Indonesia Economy Forum

[Nike]

Garuda re-exploring plans for flights to US in 2017

Rabu, 15 Juni 2016 22:20 WIB | 649 Views
Jakarta (ANTARA News) - Garuda Indonesia plans to re-explore the feasibility of starting flights to the United States in 2017 if the national flag carrier passes Category 1 test of safety and security standards as mandated by the Federal Aviation Administration (FAA).

"Next year, we will try and clear this test as it is part of our five year plan, or this may be achieved even earlier," the Garuda Indonesia President Director, M Arif Wibowo, said here on Wednesday.

He noted that 400 thousand passengers travel from the US to Indonesia every year.

The cities which receive maximum visitors are Los Angeles and New York, he added.

"The number of potential passengers departing from Los Angeles is 120 thousand, while many more depart from New York," Arif said.

The flights will transit through Narita, Japan and will use two units of Boeing 777.

"Actually, we want to start direct flights but that is not possible as of now. The option is to fly via Narita, Japan," he said.

Meanwhile, the Director General of Air Transportation at the Transportation Ministry, Suprasetyo, said the audit result of the FAA will be declared by July 2016 at the latest.

"We have completed and reported all the documents and are optimistic that we can achieve our target," he added.

The Director of Airworthiness and Aircraft Operation at the Transportation Ministry, Mohammad Alwi, said the last seven documents related to flight inspection have been reported online to the FAA auditors.

"All the documents have been accepted. God willing, this July we will receive the good news as Ramadan and Eid gift," he said.

According to him, if Garuda is awarded Category 1 status, then its aviation safety standards and security aspects must conform to international standards, in line with the flag carriers in the same category.(*)

http://www.antaranews.com/en/news/105240/garuda-re-exploring-plans-for-flights-to-us-in-2017

 

[Nike]

pertamina to operate three geothermal plants in 2016
Kamis, 16 Juni 2016 07:32 WIB | 1.585 Views

Jakarta (ANTARA News) - PT Pertamina Geothermal Energy (PGE), the national enterprise engaged in energy, is ready to operate three geothermal plants this year with a total capacity of 165 megawatt (MW).

"These geothermal projects are meant to boost the national energy security program," Corporate Secretary of PGE Tafif Azimudin said here Wednesday.

The three geothermal plants are Unit 3 in Ulubelu, Lampung, with a capacity of 55MW, the Lahendong Unit 5 in North Sulawesi with a capacity of 55MW, and the Karaha Unit 1 in West Java with a capacity of 55MW.

The Ulubelu unit 3 is scheduled to operate in August 2016 in accordance with the commercial operation date (COD).

Meanwhile, the Lahendong unit 5 and the Karaha unit 1 are scheduled to begin operations in December 2016.

"The total additional capacity installed in these geothermal plants is 160MW. Currently, the installed capacity of geothermal power plants managed by PGE is 437MW," Tafif said.

PGE has also completed the exploratory drilling of wells in these geothermal power plants. The drilling consists of two wells in Ulubelu unit 3, two wells in Lahendong unit 5, and three wells in Karaha unit 1.

The operations at these geothermal power plants are expected to increase Pertaminas geothermal power production.

Through 2015, Pertaminas geothermal production amounted to 3056.82 gigawatt-hours (GWh), increasing at 2831.40 GWh as compared to 2014.

Data obtained from Pertamina showed that in the first quarter of 2016 Pertaminas geothermal production reached 761.51 GWh, up 6.3 percent, as compared to that of the same period last year.

From January to April 2016, the operational expenses decreased to US$3.1 per ton compared to that in 2015, when it was $3.7 per ton.(*)

 

[Boss Dragun]

Indonesia's MNC Land to Invest $500m in Theme Park: CEO

http://jakartaglobe.beritasatu.com/corporate-news/indonesias-mnc-land-invest-500m-theme-park-ceo/

Jakarta. Indonesia's MNC Land, part of the MNC group, will invest $500 million in a theme park in West Java province, CEO Hary Tanoesoedibjo said on Friday (17/06).

The company will partner with Chinese construction firm Metallurgical Corporation Group in developing the property, tycoon Tanoesoedibjo said.

"For theme park alone [the investment] is $500 million and there are banks already that will finance up to 15 years," the CEO said.


Cemindo Eyes Another $600m Investment for New Cement Plant

http://jakartaglobe.beritasatu.com/business/cemindo-eyes-another-600m-investment-new-cement-plant/

Jakarta. Cemindo Gemilang, a privately held cement producer with Merah Putih cement brand, plans to build a new integrated plant next year, with the company adamant to continue expansion to tap long-term demand of the building material, disregarding contemporary overcapacity in domestic market.

The company is still looking for the plant location, Andre Vincent Wenas, a director at Cemindo Gemilang, said this week.

It is estimated that the new plant would have a capacity to produce 3 million metric tons of cement a year and would cost up to $600 million, similar to the company's existing integrated plant in Banten.

"Lets hope that we can get a location by next year," Andre said, adding that the company aims to source raw material, make the cement, and packs it at the location.

The Indonesia Cement Association said earlier that domestic cement industry now underutilizes plants amid weak property sales and slowing demand.

Andre, however, says the company placed its bet on long term demand in a country, despite per capita cement consumption lagging behind Singapore and Malaysia.

"Cement demand for infrastructure will only increase in the future and we will be there to meet it," Andre said.

For the short term, Cemindo is aggressively introducing its brand to distributors and construction material stores while improving its distribution infrastructure.

The efforts seemed to work with Merah Putih cement accounting for 7 percent of the market share, up from 4 percent in the same period a year ago, Andre said.

Also, Cemindo explores possibility to increase exports with shipments to the Philippines, Vietnam and Australia.

The Indonesia cement market is dominated by state-controlled Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia, which together account for around 80 percent building material market.

 

[Nike]

Indonesia Rejects Separatist Movement in West Papua: Foreign Ministry

Jakarta. The Indonesian government has rejected the claims of a separatist group which calls themselves the United Liberation Movement for West Papua, or ULMWP, a press release from the Foreign Ministry said on Friday (17/06).

“The ULMWP is a separatist movement in a sovereign state. The movement has no legitimacy and does not represent the people of West Papua,” the ministry's director general of Asia Pacific and Africa Desra Percaya said at the Ministerial Level Meeting of the Melanesian Spearhead Group (MSG) in Lautoka, Fiji, Thursday.

Desra in his statement made specific references to the ULMWP’s effort to upgrade its status from an observer group to a fully-fledged member of the MSG.

Intense lobbying from the Indonesian delegation had apparently foiled the ULMWP's move.

MSG merely noted ULMWP's proposal and formed a committee to discuss membership criteria, as some of its member states had proposed to have Indonesia instead as a full member of the MSG.

The Indonesian delegation also invited MSG member countries to attend the Bali Democracy Forum on Dec. 8-9 to discuss how to strengthen security cooperation in the Melanesian subregion.

Desra also met face-to-face with the foreign ministers of Fiji and the Solomon Islands, the head of the Papua New Guinea delegation and the director general of the MSG during the meeting.

http://jakartaglobe.beritasatu.com/...aratist-movement-west-papua-foreign-ministry/

 

[pr1v4t33r]

BRI, Indonesian SOC Bank have it's sattelite launched today
Roket Ariane 5 dalam menjalankan misi V230, dengan membawa satelit BRIsat bersama satelit Echo Star XVIII, diluncurkan dari fasilitas antariksa Arianespace, Kourou, Guyana, Prancis, Minggu (19/6/2016). Satelit perbankan pertama di dunia milik PT Bank Rakyat Indonesia (Persero) Tbk tersebut berhasil meluncur pada Sabtu (18/6/2016) waktu setempat atau Minggu dini hari waktu Indonesia.

 

[Nike]

World Bank predicts Indonesian GDP growth at 5.1 percent
Senin, 20 Juni 2016 20:01 WIB | 969 Views

Jakarta (ANTARA News) - The World Bank has projected that Indonesian Gross Domestic Product (GDP) would grow at a rate of 5.1 percent in 2016 amid global economic slowdown.

According to the World Banks Indonesia Economic Quarterly, June 2016 edition, the continuing policy reforms have strengthened the resilience of the Indonesian economy and helped overcome the effects of slowing demand and the global financial market turmoil.

"The cautious financial policy, increased government investment in infrastructure and policy reforms aimed at improving the investment climate, have helped Indonesia in maintaining its rate of growth in the range of 5.1 percent," the World Banks Country Director in Indonesia, Rodrigo Chaves, said at the Trade Ministry here on Monday.

Chaves also claimed that private consumption and government spending are also projected to sustain the economic growth in Indonesia this year.

However, the World Bank recently cut its forecast for world economic growth by half a percent from the earlier projected 2.4.

A slower world economic growth will impact the recovery of economic growth in Indonesia.

Global growth forecast revision due to the slowing growth in developing countries exporting commodities is expected to be just 0.4 percent this year.

On the other hand, the Indonesian economy fared better when compared with other commodity exporting countries, such as Malaysia (4.4 percent) and Thailand (2.5 percent), though it did less well than the Philippines at 6.4 percent and Vietnam (6.2 percent).

Indonesian World Banks Chief Economist Ndiame Diop noted that with the weakening of the commodity sectors, Indonesia should seize this opportunity to expand its manufacturing and service sectors.

Indonesias manufacturing sector has not reflected much change in the last 15 years with growth hovering on an average around 0.6 percent.

"Its a great opportunity to keep implementing reforms to make the manufacturing and service sectors, especially tourism, even more competitive. The strong partnership with the private sector is also very important to rejuvenate the industry and keep pace in the field of technology," added Ndiame.(*)

http://www.antaranews.com/en/news/105311/world-bank-predicts-indonesian-gdp-growth-at-51-percent

 

[Nike]

Foreign Direct Investment into Indonesia Grows 19.2% in 2015
21 Januari 2016

In rupiah terms, foreign direct investment (FDI) into Indonesia increased by 19.2 percent year-on-year (y/y) to IDR 365.9 trillion in 2015, according to the latest data from the Indonesia Investment Coordinating Board (BKPM). The BKPM, the central government's investment services agency, said FDI was strong in the fourth quarter of 2015 - rising 26 percent (y/y) - on the back of the government's recently unveiled series of economic stimulus packages.

In US dollar terms, FDI into Indonesia rose to USD $29.27 billion in full-year 2015, up 2.6 percent from USD $28.53 billion in the preceding year. It is important to note that the BKPM uses the rupiah exchange rate that was set in the 2015 State Budget (IDR 12,500 per US dollar). This rate is much stronger than the current rupiah rate. Today Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) was at IDR 13,899 per US dollar.

Total direct investment (FDI + domestic direct investment) reached IDR 545.4 trillion in 2015, up 17.8 percent (y/y), hence achieving the BKPM's target of generating IDR 519.5 trillion worth of investment in 2015 (these figures exclude investment in banking, oil and gas sector). BKPM Chairman Franky Sibarani expressed his contentment to see the agency's investment target being achieved amid ongoing global economic uncertainty. Moreover, investment in Indonesia's manufacturing industry rose 43.3 percent (y/y). As Indonesia needs to ramp up its manufacturing industry in order to reduce its dependence on volatile commodities for its export performance, the steep jump in investment in manufacturing is a positive development.

Regarding FDI in Indonesia in full-year 2015, Singapore was the leading investor, investing USD $5.9 billion, followed by Malaysia (USD $3.1 billion), Japan (USD $2.9 billion), the Netherlands (USD $1.3 billion), and South Korea (USD $1.2 billion). The biggest beneficiaries of FDI in 2015 were mining, transportation, telecommunication and the mineral-processing sector. Sibarani added that investment from China grew sharply (especially for smelters and plants in Kalimantan and Sulawesi). However, it is not uncommon for Chinese companies to invest through their Singapore-based subsidiaries.

The continuously rising investment figures (see tables below) over the past couple of years give rise to optimism that Indonesia can expect to see more investment in the years ahead, particularly as the Indonesian government has been unveiling a series of economic stimulus packages since September 2015. With these packages the central government aims to attract more investment by deregulation and by offering fiscal incentives to (potential) investors. The BKPM targets investment realization in Indonesia to grow to IDR 594.8 trillion in 2016. In the soon-to-be-released ninth economic stimulus package the central government is expected to allow bigger foreign ownership in sectors including cinema/film, tourism, leisure, trade, e-commerce, sugar and rubber industries, minimarkets and department stores.

Foreign and Domestic Investment in Indonesia (in IDR trillion):

2014
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Domestic Direct Investment 34.6 38.2 41.6 41.7 42.5 42.9 47.8 46.2
Foreign Direct Investment 72.0 78.0 78.3 78.7 82.1 92.2 92.5 99.2
Total Investment
106.6
116.2 119.9 120.4 124.6 135.1 140.3 145.4

2011
2012 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Domestic Direct Investment 14.1 18.9 19.0 24.0 19.7 20.8 25.2 27.5 27.5 33.1 33.5 34.1
Foreign Direct Investment 39.5 43.1 46.5 46.2 51.5 56.1 56.6 65.5 65.5 66.7 67.0 71.2
Total Investment
53.6 62.0 65.5 70.2 71.2 76.9 81.8 83.3 93.0 99.8 100.5 105.3
Source: Indonesia Investment Coordinating Board (BKPM)

Sibarani added that investment realization in Indonesia in 2015 provided employment to an additional 1.44 million people. This year he would like to see an additional two million people obtaining employment from foreign and domestic investment.

The island of Java - Indonesia's most populous island - remains the biggest receiver of investment. In 2015 this island received IDR 296.7 trillion worth of investment, approximately 54 percent of total investment in Indonesia, whereas in 2014 Java obtained 57 percent of total foreign and domestic investment. From the perspective of equality between the western and eastern regions of Indonesia it is good to see a more even distribution between the regions. The BKPM would like to see Java receive 51 percent of total investment in 2016.

Investment in Indonesia per Region in 2015:

Region Investment Value % of total
Java IDR 296.7 trillion 54.5%
Kalimantan IDR 93.0 trillion 17.1%
Sumatra IDR 84.4 trillion 15.5%
Sulawesi IDR 33.2 trillion 6.1%
Maluku & Papua IDR 19.4 trillion 3.5%
Bali & Nusa Tenggara IDR 18.7 trillion 3.4%
Indonesia IDR 545.4 trillion 100%
BAGI KOLOM INI

 

[CountStrike]

Indonesia to have biggest reinsurance company in ASEAN
Jumat, 24 Juni 2016 07:05 WIB | 529 Views

Jakarta (ANTARA News) - Indonesia is targeting to have the biggest reinsurance company in ASEAN after a merger of Reasuransi Internasional Indonesia (ReIndo) with PT Reasuransi Indonesia Utama (Indonesia Re).

"With total assets of Rp6 trillion after the merger, Indonesia will have a large and sturdy reinsurance company that makes IndonesiaRe the largest reinsurance company in ASEAN," the President Director of IndonesiaRe, Frans Y. Sahusilawane, said here on Thursday.

The signing of the merger agreement between ReIndo and IndonesiaRe was witnessed by the Deputy Minister of State-Owned Enterprises for Financial Services, Survey and Consultants, Gatot Trihargo, and the Director of the Chief Executive of the Finance Service Authority, Firdaus Jaelani.

According to Frans, the merger process was initiated through the establishment of a subsidiary company, PT Reasuransi Syariah Indonesia in order to transfer ReIndos reinsurance business portfolio.

After the merger, IndonesiaRe will run reinsurance businesses, which will be supported by two subsidiaries, namely Insurance Asei Indonesia, in-charge of general insurance and Reasuransi Syariah Indonesia, which is engaged in Sharia reinsurance.

"The establishment of a national reinsurance company is a government policy that will tackle the current account deficit," he said.

The bigger and stronger national reinsurance company is expected to reduce capital outflow of reinsurance premiums, which are estimated to reach Rp20 trillion annually.

"The potential of the reinsurance market in Indonesia is very large in terms of premiums, which are in line with Indonesias gross domestic product and penetration rates that are still lower than other ASEAN countries, such as Malaysia, Thailand and Vietnam," Frans said.

The national reinsurance company will target a premium income of about Rp9 trillion by 2017, up from the projected premiums in 2016 of about Rp6 trillion.(*)

 

[CountStrike]

INKA to expand exports of railway cars to Egypt
Red: Julkifli Marbun

Antara/Siswowidodo

illustration

REPUBLIKA.CO.ID, JAKARTA -- State-owned PT Industri Kereta Api Indonesia (INKA) is preparing to expand its exports of railway cars to Vietnam, Sri Lanka and Egypt, according to its president director, Agus H Purnomo.

"After Bangladesh, INKA is now targeting several other countries in Asia and the Middle East. We are ready to penetrate Vietnam, Sri Lanka and Egypt," he said in a press release issued here on Saturday.

He said the move was taken following its success in meeting Bangladesh's order of passenger cars.

He said in 2015 the company had received a contract to supply 150 railway cars to Bangladesh, which was immediately carried out and their delivery is expected to be completed before the end of this year.

In the bidding process PT INKA was able to beat several rivals from China.

The railway cars that have been ordered are divided into two types with the first totaling 100 unit is a meter gauge (MG) type (for use with 1000 mm tracks) and 50 Broad Gauge (BG) carriages (for use in 1676 mm tracks).

The MG type has a 2+2 seat arrangement with two-seat rows on the left and right side and an aisle in the middle while the BG type has a 2+3 arrangement.

"The operation of the INKA-made cars in Bangladesh was officially launched personally by prime minister Hasina Wajed on Saturday (June 25). The train carrying the cars named Sonar Bangla Express serves the route from Dhaka to Citagong," he said.

"INKA deserves pride as its cars have been used in Bangladesh. So, now we will prepare to enter other countries," he said.

Sumber : Antara

 

[Boss Dragun]

Indonesia Wins Rp 49.4b Frozen Seafood Contracts From China

http://jakartaglobe.beritasatu.com/business/indonesia-wins-rp-49-4b-frozen-seafood-contracts-china/

Jakarta. Indonesia has won contracts worth Rp 39.4 billion ($3.7 million) to supply frozen shrimp and processed fish products to China at the 3rd China International Aquatic Products Exposition in Guangdong, a statement released by the Trade Ministry on Friday (24/06) said.

"The value of the contracts can be increased if the demand warrants it," acting director general of export development at the Trade Ministry Tjahya Widayanti said in the statement.

The trade show — which ran from 18 June to 20 June — presented seafood products from 11 Indonesian companies: Medan Tropical Canning, Fuja Luhur Inti Abadi, Madsumaya Indo Seafood, Nusantara Alam Bahari, Samudra Kencana Mina, Bumi Menara Internusa, Manis Madu Makmur, Indoboga Jaya Makmur, Cahaya Bahari Belitung, Indonesia SK Foods and Stars Mandiri Waskito.

Indonesia's Beijing-based trade attaché Dandy Satria Iswara said China consumes a lot of seafood, presenting a big business opportunity for Indonesian seafood exporters.

"China's population is still growing and the Chinese people's buying power is high — this is an opportunity not to be missed," Dandy said.

China is a major trading partner for Indonesia, with non-oil trade totaling $42.48 billion between the two countries in 2015. Indonesia's non-oil exports to China totaled $13.26 billion that year, dominated by palm oil, chemical wood pulp, lignite, coal, palm kernel and copper.

From 2011 to 2015, Indonesia's seafood export to China increased 9.17 percent in value from $83.47 million to $119.31 million.

"The current export value is still relatively small compared to its billion dollar potential. We should do more promotional activities like this expo in China, " Tjahya said.





Canada's Fairfax to Buy 80% of Indonesia's AMAG for $165m: Source

http://jakartaglobe.beritasatu.com/business/canadas-fairfax-buy-80-indonesias-amag-165m-source/

Jakarta/Singapore. Canada's Fairfax Financial Holdings has agreed to buy 80 percent of Asuransi Multi Artha Guna (AMAG) for about $165 million, a person familiar with the matter told Reuters, sending shares of the Indonesian insurer to a record high.

Fairfax, in a statement late on Monday, said it would buy the stake from Paninvest and affiliates in a deal likely to close by year-end.

On Tuesday, AMAG shares rose as much as 15.5 percent to Rp 462 rupiah ($0.035), compared with just 0.7 percent in the broader market.

Fairfax's deal with the Panin Group, controlled by Indonesia's Gunawan family, highlights foreign interest in the Southeast Asian country's general insurance market after a number of deals in recent years in the life insurance segment.

Japan's Sumitomo Life Insurance Co bought 40 percent of the life insurance arm of Bank Negara Indonesia, while compatriot Dai-ichi Life Insurance acquired 40 percent of Panin Life.

Indonesia is an important emerging economy and the AMAG deal is "a great opportunity for us to continue to expand our operations in the region," said Fairfax Chairman and Chief Executive Prem Watsa.

Fairfax did not disclose the transaction value, but a person familiar with the deal said it was around $165 million. The person declined to be identified as the information was not public.

Goldman Sachs advised Fairfax and Barclays advised the Panin Group, people familiar with the matter told Reuters. Both Goldman and Barclays declined to comment.

Fairfax said it would integrate AMAG with its Indonesian subsidiary, and that AMAG would enter a long-term general insurance partnership with Bank Pan Indonesia.

 

[Boss Dragun]

United States` investors to fund startup business in Indonesia

http://www.antaranews.com/en/news/1...vestors-to-fund-startup-business-in-indonesia

Jakarta (ANTARA News) - The Indonesian Capital Investment Coordinating Board (BKPM) has identified that certain venture capital companies of the United States wanted to fund various startup projects or businesses in Indonesia.

Head of BKPM Franky Sibarani said the interest evinced by these companies showed how optimistic these were about the prospects of the digital economy's development in Indonesia.

"They realize the magnitude of Indonesias potential. By 2030, the digital economy sector in Indonesia will be worth US$130 billion," he said here in a press release received by ANTARA on Wednesday.

Sibarani said the efforts to develop the startup business were in line with the development plan of the digital economy in Indonesia.

"More parties coming forward to support startup businesses would mean more prospects for the emerging business sectors," he said.

Besides venture capital companies, Sibarani said several other companies have also expressed interest in investing in some sectors in Indonesia. These included a furniture design company, a manufacturer of footwear and also banks that want to invest in Indonesia.

Earlier, in a working visit to San Francisco city in the United States, Sibarani had explained the potential that Indonesia offers for investors in the United States, the ease of investing in Indonesia, and also the improvements and breakthroughs achieved by the Indonesian government, such as One Stop Service (PTSP), online licensing, investment service guaranteed within three hours, the convenience of construction direct investment (KLIK) and BKPMs smart phone application.

Sibarani was the main speaker at an investment marketing event titled Indonesia-US Business Forum, which was attended by 52 companies of the United States representing the industries of footwear, furniture, information and technology as well as food and beverage.

The Indonesian Consul General in San Francisco City, Ardi Hermawan, also attended the event. The BKPMs representative office in New York continues to coordinate with the local Indonesian representatives to oversee the investment interests of the United States investors.

The BKPM conducted investment marketing initiatives in three major cities of the United States, namely, San Francisco, Chicago and New York.

Marketing Indonesia's potential as an investment destination is one of the important agendas as the government makes efforts to increase the flow of foreign capital into Indonesia.

The United States was classified as a priority country for investment marketing. Based on the BKPMs data in 2015, the realization value of US investment reached US$893 million, covering 261 projects, most of them in the mining sector.

In terms of commitment, the BKPM recorded investment commitments worth US$4.8 billion in 76 projects.



Indonesian bonds attractive amid falling global yields

http://www.thejakartapost.com/news/...ds-attractive-amid-falling-global-yields.html

UK-based bank HSBC sees Indonesian bonds, both sovereign and corporate, as a good option amid the global yield slump.

Recently, global bond yields have declined due to low inflation in developed countries. Concerns about Britain exiting the EU have even driven the yields on some investment-grade bonds, such as German ones, into negative territory.

"The investment price in Indonesia is very cheap now," HSBC global assets management chief investment officer Denis Gould told thejakartapost.com in Jakarta on Wednesday, adding that Indonesian bonds offered interesting returns, as the yield was rather flat and less volatile.

The competitive pricing, he further said, was supported by the rupiah exchange rate, which currently was the most undervalued currency in Asian markets after the Indian Rupee.

Gould added that expected inflation in Indonesia at around 5 percent supported the yield around nine to ten percent this year.

An expected tax amnesty is set to increase government revenue thanks to asset repatriation and higher tax income in the coming years.

 

[Nike]

Medco buys stake in Newmont's parent company for US$2.6 billion

• 
  Anton Hermansyah
  The Jakarta Post
  

Jakarta | Thu, June 30 2016 | 08:42 pm

A woman walks through the Medco Energi Internasional office in Jakarta.(Kontan/Cheppy A. Muchlis)

Indonesian oil and gas company Medco Energi Internasional has completed its acquisition of Newmont Nusa Tenggara's (NNT) parent company from the US-based Newmont Mining Corporation and Japan-based Sumitomo Corporation.

The publicly listed company purchased Amman Mineral International, which had a controlling 82.2 percent share in NNT, for US$2.6 billion. AP Investment and three state owned banks Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia backed Medco to fund the purchase.

"The world-class transaction structure applied by the three state owned banks here will hopefully create more strategic transactions in the future," President Director Hilmy Panigoro said in his press statement in Jakarta on Thursday.

NNT's Batu Hijau mine is the second largest copper and gold mine in Indonesia. This will add significantly to Medco's portfolio. However, the finalization of the transaction will have to wait for shareholder and government's approval.

"Newmont and Sumitomo deserve our gratitude because they have become a role model of international investment that is cooperative and supportive in meeting public aspiration," Medco Commissioner Muhammad Luthfi said. (ags)

 

[Nike]

Indonesia ranked 2nd in top destinations for Muslims
Senin, 4 Juli 2016 20:51 WIB | 1.084 Views

I Gde Pitana. (Kemenparekraf)

Jakarta (ANTARA News) - Indonesia has been ranked second in the list of "Top 20 Destinations for Muslim Travelers in Ramadan 2016," in the Mastercard-Crescent Rating Ramadan Travel Report.

The deputy for overseas tourism marketing of the Ministry of Tourism, I Gde Pitana on Monday hailed the achievement which showed that Indonesia has become a more favorite destination for Muslim travelers.

In the survey carried out by CrescentRating, Malaysia was ranked first.

The survey was carried out to know the 20 favorite destinations for travelers during the 2016 Ramadhan holiday.

The ten top destinations for Muslim travelers, according to the survey, are Malaysia, Indonesia, Singapore, Turkey, Brunei Darussalam, South Africa, Maldives, United Arab Emirates, Iran and Oman.

Pitana said in the past few years, a number of countries have focused on Muslim majority markets and have thus become his offices focus of attention with regard to tapping their potential to boost foreign visitors to Indonesia.

With the recognition, he said, it is hoped Indonesia will be better known among Muslim travelers across the world.

"This is a potential segment that, we hope, will contribute much to achieving the target of foreign tourist arrivals this year," he said.

(Reporting by Hanni Sofia Soepardi/Uu.H-YH/INE/KR-BSR)

 

[skyhigh88]

Indonesia Becomes Asean’s Most-Valuable Emerging Market: Chart
July 14, 20 16 — 6:30 AM SGT
Bloomberg

Indonesia has overtaken Malaysia and Thailand as the biggest emerging market in Southeast Asia.

The combined value of companies traded in Indonesia reached $416 billion this week and has exceeded its neighbors for more than a month, the longest stretch since early 2013.

Although Thailand held the top slot briefly, Malaysia was the leader most of the past three years, but stocks in Asia’s only net oil exporting nation plunged with crude, paving the way for Indonesia’s ascent.

 

[skyhigh88]

Indonesia sukuk beats Malaysia in luring investors fleeing plunging rates
Straitstimes
July 15, 2016


JAKARTA • Indonesia's Islamic bond yields have fallen faster than Malaysia's in the past three months, as its higher-yielding notes do better at attracting investors fleeing plunging rates in the developed world.

Yields on rupiah sukuk due in 2019 slid 39 basis points in the period, compared with 26 basis points for equivalent paper in Malaysia.

Indonesia's three-year Islamic bonds pay 7.21 per cent, while those in Malaysia yield 3.25 per cent. Overseas investors pumped US$6.6 billion (S$8.9 billion) into Indonesian debt as of Tuesday and US$4.9 billion into Malaysian securities in the first six months, data compiled by Bloomberg shows.

"On an absolute basis, Indonesia still offers greater returns as investors chase yield," said RHB Research Institute credit strategist Fakrizzaki Ghazali. "I see limited downside potential for Malaysian sukuk yields."

Indonesian bonds are the best performers in South-east Asia this year after its government passed a tax amnesty Bill on undeclared income held overseas, while a rate cut by Malaysia's central bank on Wednesday helped drive gains there.

Cooling inflation had already given Indonesia scope to ease policy this year as price increases averaged 3.9 per cent during the first half, compared with 2015's 6.38 per cent. After Malaysia's surprise rate cut, the central bank lowered its projection for consumer prices to 2 per cent to 3 per cent this year, from 2.5 per cent to 3.5 per cent.

"The easier monetary policy by the Indonesian central bank since the beginning of the year has clearly helped the rupiah sukuk market," said Mr Johar Amat, head of Treasury at OCBC Al-Amin Bank. "Going forward, the ringgit sukuk market should be supported as Bank Negara Malaysia has started to ease its monetary policy."

Both currencies are seeing a revival. While both countries provided stimulus through infrastructure spending, Malaysia has been dogged by a political scandal involving Prime Minister Najib Razak and a bond default at state investment firm 1Malaysia Development Bhd.

Indonesia's government is speeding up investment in roads and railways amid pressure from President Joko Widodo. "Indonesia's fundamentals are getting better," said Bank Central Asia chief economist David Sumual. "We also see the rupiah as quite stable compared with last year. That's why we see more inflows to rupiah assets."