Capital Markets
From The Report: Indonesia 2012
View in Online Reader
As one of the markets at the forefront of the South-east Asian growth story, Indonesia is seeing a surge of investment attention from capital managers eager to avoid the malaise lingering in developed economies. Indonesia now has a chance to strengthen its capital markets’ offerings, by broadening the options available, fostering a bigger roster of investors and smoothing operations at the country’s exchanges. The Indonesia Stock Exchange (IDX) teamed up with the Asian Development Bank in 2009 to plan improvements to the bourse. The stock market’s profile has been raised through adjustments to the country’s sovereign debt ratings, which Fitch labelled investment grade in December 2011, with Moody’s and Standard & Poor’s expected to follow suit in 2012.
This chapter features an interview with Nurhaida, Chairman, Bapepam.
Articles from this Chapter
New heights: The IDX rallies while the regulator works to increase options for investors and boost transparency
Clear targets: A stronger regulatory framework will promote a stable financial systemOBGplus
The country’s regulator for the capital markets, Bapepam, has developed and carried out a series of master plans that will guide and pace the development of the Indonesia Stock Exchange (IDX) and other local financial platforms. The current master plan, which was introduced in October 2010 and addresses 2010-14 period, begins with a reflection on the financial crisis and how it has served as a reminder of the importance of market regulation and supervision. “The first line of defence in preventing…
Nurhaida, Chairman, Bapepam: InterviewOBGplus
Interview:Nurhaida What priorities are outlined in the 2010-14 master plan to help Indonesia sustain development? NURHAIDA: Our five-year plan gives us the opportunity to embark on long-term strategies and ambitious projects. We have identified five major goals as part of our capital market blueprint. One of the main priorities is to see straight-through processing implemented as one of our business process reforms in the Indonesian capital market by the end of 2011. We would like to see…
In the mix: Investor appetite for Indonesian bonds continuesOBGplus
At the forefront of a regional wave of bond sales in 2010, Indonesia continued to enjoy a similar trend in 2011, with several major sales during the year. Moreover, Indonesia’s sovereign debt rating was increased to investment grade in December 2011, which could lower the cost of funds. That should be the catalyst needed to deepen markets for primary corporate debt sales, secondary trading and sub-regional government issuances. STRONG DEMAND: While in the past there have been concerns about…
Aneka Tambang: Mining & metalsOBGplus
THE COMPANY: Aneka Tambang (ANTM) is a vertically integrated, export-oriented, diversified mining and metal company in Indonesia. It is a state-owned enterprise in which the government is a majority shareholder, with 65% of the shares. The remaining 35% shares belong to public investors. The company does exploration, exploitation, production and trading for its main metal products. The company has a mining operation spread throughout the Indonesian archipelago. ANTM produces metal products composed of highgrade nickel ore, known as saprolite, low-grade nickel ore, also known as limonite, ferronickel, gold, silver and bauxite. In addition,…
XL Axiata: TelecommunicationsOBGplus
THE COMPANY: The Report: Indonesia 2010 indicated that XL Axiata’s (EXCL) positive growth in the first half of 2010 would provide a clear picture of the company’s future. On the back of strategic initiatives, EXCL recorded revenue increases in 2010, which helped to improve share values. EXCL’s total revenues for 2011 grew 27.1% year-on-year (y-o-y) to Rp17.63trn ($2.12bn) compared to 2010. Voice calls contributed 47.95% to total revenue, equalling Rp8.45trn ($1.01bn). SMS revenue was 19.71% of EXCL’s total, earning Rp3.47trn ($416.4m). Promotional tariff plans, tariff optimisation and a number of SMS promotional programmes helped…
Kalbe Farma: PharmaceuticalsOBGplus
THE COMPANY: In line with expectations, Kalbe Farma (KLBF) reported increased earnings in the first half of 2011. Sales grew approximately 5.14% year-on-year (y-o-y) to Rp4.94trn ($592.8m). This figure is equal to around 44.07% of the full-year projection of Rp11.22trn ($2.38bn). Pharmaceutical packaging and distribution remained the major contributor to revenue, making up 30.31% of KLBF’s total revenue in the first half of 2011. Prescription pharmaceuticals followed close behind, contributing around 28.02%, equal to Rp1.38trn ($165.6m). Rounding out the list, nutritionals were 22.84 % of total revenue in the same period, and the consumer…
Agung Podomoro Land: Real estateOBGplus
THE COMPANY: Agung Podomoro Land develops, manages and rents integrated properties, which include apartments, houses, hotels, offices, stores, shopping centres and entertainment centres, supported by its facilities through the company and its subsidiaries. The company carries a bond issuance worth approximately Rp1.2trn ($144m). This bond is divided at Rp325bn ($39m) and Rp875bn ($105m), respectively. All of the proceeds will be used for Agung Podomoro’s business expansion through the acquisition of property companies located in Jakarta, Bali and possibly Bogor. Agung Podomoro is looking to acquire property companies that are selling or…
AKR Corporindo: DistributionOBGplus
THE COMPANY: AKR Corporindo (AKRA) is the largest private distributor of petroleum products and basic chemicals in Indonesia, with an extensive logistics and supply network, covering 15 sea and river ports. Five of the river ports have storage tank terminals with more than 543.14 kl. AKRA serves customers in the mining, power plant, industrial and bunker sectors. In January 2011 AKRA succeeded in divesting all of its shares in Sorini Agro, totalling around Rp2.2trn ($264m). As a result of the divestment, AKRA has placed itself in a net cash position. Additionally, AKRA’s total amount of interest-bearing debt reduced significantly. With…
Jasa Marga: Toll roadsOBGplus
THE COMPANY: Jasa Marga, established in 1978, was the first toll-road operator in Indonesia. The company is the market leader of toll road operators, managing approximately 532 km, or 72%, of toll roads in the country. Jasa Marga is currently in the process of developing another 200 km of toll roads. Operations are expected to begin gradually between 2011 and 2014. DEVELOPMENT STRATEGY: At present Jasa Marga’s development plans are in the land acquisition phase. Jasa Marga has already completed the construction of the Semarang to Ungaran phase, which will be the first section of the Semarang-Bawen toll road. Jasa Marga has also completed…
