(The Insider Stories) – Indonesia government is proposing an electricity subsidy of IDR81.97 trillion to IDR91.1 trillion in the 2014 draft state budget (RAPBN). The Energy and Mineral Resources Ministry’s director general for electricity, Jarman, said the proposed amount is based on the assumption of rupiah exchange rate being  IDR9,600 to IDR9,800 to the dollar and an oil price assumption price of $108 per barrel. In the 2013 RAPBN, the government has proposed IDR87.24 trillion for the electricity subsidy.

• Indonesia’s government has abandoned a plan to combine state-owned agricultural commodities companies worth US$5.6 billion to set up what would have been one of the world’s largest plantation firms, state-owned enterprises minister Dahlan Iskan said. He declined to specify the reasons behind the government’s decision, but officials involved in the merger said the plan had run into several bureaucratic and taxation hurdles.

• House of Representatives Commission XI on Finance and Banking says that it has received three Bank Indonesia (BI) deputy governor candidate names from President Susilo Bambang Yudhoyono. The nominees were two BI governor’s assistants – Hendra and Mulya Siregar – and BI foreign exchange directorate executive director Tresna Wilda Suparyono. The chosen candidate would replace Muliaman Hadad, who is now the chairman of the Financial Services Authority (OJK).
• Indonesia electronic distributor PT Electronic City hope to raise up to IDR1.80 trillion from offering 333.333 million shares with indicative prices IDR4,050 to IDR5,400 each. PT Danareksa Sekuritas sole underwriter for the IPO and Credit Suisse as a sole global coordinator. Electronic City will sell the shares on June 25 to 27 with a planned listing on the Indonesia Stock Exchange on July 3. Electronic City plans to open 30 new stores this year and that it has already opened 23 stores last year. The expansion would help the company increase revenue by 50 percent from last year’s IDR1.4 trillion. Net income is estimated to grow by about 10 percent.
• Transportation company PT Cipaganti Citra Graha plans to selling 2 billion shares, or 40 percent of its stake, at an indicative price range of IDR150 to IDR220 per share. Cipaganti will offer shares to investors on July 1-3 and scheduled to be listed on the Indonesia Stock Exchange on July 9. Mandiri Sekuritas and Kim Eng Securities are hired as underwriters. The company is buying 500 units for its shuttle bus business, another 500 units for its car rental business, 900 units for its taxi business, and 50 tour buses. The company currently has almost 1,000 taxis across several Javanese cities. Cipaganti is owned by Cipaganti Global Corporindo and Cahaya Prima Perkasa.