JAKARTA (TheInsiderStories) – Followings are some news that could affect trading on the stock market today, compiled by the Insider Stories team and Mandiri Sekuritas :
- Saudi King Salman bin Abdulaziz al-Saud is scheduled to come to Indonesia on March 1 to 9 March. The King of Arabia will also bring a group of about 1,500 people, which is made up of ministers, businessmen to princes. There are at least 10 ministers and 25 princes were invited to come to Indonesia. The Saudi King’s official state visit will only be held on March 1 to March 3. As for the rest, the King will go to Bali for a break. In the meeting, the two heads of state are scheduled to discuss investment potentials in Indonesian that may attract investors from Saudi, such as tourism and low-cost housing as well as energy sector, in particular a cooperation between PT Pertamina and Saudi Aramco.
- The government is optimistic the talks of Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) can be resolved this year, Chairman of the Investment Coordinating Board (BKPM) Thomas Trikasih Lembong said. So far, the negotiation process remains on track, which is about 70% completed. The main issues of IA-CEPA are including Trade in Goods (including Rules of Origin, Customs Procedures and Trade Facilitation, Technical Barriers to Trade, Sanitary and Phytosanitary), Trade in Services (including Financial Services, Movement of Natural Persons, Professional Services, Telecommunication), Investment, E-Commerce, Competition Policy, and Institutional and Framework Provisions. Both countries also agreed to hold meetings with members of the Indonesia-Australia Business Partnership Group (IA-BPG) in order to provide the latest developments of IA-CEPA and request input from the business sectors of both countries. To support this negotiation process, President Joko Widodo is scheduled to fly to Australia on Feb. 25 to 26. In addition, the President’s visit will follow up the results of the mining sector agreements between Newcrest Mining Limited (Newcrest) and PT Aneka Tambang Tbk (IDX: ANTM) related exploration gold and copper mines in several regions in Indonesia amounted to US$1 billion in the next 5 years.
- Indonesia and Russia will likely conclude an agreement for the purchase of up to 10 Russian-made Su-35S multirole fighter jets for the Indonesia Air Force (TNI-AU) in the near future, according to a senior Russian defense industry representative, the director for international cooperation and regional policy at Rostec, Viktor Kladov. Rostec is Russia’s largest state-owned defense industrial conglomerate. The TNI-AU already operates a number of Russian aircraft, including 11 Su-30s and five Su-27s. The Su-35s would replace obsolete U.S.-made F5 E/F Tiger II jet fighter jets, which had been in service with the TNI-AU since the 1980s and were retired over the last years. The Indonesian Air Force also operates 14 more advanced F-16A/B combat aircraft and is slated to receive ten more by the end of 2018.
- Spanish major energy company Repsol recently concluding that natural gas projects in Indonesia are the most profitable segment of the company’s global operations. While, Malaysian state oil firm Petronas said it is now in the process of selling part of the SK316 offshore natural gas block in Malaysian waters, which includes the producing NC3 gas field, as well as the development-stage Kasawari field — and additional exploration acreage. These are significant assets, with the producing NC3 field originally having a discovered reserve of 2.6 trillion cubic feet. And the Kasawari field holding another 3 trillion cubic feet of future output. Petronas reportedly asking US$1 billion for a 49 percent stake in the SK316 project. Thailand’s PTTEP and Indonesia’s PT Pertamina are speculated as potential buyers.
- Tourism Deputy Minister for Foreign Marketing Affairs I Gde Pitana said on Tuesday that Indonesia’s presence in India’s Outbound Travel Mart in Mumbai was a proof of Indonesia’s willingness to attract visitors from India. Pitana said India has a tremendous outbound market with 20,380,000 recorded in 2015, up 11.1 percent from that of a year earlier. Around 45 percent of India’s outbound travelers came from Mumbai, India’s second largest business city after New Delhi. For the same purpose to lure more Indian visitors, Indonesia took part in India’s largest tourism event of 2017 South Asia Travel Tourism and Expo in New Delhi last week. India has been among Indonesia’s top 10 market for source of visitors with 293,415 recorded in 2015, a 23-percent increase from 2014. Indonesia welcomed more than 12 million foreign visitors last year, and is expected to see 15 million ones this year. With a target to welcome 20 million foreign tourists by 2019, Indonesia is striving to build 10 new tourist destinations across the country, which are expected to be on a par with the resort island of Bali.
- Ministry of Trade plans to implement a special rate on excess imported products. Suppose, for imports carried when food production has been satisfied, there will be special rates for importers. There is a system of mixing that is being discussed in the office of the Coordinating Minister, the tariff quota. So there must be a scheme that could control the price or if there is an increase, the state can also get something.
- The government successfully issued Sukuk worth Rp6.01 trillion of total incoming bids of the auction participants Rp10,38 trillion. The issuance value was slightly higher than the indicative target of Rp 6 trillion.
- Government began this year requiring the use of general allocation funds (DAU) and revenue sharing at least 25% for infrastructure. The total allocation of funds transfers to the regions and villages in 2017 amounted Rp764.9 trillion. Deputy Finance Minister Mardiasmo said DAU is more widely used for personnel expenditure. This share could even reach 80% of the DAU.
- PT Bank CIMB Niaga Tbk (BNGA) reported an consolidated net profit (audited) of Rp2.08 trillion in the period ended December 31 In 2016, an increase of 386.4% year-on-year, and produced earnings per share of Rp82.83. Growth in net profit was supported by net interest income or net interest Income, which increased by 6.2%; the increase of non-interest income or Non-Interest Income, mainly driven by improved business in the treasury and capital markets as well as income from bancassurance, as well a decrease in the provision charge amounted to 7.2% y-o-y. President Director of CIMB Niaga Tigor M. Siahaan said, total assets reached Rp241.57 trillion per December 31, 2016, rose by 1.1% in y-o-y, CIMB Niaga maintains its position as the fifth largest bank in Indonesia in terms of asset. Total gross loans disbursed grew 1.6% y-o-y reach Rp180.16 trillion per 31 December 2016. Of the total loans, consumer loans totaled Rp51.42 trillion (29%), and micro, small and medium enterprises reached Rp34.51 trillion (19%), which both reflect the contribution of 48% of total loans. The rest comes from wholesale banking, which consists of corporate loans amounted Rp61.01 trillion (34%) and loans Commercial for Rp33.22 trillion (18%). (*)