Author: Editor

Kobex Signs MoU to Acquire Nickel Concession in Sulawesi

Posted by | January 5, 2012 | , , | 0 |

VANCOUVER (Indonesia Today) ??? ??Kobex Minerals Inc. signs a Memorandum of Understanding (MoU) with Geologic Systems Ltd to ??get the rights to acquire 85% indirect interest in a nickel laterite concession in Sulawesi. Geologic Systems has the exclusive right to negotiate by Nov 20, 2012 a definitive agreement with PT Asia Pacific Mining Resources (APMR) for the acquisition of an 85% indirect interest in PT Citra Lampia Mandiri (CLM). CLM holds an exploration and an exploitation licence (IUP) on the Lampia property totaling about 10,000 hectares. The Lampia property has in excess of 676 drillholes, indicating the near surface presence of nickel rich limonite and saprolite horizons. Development of the property had commenced anticipating the export of unprocessed ore but was halted with the enactment in May 2012 of Mining Regulations restricting exports to domestically processed value-added products. ???Prior to these export restrictions Indonesia was a significant supplier of nickel laterite ore to China for use as feedstock in the production of nickel pig iron, a low nickel grade iron alloy used extensively in China for the production of stainless...

Read More

Govt to Spend US$2.2 Billion for Officers’ Travel

Posted by | January 5, 2012 | , , | 0 |

JAKARTA (Indonesia Today) – Independent Forum for Budget Transparency (FITRA) believes government’s budget for business travel of Rp21 trillion or about US$2.2 billion for 2013 is way too big. Government should cut the travel expenses to somewhere around US$1 billion. Uchok Sky Khadafi, advocation coordinator at FITRA, said the budget can be reduced more than half to Rp10 trillion. The Rp21 trillion cost is mostly due to the habit of Indonesian officers in sending a big group of people to attend workshop or...

Read More

Fitch Rates Sarana Multigriya MTNs ‘F1+(idn)’

Posted by | January 5, 2012 | , | 0 |

SINGAPORE (Indonesia Today) – Fitch Ratings has assigned Indonesia-based PT Sarana Multigriya Finansial’s (Persero) (SMF; ‘AA(idn)’/Stable) issue of senior unsecured medium-term notes (MTNs) IV 2012 of up to a maximum IDR800bn, a National Short-Term ‘F1+(idn)’ rating. The MTNs have a short-term maturity of 180 days. The proceeds from the proposed issue will be used to support the company’s business growth. The rating of the MTNs are aligned with SMF’s National Short-Term ‘F1+(idn)’ rating. The ratings of SMF reflect Fitch’s view of strong support from central government (‘BBB-‘/Stable), in case of need, given its 100% state ownership and its policy role in developing a secondary mortgage market in Indonesia. SMF was established by the government of Indonesia in 2005 and is regulated and supervised by the Ministry of Finance. (Indonesia...

Read More

Truba Shares Trading Resumed

Posted by | January 5, 2012 | , , | 0 |

JAKARTA (Indonesia Today) – Indonesia Stock Exchange (IDX) has lifted suspension in the trading of Truba Alam Manunggal (TRUB) shares. Trading will resume this morning, Friday Sept 14 after more than two months of suspension. IDX halted the trading of Truba shares since July 2nd, 2012 for the delay in releasing first quarter 2012 financial statement. Truba has recently released the first quarter 2012 financial statement, wherein Truba reported net profit of Rp30.69 billion against Rp3.3 billion in the corresponding period of 2011. Truba generated sales revenue of Rp357.6 billion in the first quarter, slashed by 40.5% from the same period last year. Its gross profit also declined to Rp36.9 billion from Rp45.6 billion in the first quarter of 2011. As of March 31, 2012, the engineering firm had total assets of Rp3.68 trillion, of which liabilities reached Rp2.35 trillion, while equity at Rp1.33 trillion. (Indonesia Today)...

Read More

Moody’s: Chandra Asri’s Bond Buyback Plan Will Be Credit Positive

Posted by | January 5, 2012 | , , | 0 |

SINGAPORE (Indonesia Today) – Moody’s Investors Service says Chandra Asri Petrochemical Tbk’s (B2 negative) buyback of its outstanding USD184.9 million senior secured guaranteed notes, if successful, will be credit positive. The tender offer for the notes will close on 3 October. In conjunction with the offer, Chandra Asri Petrochemical (CAP) solicited the consent for certain amendments to the terms of the bonds, including the ability to incur additional secured debt, the release of security, and the ability to redeem notes that remain outstanding after the tender offer. “The redemption of the notes and the consent solicitation, if successful, will significantly lower the company’s interest expense, which will increase the headroom under the maintenance covenants in its USD150 million bank loan,” says Vikas Halan, a Moody’s Vice President and Senior Analyst. “As a result, the company will have more financial flexibility to take on additional debt to fund its working capital needs and execute its strategic expansion,” he adds. Given the weak operating environment and low naphtha-ethylene spreads, CAP has no headroom under its debt incurrence test to assume further debt that is required to supplement the expected weak cash flow over the next year. For the 12 months ended June, the company generated EBITDA of only USD22 million, which is just about 1% of its revenue. CAP plans to fund the buyback with new bank loans and has entered...

Read More