JAKARTA - Indonesia's fourth-largest lender, PT Bank Negara Indonesia Tbk (BBNI.JK), said on Monday it expects to spin off its Islamic banking unit in the first half of 2009 in a bid to tap growing demand for Islamic financial products.
As the world's most-populous Muslim country, Indonesia has been developing its Islamic financial market, with various sharia-compliant investment products.
The daily newspaper Kompas reported on Monday that banks will have to allocate a minimum of 500 billion rupiah ($43 million), or half the amount currently required, in paid-up capital if they spin off their sharia banking units as separate entities.
Bank Indonesia, the central bank, is expected to issue the new ruling in March, Kompas reported, citing Ramzi A Zuhdi, a central bank director in charge of sharia banking.
Central bank officials could not be reached for comment.
"With the expected new ruling, there is a possibility to accelerate" the spin-off of the sharia unit, Ismi Kushartanto, head of BNI's sharia unit, told Reuters.
Under sharia or Islamic law, interest is banned and income must be derived from a fundamental economic transaction such as trade in goods and services, direct investment in a business, or renting out property.
Last month, Bank Indonesia predicted that sharia banks would account for 3 percent of total banking industry assets in 2009, compared with 47 trillion rupiah in 2008, or 2.1 percent of total banking assests.
Indonesia had five sharia banks and 28 commercial banks with sharia units at the end of 2008, according to central bank data. 9th February 2009 (Reuters)
Monday, February 9, 2009
Indonesia corp bond issuance seen up a third-agency
JAKARTA, Feb 9 (Reuters) - Indonesian corporate bond issuances may rise to as much as 15 trillion rupiah ($1.3 billion) this year, or up about a third on 2008, helped by falling interest rates and as banks provide fewer loans, the president of local rating agency Pefindo said on Monday.
A growing number of Indonesian companies have expressed interest in issuing bonds to finance maturing debt and fund investment.
"We think the amount may be around 10 to 15 trillion rupiah. Some of the issuers are banks, but issuers from non-financial institutions are increasing," Kahlil Rowter, president director of PT Pemeringkat Efek Indonesia (Pefindo), told Reuters.
Corporate bond issuance last year was estimated at about 11 trillion rupiah, Rowter said, adding that bonds issued this year were likely to be mainly five-year maturity, although some could be shorter depending on the liabilities of the issuers.
Indonesia's central bank cut interest rate by 50 basis points to 8.25 percent last week and indicated it could lower them further to support growth.
Bank Indonesia has cut rates for three consecutive months from 9.5 percent in December.
The central bank had also forecast growth in bank lending will slow to 18-20 percent this year, down from an estimated 30 percent in 2008, given a squeeze on credit triggered by the global economic crisis.
Last month, construction firm PT Waskita karya said it aimed to raise 500 billion rupiah on the bond market in the second half of 2009 to increase working capital.
Indonesian home lender PT Bank Tabungan Negara (BTN) also said it aimed to issue 1.5 trillion rupiah in 10-year bonds in 2009 to refinance maturing debt and boost lending.
A growing number of Indonesian companies have expressed interest in issuing bonds to finance maturing debt and fund investment.
"We think the amount may be around 10 to 15 trillion rupiah. Some of the issuers are banks, but issuers from non-financial institutions are increasing," Kahlil Rowter, president director of PT Pemeringkat Efek Indonesia (Pefindo), told Reuters.
Corporate bond issuance last year was estimated at about 11 trillion rupiah, Rowter said, adding that bonds issued this year were likely to be mainly five-year maturity, although some could be shorter depending on the liabilities of the issuers.
Indonesia's central bank cut interest rate by 50 basis points to 8.25 percent last week and indicated it could lower them further to support growth.
Bank Indonesia has cut rates for three consecutive months from 9.5 percent in December.
The central bank had also forecast growth in bank lending will slow to 18-20 percent this year, down from an estimated 30 percent in 2008, given a squeeze on credit triggered by the global economic crisis.
Last month, construction firm PT Waskita karya said it aimed to raise 500 billion rupiah on the bond market in the second half of 2009 to increase working capital.
Indonesian home lender PT Bank Tabungan Negara (BTN) also said it aimed to issue 1.5 trillion rupiah in 10-year bonds in 2009 to refinance maturing debt and boost lending.
Wednesday, February 4, 2009
Barclays completes acquisition of Bank Akita
JAKARTA-
UK-based Barclays has completed the acquisition of Bank Akita, which was announced initially in September 2008, following the approval of the Central Bank of Indonesia.
Barclays said that Akita will form part of Barclays global retail and commercial banking (GRCB) emerging markets business.
Barclays intends to rebrand Akita as Barclays Bank Indonesia, at an appropriate date, subject to the necessary approvals.
Following the acquisition, and subject to regulatory approval, Samir Gupta has been nominated as the managing director of Barclays Bank Indonesia and will report to Ahmed Khan, CEO of Barclays GRCB emerging markets. Prior to this appointment, Mr Gupta held the position of retail director for Barclays GRCB emerging markets.
Mr Khan said: "The acquisition of Akita is an excellent fit with Barclays strategy of increasing its presence, over time, in emerging markets with good growth characteristics. Indonesia is a very attractive market, with the fourth largest population in the world, strong economic growth and a low penetration of banking products. It is an exciting opportunity, not just for Barclays, but for the Indonesian consumer who will have access to the global scale and skills of one of the world's leading universal banks."
UK-based Barclays has completed the acquisition of Bank Akita, which was announced initially in September 2008, following the approval of the Central Bank of Indonesia.
Barclays said that Akita will form part of Barclays global retail and commercial banking (GRCB) emerging markets business.
Barclays intends to rebrand Akita as Barclays Bank Indonesia, at an appropriate date, subject to the necessary approvals.
Following the acquisition, and subject to regulatory approval, Samir Gupta has been nominated as the managing director of Barclays Bank Indonesia and will report to Ahmed Khan, CEO of Barclays GRCB emerging markets. Prior to this appointment, Mr Gupta held the position of retail director for Barclays GRCB emerging markets.
Mr Khan said: "The acquisition of Akita is an excellent fit with Barclays strategy of increasing its presence, over time, in emerging markets with good growth characteristics. Indonesia is a very attractive market, with the fourth largest population in the world, strong economic growth and a low penetration of banking products. It is an exciting opportunity, not just for Barclays, but for the Indonesian consumer who will have access to the global scale and skills of one of the world's leading universal banks."
BI Announces Measures to Relax Banks’ Lending Rules
JAKARTA-
Indonesia’s central bank on Friday announced a set of measures to help banks keep the country’s economy growing in the difficult financial climate, including plans to boost their ability to lend to the nation’s small businesses.
Bank Indonesia also warned that 15 banks had about $4 billion of exposure to risky speculative investments, which it said were damaging the economy.
Muliaman D. Hadad, a BI deputy governor, speaking after a bankers’ meeting on Friday evening, said that it was important to maintain banks’ financing capacity, especially to small and medium enterprises, or SMEs, that he said would become the backbone of the economy in the crisis.
“We don’t want the banks’ ability to lend to decrease or this will become a barrier to the [government’s] target of 4 to 5 percent economic growth for this year,” Muliaman said.
The central bank has already lowered the standards for banks to measure the risk on loans, or the risk-weighted ratio, for SMEs to enable lenders to provide more loans to businesses with the same amount of capital.
Muliaman said BI was now giving banks more latitude to gauge the credit-worthiness of small businesses. Under the new policy, the risk calculation for SME loans of Rp 1 billion ($88,000) to Rp 20 billion would be based on a general assessment of a debtor’s cash flow to determine whether it had the ability to repay the loan.
“Before this, the risk calculation also included the debtor’s business prospects and financial performance,” Muliaman said “Banks must have a strong risk control system and a good capital adequacy ratio to use these new incentives.”
To prevent losses from speculation in derivatives and other exotic offshore investment products sold by domestic banks, BI will require lenders to report these instruments before bringing them to market.
“They should also explain their target market. We demand that only sophisticated customers be offered such products,” said Budi Mulia, another BI deputy governor.
Budi said that 15 banks currently had about $4 billion of exposure in speculative products. These investments were encouraging people to buy US dollars and were putting the rupiah — and the economy — under pressure, he said.
BI also eased requirements for bank mergers. Banks are required only to announce an acquisition and merger once and undergo a single fit-and-proper test, not two as before.
Agus Martowardojo, president director of state-owned PT Bank Mandiri Tbk, welcomed the new measures as “responding to bankers’ needs.”But he also said that more regulations could be relaxed, citing a regulation that barred cross-ownership of banks and another limiting the kinds of businesses banks could invest in.
By relaxing the rules, “bankers can move more confidently,” he said.
Indonesia’s central bank on Friday announced a set of measures to help banks keep the country’s economy growing in the difficult financial climate, including plans to boost their ability to lend to the nation’s small businesses.
Bank Indonesia also warned that 15 banks had about $4 billion of exposure to risky speculative investments, which it said were damaging the economy.
Muliaman D. Hadad, a BI deputy governor, speaking after a bankers’ meeting on Friday evening, said that it was important to maintain banks’ financing capacity, especially to small and medium enterprises, or SMEs, that he said would become the backbone of the economy in the crisis.
“We don’t want the banks’ ability to lend to decrease or this will become a barrier to the [government’s] target of 4 to 5 percent economic growth for this year,” Muliaman said.
The central bank has already lowered the standards for banks to measure the risk on loans, or the risk-weighted ratio, for SMEs to enable lenders to provide more loans to businesses with the same amount of capital.
Muliaman said BI was now giving banks more latitude to gauge the credit-worthiness of small businesses. Under the new policy, the risk calculation for SME loans of Rp 1 billion ($88,000) to Rp 20 billion would be based on a general assessment of a debtor’s cash flow to determine whether it had the ability to repay the loan.
“Before this, the risk calculation also included the debtor’s business prospects and financial performance,” Muliaman said “Banks must have a strong risk control system and a good capital adequacy ratio to use these new incentives.”
To prevent losses from speculation in derivatives and other exotic offshore investment products sold by domestic banks, BI will require lenders to report these instruments before bringing them to market.
“They should also explain their target market. We demand that only sophisticated customers be offered such products,” said Budi Mulia, another BI deputy governor.
Budi said that 15 banks currently had about $4 billion of exposure in speculative products. These investments were encouraging people to buy US dollars and were putting the rupiah — and the economy — under pressure, he said.
BI also eased requirements for bank mergers. Banks are required only to announce an acquisition and merger once and undergo a single fit-and-proper test, not two as before.
Agus Martowardojo, president director of state-owned PT Bank Mandiri Tbk, welcomed the new measures as “responding to bankers’ needs.”But he also said that more regulations could be relaxed, citing a regulation that barred cross-ownership of banks and another limiting the kinds of businesses banks could invest in.
By relaxing the rules, “bankers can move more confidently,” he said.
BI Announces Measures to Relax Banks’ Lending Rules
JAKARTA-
Indonesia’s central bank on Friday announced a set of measures to help banks keep the country’s economy growing in the difficult financial climate, including plans to boost their ability to lend to the nation’s small businesses.
Bank Indonesia also warned that 15 banks had about $4 billion of exposure to risky speculative investments, which it said were damaging the economy.
Muliaman D. Hadad, a BI deputy governor, speaking after a bankers’ meeting on Friday evening, said that it was important to maintain banks’ financing capacity, especially to small and medium enterprises, or SMEs, that he said would become the backbone of the economy in the crisis.
“We don’t want the banks’ ability to lend to decrease or this will become a barrier to the [government’s] target of 4 to 5 percent economic growth for this year,” Muliaman said.
The central bank has already lowered the standards for banks to measure the risk on loans, or the risk-weighted ratio, for SMEs to enable lenders to provide more loans to businesses with the same amount of capital.
Muliaman said BI was now giving banks more latitude to gauge the credit-worthiness of small businesses. Under the new policy, the risk calculation for SME loans of Rp 1 billion ($88,000) to Rp 20 billion would be based on a general assessment of a debtor’s cash flow to determine whether it had the ability to repay the loan.
“Before this, the risk calculation also included the debtor’s business prospects and financial performance,” Muliaman said “Banks must have a strong risk control system and a good capital adequacy ratio to use these new incentives.”
To prevent losses from speculation in derivatives and other exotic offshore investment products sold by domestic banks, BI will require lenders to report these instruments before bringing them to market.
“They should also explain their target market. We demand that only sophisticated customers be offered such products,” said Budi Mulia, another BI deputy governor.
Budi said that 15 banks currently had about $4 billion of exposure in speculative products. These investments were encouraging people to buy US dollars and were putting the rupiah — and the economy — under pressure, he said.
BI also eased requirements for bank mergers. Banks are required only to announce an acquisition and merger once and undergo a single fit-and-proper test, not two as before.
Agus Martowardojo, president director of state-owned PT Bank Mandiri Tbk, welcomed the new measures as “responding to bankers’ needs.”But he also said that more regulations could be relaxed, citing a regulation that barred cross-ownership of banks and another limiting the kinds of businesses banks could invest in.
By relaxing the rules, “bankers can move more confidently,” he said.
Indonesia’s central bank on Friday announced a set of measures to help banks keep the country’s economy growing in the difficult financial climate, including plans to boost their ability to lend to the nation’s small businesses.
Bank Indonesia also warned that 15 banks had about $4 billion of exposure to risky speculative investments, which it said were damaging the economy.
Muliaman D. Hadad, a BI deputy governor, speaking after a bankers’ meeting on Friday evening, said that it was important to maintain banks’ financing capacity, especially to small and medium enterprises, or SMEs, that he said would become the backbone of the economy in the crisis.
“We don’t want the banks’ ability to lend to decrease or this will become a barrier to the [government’s] target of 4 to 5 percent economic growth for this year,” Muliaman said.
The central bank has already lowered the standards for banks to measure the risk on loans, or the risk-weighted ratio, for SMEs to enable lenders to provide more loans to businesses with the same amount of capital.
Muliaman said BI was now giving banks more latitude to gauge the credit-worthiness of small businesses. Under the new policy, the risk calculation for SME loans of Rp 1 billion ($88,000) to Rp 20 billion would be based on a general assessment of a debtor’s cash flow to determine whether it had the ability to repay the loan.
“Before this, the risk calculation also included the debtor’s business prospects and financial performance,” Muliaman said “Banks must have a strong risk control system and a good capital adequacy ratio to use these new incentives.”
To prevent losses from speculation in derivatives and other exotic offshore investment products sold by domestic banks, BI will require lenders to report these instruments before bringing them to market.
“They should also explain their target market. We demand that only sophisticated customers be offered such products,” said Budi Mulia, another BI deputy governor.
Budi said that 15 banks currently had about $4 billion of exposure in speculative products. These investments were encouraging people to buy US dollars and were putting the rupiah — and the economy — under pressure, he said.
BI also eased requirements for bank mergers. Banks are required only to announce an acquisition and merger once and undergo a single fit-and-proper test, not two as before.
Agus Martowardojo, president director of state-owned PT Bank Mandiri Tbk, welcomed the new measures as “responding to bankers’ needs.”But he also said that more regulations could be relaxed, citing a regulation that barred cross-ownership of banks and another limiting the kinds of businesses banks could invest in.
By relaxing the rules, “bankers can move more confidently,” he said.
Bosowa Power Plant Project Postponed As China Development Bank Pulls Out
JAKARTA-
PT Bosowa Corp., the largest diversified business group in eastern Indonesia, said on Friday that it has postponed a $200 million, 250-megawatt coal-fired power plant project in South Sulawesi Province because China Development Bank was “having problems” with financing the project.
“The current global liquidity crisis has affected the venture,” said Erwin Aksa, Bosowa’s chief executive. “We are struggling to find investors to finance it after the China Development Bank postponed its investment.”
Late last year, Bosowa told the Jakarta Globe that the project — part of the government’s “fast-track” generating capacity expansion program — was going ahead, and that its main financier, the China Development Bank, was committed to it. The power plant, if constructed, will be the biggest in eastern Indonesia.
The delay is likely to cause problems for state power utility PLN, which is targeting 10,000 MW of new generating capacity as part of the first stage of the fast-track program, which is scheduled for completion by the end of this year. All of the planned new plants are coal fired.
Erwin said the project had to date only secured about $50 million in financing from PT Bank Rakyat Indonesia Tbk, with between $140 million and $150 million still needed.
The plant, located in Jeneponto district, South Sulawesi, is likely to be delayed until 2011 or 2012, Erwin said. “Our investor postponed the project as it is struggling for liquidity and PLN is paying a very low price for the electricity, which convinced them that the project would not be viable,” Erwin said, adding that local and international commercial banks were charging high interest rates, which made it difficult for Bosowa to find other investors.
“We’re currently looking for new investors, both local and international, although we’re still negotiating with the Chinese bank to see if we can change their minds,” Erwin said.
Bosowa is has interests in the construction, finance and automotive sectors. The group, based in Makassar, South Sulawesi, is owned by tycoon and politician Aksa Mahmud, the brother-in-law of Vice President Jusuf Kalla.
Erwin said he also doubted that financing for a number of other independent power projects would be finalized this year. Forty-three independent producers are currently contracted to build plants with a capacity of about 5,700 MW. A total of 44 plants are involved.
The government plans to soon increase the tariffs paid to IPPs for the electricity they produce by up to 63 percent to encourage more investment in the sector.
PT Bosowa Corp., the largest diversified business group in eastern Indonesia, said on Friday that it has postponed a $200 million, 250-megawatt coal-fired power plant project in South Sulawesi Province because China Development Bank was “having problems” with financing the project.
“The current global liquidity crisis has affected the venture,” said Erwin Aksa, Bosowa’s chief executive. “We are struggling to find investors to finance it after the China Development Bank postponed its investment.”
Late last year, Bosowa told the Jakarta Globe that the project — part of the government’s “fast-track” generating capacity expansion program — was going ahead, and that its main financier, the China Development Bank, was committed to it. The power plant, if constructed, will be the biggest in eastern Indonesia.
The delay is likely to cause problems for state power utility PLN, which is targeting 10,000 MW of new generating capacity as part of the first stage of the fast-track program, which is scheduled for completion by the end of this year. All of the planned new plants are coal fired.
Erwin said the project had to date only secured about $50 million in financing from PT Bank Rakyat Indonesia Tbk, with between $140 million and $150 million still needed.
The plant, located in Jeneponto district, South Sulawesi, is likely to be delayed until 2011 or 2012, Erwin said. “Our investor postponed the project as it is struggling for liquidity and PLN is paying a very low price for the electricity, which convinced them that the project would not be viable,” Erwin said, adding that local and international commercial banks were charging high interest rates, which made it difficult for Bosowa to find other investors.
“We’re currently looking for new investors, both local and international, although we’re still negotiating with the Chinese bank to see if we can change their minds,” Erwin said.
Bosowa is has interests in the construction, finance and automotive sectors. The group, based in Makassar, South Sulawesi, is owned by tycoon and politician Aksa Mahmud, the brother-in-law of Vice President Jusuf Kalla.
Erwin said he also doubted that financing for a number of other independent power projects would be finalized this year. Forty-three independent producers are currently contracted to build plants with a capacity of about 5,700 MW. A total of 44 plants are involved.
The government plans to soon increase the tariffs paid to IPPs for the electricity they produce by up to 63 percent to encourage more investment in the sector.
PLN Gets $378m in Syndicated Loans
JAKARTA
State electricity firm PT Perusahaan Listrik Negara said on Friday that it has secured syndicated loans worth about Rp 4.3 trillion ($378.4 million) to finance the building of power plants across the country in a bid to meet the growing domestic demand for electricity.
As part of its “fast-track” power generation program, PLN has signed three loan agreements with state and local government-owned banks, including the country’s fourth largest lender, PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk and local development banks, or BPDs.
“The success of the negotiation process and the approval of a loan facility to PLN from syndicated banks show strong support from the national banks and the government [of the program],” said Fahmi Mochtar, president director of PLN. The fast-track program aims add 10,000 megawatts of coal-fired power generation by 2010.
The loans, which will finance 85 percent of the projects, will mature in 10 years with a three-year grace period and a floating rate based on the Jakarta interbank rate, or Jibor.
“Until now the [electricity] demand in the market is much higher than the current capacity of PLN to supply consumers,” said Gatot M. Suwondo, president director of PT Bank Negara Indonesia.
The first agreement that PLN signed was a syndicated loan of Rp 1.1 trillion with BNI and BRI to finance a coal-fired power plant project in Tanjung Awar-Awar, East Java Province, consisting of two power plants with a 350 MW capacity each.
The second agreement was with BRI and BPDs from districts in Jakarta, Papua, South Kalimantan and South Sumatra provinces for another Rp 1.1 trillion-worth of loans to help finance six power plants in Bangka Belitung Islands, South Kalimantan Province, and Papua Island.
The remaining Rp 2.1 trillion will be used to construct eight power plants with the capacity to generate a total of 310 MW. The plants will be constructed in the Sulawesi, Kalimantan, Papua and Sumatra Islands.
Bloomberg reported on Friday that PLN may cut coal buying costs by 38 percent to Rp 500,000 a ton, from around Rp 700,000 to Rp 800,000 a ton last year, due to softening energy prices.
Last week, Jacobus Purwono, director general of electricity at the Ministry of Energy, said PLN would pay Rp 750,000 for a ton of coal. However, Jacobus said that the earlier estimated coal price was made when the oil assumption was at $80 per barrel, while the ministry is now proposing the oil assumption to be between $40 to $60.
PLN estimates that it would consume 34 million of coal this year, about 13 percent more than last year, Nasri Sebayang, PLN’s head of primary fuels said, as quoted by Bloomberg. PLN hasn’t priced all the coal it will use, he said, without elaborating further.
State electricity firm PT Perusahaan Listrik Negara said on Friday that it has secured syndicated loans worth about Rp 4.3 trillion ($378.4 million) to finance the building of power plants across the country in a bid to meet the growing domestic demand for electricity.
As part of its “fast-track” power generation program, PLN has signed three loan agreements with state and local government-owned banks, including the country’s fourth largest lender, PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk and local development banks, or BPDs.
“The success of the negotiation process and the approval of a loan facility to PLN from syndicated banks show strong support from the national banks and the government [of the program],” said Fahmi Mochtar, president director of PLN. The fast-track program aims add 10,000 megawatts of coal-fired power generation by 2010.
The loans, which will finance 85 percent of the projects, will mature in 10 years with a three-year grace period and a floating rate based on the Jakarta interbank rate, or Jibor.
“Until now the [electricity] demand in the market is much higher than the current capacity of PLN to supply consumers,” said Gatot M. Suwondo, president director of PT Bank Negara Indonesia.
The first agreement that PLN signed was a syndicated loan of Rp 1.1 trillion with BNI and BRI to finance a coal-fired power plant project in Tanjung Awar-Awar, East Java Province, consisting of two power plants with a 350 MW capacity each.
The second agreement was with BRI and BPDs from districts in Jakarta, Papua, South Kalimantan and South Sumatra provinces for another Rp 1.1 trillion-worth of loans to help finance six power plants in Bangka Belitung Islands, South Kalimantan Province, and Papua Island.
The remaining Rp 2.1 trillion will be used to construct eight power plants with the capacity to generate a total of 310 MW. The plants will be constructed in the Sulawesi, Kalimantan, Papua and Sumatra Islands.
Bloomberg reported on Friday that PLN may cut coal buying costs by 38 percent to Rp 500,000 a ton, from around Rp 700,000 to Rp 800,000 a ton last year, due to softening energy prices.
Last week, Jacobus Purwono, director general of electricity at the Ministry of Energy, said PLN would pay Rp 750,000 for a ton of coal. However, Jacobus said that the earlier estimated coal price was made when the oil assumption was at $80 per barrel, while the ministry is now proposing the oil assumption to be between $40 to $60.
PLN estimates that it would consume 34 million of coal this year, about 13 percent more than last year, Nasri Sebayang, PLN’s head of primary fuels said, as quoted by Bloomberg. PLN hasn’t priced all the coal it will use, he said, without elaborating further.
Foreign Investors Still Interested in Bukopin
Jakarta-
PT Bank Bukopin CEO Glen Glenardi said foreign investors are still attracted to Bank Bukopin to be their strategic investor. The plan is being delayed due to the economic downturn. "They are still biding their time," Glen said in Jakarta yesterday.
Bukopin also said it was continuing with its rights issue plans, scheduled to take place during the first semester of 2009. The company will offer 20 – 30 percent of its share to the current shareholders in order to support Bukopin's business and to add the capital sufficiency ratio which is currently at 11 percent.
According to Glen, Bukopin's rights issue was supposed to happen in 2008, targeting earnings of about Rp800 billion to Rp1 trillion. However, the unsupportive market situation forced them to cancel the plan. This year, Bukopin has targeted funds from third parties fund to increase by 20 – 30 percent from last year's Rp27 trillion.
Besides the rights issue, Bukopin will also launch 30 micro- financial institutions in February 2009. These institutions are intended to counsel small and medium-scale businesses through cooperation with the community or through partnerships. 29th January 2009 By Tempo Interactive
PT Bank Bukopin CEO Glen Glenardi said foreign investors are still attracted to Bank Bukopin to be their strategic investor. The plan is being delayed due to the economic downturn. "They are still biding their time," Glen said in Jakarta yesterday.
Bukopin also said it was continuing with its rights issue plans, scheduled to take place during the first semester of 2009. The company will offer 20 – 30 percent of its share to the current shareholders in order to support Bukopin's business and to add the capital sufficiency ratio which is currently at 11 percent.
According to Glen, Bukopin's rights issue was supposed to happen in 2008, targeting earnings of about Rp800 billion to Rp1 trillion. However, the unsupportive market situation forced them to cancel the plan. This year, Bukopin has targeted funds from third parties fund to increase by 20 – 30 percent from last year's Rp27 trillion.
Besides the rights issue, Bukopin will also launch 30 micro- financial institutions in February 2009. These institutions are intended to counsel small and medium-scale businesses through cooperation with the community or through partnerships. 29th January 2009 By Tempo Interactive
Danareksa plans Indonesia's first mortgage debt
JAKARTA - Indonesia's PT Danareksa Investment Management aims to launch 100 billion rupiah ($8.84 million) worth of mortgage-backed securities in February, the first such debt in the country, its chief said on Friday.
The debt, backed by receivables from loans extended by state-owned home lender PT Bank Tabungan Negara, will be launched on Feb. 3, carrying 13 percent coupon rates with an average maturity of 2.6 years.
Indonesia's corporate debt market currently plays a relatively insignificant role in corporate financing in Southeast Asia's biggest economy compared to bank lending.
The government, however, has stepped up efforts to boost corporate debt market including by revising regulations which had paved the way for the issuance of the expected first domestic mortgage-backed securities.
"The 100 billion rupiah issuance is only the first phase," Danareksa's president director Priyo Santoso told Reuters, saying the firm may launch more of such debt if market conditions are favourable.
PT Standard Chartered Securities Indonesia has been appointed as the underwriter for the debt issuance and PT Bank Rakyat Indonesia Tbk (BBRI.JK) as the custodian while financial firm PT Sarana Multigriya Finansial as the standby buyer, the firms said in a joint statement. 30th Januari 2009 By Reuters.
The debt, backed by receivables from loans extended by state-owned home lender PT Bank Tabungan Negara, will be launched on Feb. 3, carrying 13 percent coupon rates with an average maturity of 2.6 years.
Indonesia's corporate debt market currently plays a relatively insignificant role in corporate financing in Southeast Asia's biggest economy compared to bank lending.
The government, however, has stepped up efforts to boost corporate debt market including by revising regulations which had paved the way for the issuance of the expected first domestic mortgage-backed securities.
"The 100 billion rupiah issuance is only the first phase," Danareksa's president director Priyo Santoso told Reuters, saying the firm may launch more of such debt if market conditions are favourable.
PT Standard Chartered Securities Indonesia has been appointed as the underwriter for the debt issuance and PT Bank Rakyat Indonesia Tbk (BBRI.JK) as the custodian while financial firm PT Sarana Multigriya Finansial as the standby buyer, the firms said in a joint statement. 30th Januari 2009 By Reuters.
BANK RAKYAT INDONESIA POSTS 15% INCREASE IN NET PROFIT
JAKARTA - PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) reported a 15 per cent increase in net profit to Rp5.5 trillion (US$500 million) in 2008 from Rp4.8 trillion in the previous year.
Abdul Salam, the finance director of the publicly traded state bank, said BRI achieved all its targets set for 2008.
Salam said, the bank's outstanding credits grew 40 per cent to Rp164 trillion in 2008 and this year it is set to see the credit to grow further by 20 per cent-25 per cent.
Credits are still dominated by ones for small and medium enterprises, which account for around 80 per cent of its total credits.
The country's largest lender in credit, now has a loan to deposit ratio (LDR) of 86 per cent with capital adequacy ratio (CAR) of 13.5 per cent, the newspaper Investor Daily said.
Salam said the bank plans to issue bonds valued at Rp300 billion in the second half of this year to keep the CAR from being reduced by credit expansion.
Abdul Salam, the finance director of the publicly traded state bank, said BRI achieved all its targets set for 2008.
Salam said, the bank's outstanding credits grew 40 per cent to Rp164 trillion in 2008 and this year it is set to see the credit to grow further by 20 per cent-25 per cent.
Credits are still dominated by ones for small and medium enterprises, which account for around 80 per cent of its total credits.
The country's largest lender in credit, now has a loan to deposit ratio (LDR) of 86 per cent with capital adequacy ratio (CAR) of 13.5 per cent, the newspaper Investor Daily said.
Salam said the bank plans to issue bonds valued at Rp300 billion in the second half of this year to keep the CAR from being reduced by credit expansion.
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