Bahana Beacon

CORPORATE
• Bank Mandiri (BMRI-BUY-IDR4,600-TP:IDR4,700), announced on Sunday that it had cut another 50 basis points from its average lending rate. The cut, which is the fifth by the bank since early this year, brings its average rate down by a total of 2.25 ppt in a move aimed at easing the burden on borrowers and stimulating the economy. BI held its key rate steady at 6.5% in September. However, Muliaman noted that the spread between time-deposit rates and base lending rates was still too wide, at more than 6% because of perceived risk. Bank Danamon (BDMN-BUY-IDR4,800-TP:IDR5,700 president director Sebastian Paredes said his bank would also cut lending rates gradually in the months ahead, although he admitted the rate cuts would probably be slower than cuts to its deposit rate (The Jakarta Post)

• Bank Bukopin (BBKP-HOLD-IDR415-TP:IDR470) to conduct rights issue amounting to IDR119b with nominal value of IDR100 per share. For every 20 shares owned by shareholders will have the right to order 1 new share with exercise price at IDR415. Ex-date will be on 11 December 2009. (Bisnis Indonesia)

• Aneka Tambang (ANTM-REDUCE-IDR2,575-TP:IDR2,000) has confirmed to lead the buying consortium for 14% shares of Newmont Nusa Tenggara as part of its divestment program in 2008-2009. ANTM cooperates with 3 local governments to conduct this project. (Bisnis Indonesia)

• Indika Energy (INDY-BUY-IDR2,350-TP:IDR3,100) plans to issue USD250m worth of senior notes through its wholly-owned subsidiary, Indo Integrated Energy II B.V. The bond issuance will be listed in Singapore Stock Exchange and has been awarded with B+ rating by Fitch Ratings. (Kontan)

• Medco Energi Internasional (MEDC-HOLD-IDR3,050-TP:IDR3,050) plans to issue USD300m worth of bond to settle its debt. The company itself invites several underwriters in issuing this bond. Meanwhile, there is still no further information regarding this. "We will disclose the details with Indonesia Stock Exchange", said The Corporate Secretary, Cisca Alimin. (Bisnis Indonesia)

• Adhi Karya (ADHI-HOLD-IDR440-TP:IDR500) has secured a new project contract worth of IDR4.5t during January-September 2009. The value of the contract itself has only reached half of this year target at IDR8.9t. "We are optimistic to reach the target because currently we are following tender offers which will be announced on 3Q09", said The Corporate Secretary, Kurnadi Gularso. (Investor Daily)

• Berau Coal may report profit more than doubled this year as output gained. Berau's net income may climb to USD180m in 2009 compared with USD78m in 2008. Benchmark coal prices may average USD80 a metric ton next year from an estimated USD70 per ton this year, said Bob Kamandanu, CEO of Berau Coal. (The Jakarta Post)

• The Rajawali Group is planning to expand its palm oil plantations to 250,000 hectares from 40,000 hectares in the next 5 years and will list its plantation firm on the IDX in 2011. (The Jakarta Post)