Asset Management.

IKEA Opens Distribution Point in Bekasi
Swedish furniture and home accessories company, IKEA recently opened a new distribution point in Bekasi, after previously opened two distribution points in Bogor and Surabaya. The distribution point was built to reach IKEA’s customers based in Bekasi and East Jakarta area. Customers could shop online and pick up the furniture in the distribution points.

IKEA Distribution Point Bekasi is located in Giant Harapan Indah, Jl. Harapan Indah Raya Blok 1B no 16, Medan Satria, Bekasi. The store opens every day from 10.00 until 22.00. IKEA is operated by PT Hero Supermarket Tbk (HERO) along with Hero Supermarket, Giant, Guardian and Starmart.

Australia’s CBA Weighs Exiting $250m Indonesian Insurance Unit: Sources

Commonwealth Bank of Australia, or CBA, will consider selling its majority stake in an Indonesian insurance venture, with any deal likely valuing the insurer at up to $250 million, people familiar with the matter said. Australia’s biggest lender is in talks with some investment banks and is expected to hire a financial adviser soon to help it decide on its 80 percent stake in Commonwealth Life, the people said. According to two of them, the review of the stake forms part of CBA’s move to exit non-core areas and a sale could value Commonwealth Life at about $200 million to $250 million. (*)