Jakarta. Dian Swastatika Sentosa, Sinar Mas Group’s energy and infrastructure holding company, is working on two new coal-fired power plant projects worth $620 million, a director at the company said.

Hermawan Tarjono, a director at Dian Swastatika, said on Wednesday that the two projects consist of a 2×150 megawatt power plant project called Sumsel-5 Musi Banyuasin in South Sumatera, and a 2×50 MW of Kendari-3 in Southeast Sulawesi.

He said construction of the Sumsel-5 plant, estimated to cost about $420 million, has reached 90 percent completion and by the end of the year is set to open for operation.

“The coal need for Sumsel-5 is expected to reach 2 million tons per year. We can take coal supply from the company’s [Dian Swastatika] subsidiary Andalan Satria Lestari,” said Hermawan in Jakarta on Wednesday.

Meanwhile, the Kendari-3 is scheduled to begin construction in early 2016, and will cost about $200 million. Dian Swastatika has set a target to start operating the plant in 2018.

Hermawan said the plant would require 500,000 tons of coal per year. Dian Swastatika is seeking to secure coal for its Kendari plant from its listed coal mining arm Golden Energy Mines.

The director said the company would seek about 75 percent of the financing for the $620 million project from bank loans and the remaining from equity injection.

In March the company signed a loan worth $510 million with the China Development Bank (CDB) to help finance the power plant.

“The process for disbursion of loans from CDB really depends on the progress of the project,” Hermawan said.

“For example, Kendari-3 now is still dealing out with land acquisition. If it can be settled soon, then the loans will also be disbursed faster.”

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Jakarta. Jakarta-based asset management firm Batavia Prosperindo Aset Manajemen has set a target to manage as much as Rp 23 trillion ($1.7 billion) worth of funds by the end of 2015, with hopes that investment appetite will pick up in the second half of the year.

The company’s new target would be a 45 percent increase from Rp 15.9 trillion in total assets under management (AUM) in December last year.

“If everything goes well with the launch of our new products, hopefully we can reach Rp 23 trillion at the end of the year,” Lilis Setiadi, Batavia Prosperindo Aset Manajemen president director, told reporters in Jakarta on Tuesday.

Batavia Prosperindo Aset Manajemen has managed Rp 19.89 trillion of funds as of May, or 86 percent of its target for the year, mostly consisting of fixed income mutual funds.

“We currently have 71 [mutual fund] products, made up of 12 new products that we launched between January and May. We’re hoping to launch 20 more in the remainder of the year,” Lilis said, adding that the new products will consist of 16 protected mutual funds, two money market products and two fixed income products.

The company recently expanded its partnership with Commonwealth Bank Indonesia, the local arm of the Commonwealth Bank of Australia, on Tuesday, adding one stock-based mutual fund — the Batavia Dana Saham (BDS) — to its distribution network.

The asset management firm, a subsidiary of publicly-listed Batavia Prosperindo Internasional, will release new products against the backdrop of slowing national economic growth, a volatile stock market and the looming Federal Reserve’s policy rate hike.

Indonesia’s economy has moved at an annualized rate of 4.7 percent, its weakest pace in five years,  while the Jakarta Composite Index (JCI) has declined by nearly 7 percent to 4,888.5 since the beginning of the year.

Still, Lilis remained upbeat about the company’s target, noting that “Indonesia’s fundamental economic indicators are still positive for the medium-and longer term, and that will be reflected by the index.”

Agung Budiono, chief investment officer at Batavia Prosperindo Aset Manajemen, said that investors’ appetite should improve in the second half of the year, awaiting more certainties globally and locally.

He cited the United States’ Federal Reserve’s decision of the key interest rate as one of the biggest determinants for investors. Locally, investors are also still waiting for the government’s reforms and infrastructure development promises to take shape, Agung added.

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Jakarta. Motorcycle sales in Indonesia plummeted by 35 percent in the first five months of 2015 from the corresponding period last year, signalling a massive slowdown in consumer purchasing power.

Sales from January to May totaled 2.66 million units, according to the Indonesia Motorcycle Manufacturers Association (AISI), down from 3.46 million in the same period in 2014.

In May alone, sales fell 10.4 percent year-on-year to 482,691 units.

Sigit Kumala, the head of commercial activities at AISI, said manufacturers had cut the number of units distributed to dealers nationwide to avoid an oversupply.

“If the distribution is pushed, the price will become unhealthy [...] distributors may be forced to give massive discounts,” Sigit told Investor Daily.

AISI chairman Gunadi Sinduwinata blamed lower consumer purchasing power for the plunge in motorbike sales.

“The spiraling inflation and higher fuel costs have eroded purchasing power,” he said, adding that consumers tended to postpone the purchase of durable goods during such situations.

In May, inflation accelerated to 7.15 percent year-on-year from an annualized 6.79 percent in May, on the back of higher food and gasoline prices.

May inflation hit a five-month peak and was higher than expected. A Reuters poll had estimated May inflation at 7.0 percent.

The decrease in motorcycle sales is another sign from major economic indicators signaling a slowdown in Indonesia’s economy.

Data from the Indonesian Cement Association (ASI) showed cement sales — another key economic — declining by 2.8 percent to 23.13 million metric tons in the January-May period.

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Jakarta. The Trade Ministry has said its rice supply is adequate to meet demand until July, with an additional 7.1 million tons of rice expected from harvest in the next two months.

“It means that, up to this time, it is not yet necessary to import rice,” said  Srie Agustina, director general of domestic trade at Trade Ministry, on Monday.

Srie said domestic demand within the next two months is expected to be only 5 million metric tons, so there will be 2.1 million metric tons rice surplus.

Trade Minister Rachmat Gobel earlier said that the government will ensure basic supply ahead of fasting month Ramadan, sparking speculation that the country may need to import rice to fulfil rising demands.

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The golfers pose during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Musician wears traditional Highland costumes playing music on the stage during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Girls carrying banner during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Musician wears traditional Highland costumes playing music during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Musician wears traditional Highland costumes playing music during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Golfers drive golf cars during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

A golfers tees off during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

Area Manager Devere Group, Nick Marshall , fourth left, and Alistair Speirs of the award committee, third left, present the gold medals and prizes to the winner team during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

President Director of JDA Indonesia Applus Velosi Chris Bruderlin, third right, presents the silver medals and prizes to the second winner team during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

President Director Jotun Indonesia Eric Mallace, third left, presents the bronze medals and prizes to the third winner Mulligans team during the 12th Jakarta Highland Gathering Golf Charity at Imperial Klub Golf Karawaci, Thursday, May 21, 2015. (Investor Daily Photo/Emral)

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Jakarta. Indoritel Makmur International, which has interests in  retail chain Indomaret, fast food restaurant KFC, and bread maker Sari Roti, plans to raise Rp 1.3 trillion ($99 million) from issuing new shares via private placement in order to expand its business into fiber optic network provider.

Indoritel will issue 1.4 billion new shares, or equal to 10 percent of its paid up capital, at Rp 925 per share,  the company said in a statement on Tuesday. “The fund from this right issue  will be used for investment in fiber optic service,” said Indoritel in the statement. The company has established a subsidiary Indoritel Persada Nusantara to handle the fiber optic business.

Indoritel operates online commerce www.ogahrugi.com  and software  company under trading name NextSoft. Indoritel has 40 percent in Indomaret operator Indomarco Prismatama, 31.5 percent in Sari Roti bread maker Nippon Indosari Corporindo  and 35.9 percent in KFC fast food chain operator Fast Food Indonesia.

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Jakarta. Isuzu Astra Motor Indonesia, a joint venture automobile and commercial vehicle manufacturer, opened its newest assembly plant in Karawang, West Java, on Tuesday, in a move to answer growing market demand.

The Rp 1.7 trillion ($130 million) factory is expected to produce 52,000 small and medium-sized trucks, including the Isuzu Elf and Isuzu Giga, per year.

Production capacity could expand up to 80,000 units annually, Isuzu Astra Motor Indonesia president director Yohannes Nangoi said. Investor Daily

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Jakarta. Toll road operator Citra Marga Nusaphala Persada has stepped up efforts to acquire transportation company Cipaganti for $153 million.

Yusuf Hamka, the corporate secretary of CMNP, said both companies had met to discuss the acquisition planned for this year.

“The shareholders of Cipaganti showed interest in our acquisition plan. But we still need to have further meetings before signing the memorandum of understanding,” he said.

Yusuf said acquisition was to support CMNP’s long-term business. The company plans to integrate companies under Cipaganti with CMNP’s units to increase toll road traffic as well as other future business plans.

Cipaganti operates businesses in the transportation and financial industries, as well as a number of hotels across the country.

The company’s affiliated investment cooperative, Cipaganti Karya Guna Persada, previously faced scandal after managers from the company were arrested on fraud and embezzlement charges. ID

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Jakarta. Pharmaceutical company Merck plans to conduct a stock split this year to boost liquidity and trade of its shares in the markets, a company official announced last week.

“The company is currently in talks with the Indonesia Stock Exchange [IDX] and the Financial Services Authority [OJK] to perform a stock split,” said Merck Indonesia finance director Bambang Nurcahyo.

The ideal ratio for the split, he added, would be 1:20, meaning the value of each of its share is split by 20.

Merck Indonesia shares closed at Rp 145,000 Friday.

The company plans to hold an extraordinary general meeting of shareholders in the middle of this year to seek approval for the stock split.

German consumer health care company Merck controls 74 percent of Jakarta-based Merck Indonesia, while 13 percent is owned by Emedia Export Company, also a German firm.

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Jakarta. Indosat, a leading Indonesian telecommunication company, plans to raise as much as $154 million from a bond offering planned for either May or June in order to repay its debts.

Indosat will use the bonds’ proceeds to pay back some of the $650 million in guaranteed notes due 2020.

“The issuance value will depend on market conditions,” said Indosat finance director Curt Stefan Carlsson in Jakarta last week.

He noted that the rupiah, having weakened 5.2 percent against US dollar so far this year, would pose a challenge to the bond issue.

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