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SINGAPOREAN COMPANY TO ACQUIRE KERTAS BASUKI. Fund manager firm based in Singapore headed by former chief of the defunct Indonesian  Restructuring Agency (IBRA)  Glen Mohammad Surya Yusuf, plans to acquire the majority stake in paper producer PT Kertas Basuki Rachmat Indonesia Tbk. Tiur Simamora, the corporate secretary of Kertas Basuki, said the parent company of   PT Kertas Basuki Rachmat Indonesia Tbk  and PT Kertas Blaak Magelang , also a paper  producrr, and PT HTI Basuki Rachmat, an industrial timber estate (HTI) company,  will hold an annual shareholders' meeting with an agenda to replace its boards of directors and commissioners. The change in the management  will mark the involvement of the  strategic investor  from Singapore.  The shareholders of Kertas Basuki  by  April 2010 included Adam Ariaji as a 28.13% shareholder, PT Malindo Nusantara Cemerlang a 24.87% owner, former owner of PT Energi Mega Persada Tbk Rennier A.R. Latief 13.97%,  and investing public  33.03%. Meanwhile,  M Said Didu , the secretary of the office of the minister for state enterprises, said the government would divest  a 0.38% stake in PT Kertas Basuki.

BAKRIE TO WRAP UP ACQUISITION OF DOMAS AGROINTI. PT Bakrie Sumatra Plantations Tbk  said it will soon wrap up the process of acquisition of PT Domas Agrointi Prima at a price of  Rp 1.1 trillion. The price does not include debts of Domas that have to be settled by the subsidiary of the Bakrie Group. Domas is a group of companies all operating in oleochemcal industry. After the acqusition Bakrie Plantations will have to restructure all of the debts that include Bank Mandiri US$ 78 million, Credit Suisse US$ 151 million  and cosmetic producer P&G  US$ 40 million. The subsidiary of the Bakrie Group said the oleo-chemical factories  of Domas  are expected  to   resume  operation in  September.   A technical team has been sent to factory locations in Kuala Tanjung and Tanjung Morawa in North Sumatra to ensure that the facilities could operate as scheduled,  a company's  executive said.    The facilities   including  fatty alcohol ,   fatty acid , cooking oil  and palm kernel processing factories, have  long been lying idle  under financially troubled Domas .    The entire oleochemical  products already have buyers  such as Procter & Gamble which will buy fatty alcohol fatty acid and glycerin.   The facilities  will become  one of the country's largest integrated oleo-chemical industry .


GAJAH TUNGGAL TO INVEST US$ 50 MILLION. PT Gajah Tunggal Tbk, the largest tire producer in Southeast Asia  will invest US$50 million until next year to expand its production capacity. The capacity expansion plan is prompted by growing trend of demand for  tires. The investment is part of a US$180 million plan to expand the production capacity of its factory in Tangerang, Banten, to be implemented by phases since five years ago. Vice President Director and Chief Operation Officer of PT Gajah Tunggal Tbk Buddy Tanasaleh said the project is progressing and is expected to be completed  by the end of next year.


PERTAMINA ACQUIRES  15% STAKE IN SEMAI II BLOCK . PT Pertamina has acquirted a 15% stake in  Semai II block off the southern coast of  West Papua . Upstream director of PT Pertamina Bagus Setiardja  said an acquisition agreement was already signed  on June 17, 2010 and the formality of the acquisition is being processed by the Upstream Oil and Gas Regulator (BP Migas)  and the Oil and Gas Directorate General. The agreement was signed by Pertamina, PT Pertamina  Hulu Energi, Murphy Oil Corp, Inpex Corp,  and  PTT EP Thailand.  Under the agreement Pertamina will provide US$149.5 million to help finance the operation. With the 15% take ove rby Pertamina, the shares of three old shareholders -  Murphy, PTT EP,  and  Inpex - will be cut by 5 percentage  from 33.3% to 28.3% each. The produciton sharing contract with the three old shareholders was signed  with the government in November, 2008 with  Murphy as the  operator.

JAMSOSTEK TO ACQUIRE 20% STAKE IN BUKOPIN. State-owned workers' insurance company PT Jamsostek said it has prepared Rp500 billion to acquire a 20% stake in PT Bank Bukopin Tbk. Jamsostek will acquire the stake from Yayasan Bina Kesejahteraan Warga Bulog (Yanatera Bulog) and the government.  The acquisition plan is now in the process of due diligence study. Jamsostek's President Hotbonar Sinaga said the company has named Mandiri Sekuritas to help in the process of acquisition. Sinaga said  Jamsostek  could use the bank's networks  including BPR Swamitra to help in its expansion program.   There are 560  units of BPR Swasmitra having business ties with Bukopin . Currently Bukopin is 42.71% owned by Koperasi Pegawai Bulog Seluruh Indonesia (Kopelindo), 17.32% by the government, 12.19% by  Yanatera Bulog, 6.7% by  Koperasi Perkayuan Apkindo  and 20.99% by investing  public .

FIRST MEDIA TO DEVELOP WIMAX. PT First Media Tbk will invest US$ 350 million to developm high speed wireless internet service based on the technology  of Worldwide Interoperability for Microwave Access (Wimax)  in  10 years. So far the company  already spent US$50 million , Hengkie Liwanto, the president of First Media said.  Wimax technology is  the 4th generation (G4) of wireless  internet broadband service. Wimax constitutes a set of customer premise equipment (CPE)  and  base station prepared by  PT Teknologi Riset Global (TRG)  passing trial operation test  by the Post and Telecommunications Directorate General in mid June, 2010. The company, therefore,  could start commercial operation fully . It is set to have 100,000-150,000 subscribers in the first year of operatiton starting June 2011.  The number is forecast to rise to 500,000  in the third year and to 1 million in 2015.  Potential subscribers in Jakarta alone is around 5 million. The market share will depend on the prices of Wimax equipment. A unit of  CPE at present  is priced at US$ 200. The price is expected to be reduced with the  advancing technology.



CORPORATE NEWS IN BRIEF
June 2010
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