JAKARTA (TheInsiderStories) – Followings are some market news that will serve as your investment compiled by our team and Mandiri Sekuritas :
*The auction of Jakarta-Cikampek Elevated Toll Road has been won by a consortium of PT Jasa Marga Tbk (JSMR, Rp4,590, NEUTRAL, TP Rp 5,300). Toll Road Regulatory Agency or BPJT has asked PT Jasa Marga to set up the management of traffic because there will be three major projects for which construction is on toll roads of Jakarta-Cikampek, namely the construction of the light rail rapid (LRT), high-speed trains, and the Jakarta-Cikampek Elevated Toll Road.
*PT Ciputra Development Tbk (CTRA, Rp1,600, BUY, TP Rp1,600) is currently working on two joint venture projects in Batam and the CitraLand Megah Citra Aerolink. The Batam project could be a source for income for CTRA as residential property prices in Batam has jumped 11.3% a year.
*PT Bank UOB Indonesia Tbk (BBIA) released bonds and subordinated bonds worth Rp1.1 trillion with a coupon range of 6.75% - 10% for funding sources needs. The Series A bonds will carry coupon rate of 6.75% -7.4% per year, with tenor of 370 days, Series B bonds with coupon rate of 7.5% -8.25% per year with tenor of 3 years; and Series C bonds with coupon rate of 7.75% -8.5% per year and tenor of five years to maturity.
In addition, the coupon subordinated bonds with a principal value of Rp 100 billion will carry interest of 9.25% -10% per year. The bonds’ interest payment will be made every three months. This bond ratings has been given rating AAidn by PT Fitch Ratings Indonesia.
*JP Morgan is opening a virtual business branch in Indonesia, using technology to expand its geographic reach without having to buy real estate. The virtual branch promises a comprehensive suite of banking services that can be securely accessed from desktops and mobile devices, enabling clients to submit documents digitally, initiate and approve transactions online as well as have complete visibility of all cross-border and statutory payment transactions. JP Morgan was introduced in India last year and it plans to expand the idea to Thailand and China soon.
*The Indonesian government will ease more license procedures in a bid to boost the activity to look for new oil reserves. The move came amid slow exploration of new oil reserve, dwindling output and rising energy demand in the country. Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, said that the government has trimmed the number of permits required for exploration from 104 to 42. The government plans to drop all taxes charged during exploration period, and raise by more than double production sharing for investors, he said.
*Mazda Motor Corporation has announced that it is leaving Indonesia, but the automaker is not pulling out of the market completely. The Japanese company will continue to have a presence in the market through Eurokars Motor Indonesia, which has been appointed as the Mazda distributor in the republic. Eurokars said that Mazda’s distribution network of 45 dealers in the country will be officially transferred from Mazda Motor Indonesia to Eurokars Indonesia in February. Eurokars has been a Mazda dealer in Indonesia since 2007. (*)