AmCapital News Highlights

Astra Agro Lestari (AALI, Rp21,700)
4M10 CPO production declined by 3%
Astra Agro Lestari, the plantation company subsidiary of Astra International, said its crude palm oil production for January-April fell about 3% YoY. The company’s 4M10 CPO production was 295.9k tons. – Bloomberg

Bank Negara Indonesia (BBNI, Rp2,450)
To pay 35% of 2009 net income as dividend; change in the board of directors Bank Negara Indonesia will pay a dividend amounting to 35% of last year’s net income. Meanwhile, the bank will install Adi Setianto, Sutanto, Honggo Widjojo Kangmasto and Darmadi Sutanto as new directors pending approval from Bank Indonesia. The bank also plans to sell new shares amounting 13% of its stake in a rights offer in 4Q10 if it receives approval from the government and parliament. It may issue subordinated debt of about US$200mn- 300mn if government didn’t approve right offer plan. – Bloomberg

Comment: We do not expect there will be major change in the strategy direction of the bank as key positions in the management, including CEO-Gatot Suwandono, Vice President -Felia Salim, and CFO-Yap Tjay Soen are retained.

Bank Bukopin (BBKP, Rp590)
Jamsostek reiterates buying 30% Bukopin’s stake
State social security agency Jamsostek is reiterating buying up to 30% of Bank Bukopin’s stake, higher than initial plan of 20%. It has prepared funds of around Rp500bn for the acquisition, according to a local newspaper. To realize the plan, Jamsostek will be act as the standby buyer of Bukopin upcoming right issue.- Investor Daily.

Indika Energy (INDY, Rp2,750)
Planning US$140mn loans to subsidiary Petrosea
Conglomerate Indika Energy will seek shareholders’ approvals for the planned intercompany loan transaction, in which it will provide 5-years 9.85% loans amounting US$140mn to Petrosea via its subsidiary, Westlake, according to the prospectus published in local newspaper. Petrosea may use the proceeds for expanding its heavy equipment fleet and development of its Offshore Supply Base, the report said. – Bisnis Indonesia

Barito Pacific (BRPT, Rp1,210)
Increased share holdings in Gozco Plantation
Conglomerate Barito Pacific said it had increased its share holdings in listed oil palm plantation Gozco Plantation to 11.21% after serial of share purchases in Indonesian Stock Exchange from March 8, 2010 to March 15, 2010. The conglomerate now owned 560.5mn shares. – Bisnis Indonesia

Energi Mega Persada (ENRG, Rp147)
Financing for Masela PSC to be decided on June
The financial closing for the gas-rich Masela block is expected to be concluded by June 2010, President Director of Energi Mega Persada Imam P. Agustino said. Following this, there may be cash call for the companies in the project. The Masela block is estimated to have 10 Trillion Cubic Feet or TCF of gas, local newspaper reported. Investment needed to develop the block, including Floating LNG with production capacity of 4.5mn tons p.a. may reach US$14.5b, the report said. Energi Mega has 10% stake in the block, with Japan-based Inpex acting as the block’s operator with 90% stake. – Bisnis Indonesia

Alam Sutera Realty (ASRI, Rp184)
Mulling over investment up to Rp1tn
Tangerang -based property developer Alam Sutera Realty is considering plans to spend Rp1.0tn for investments over the next three years to build shopping malls, offices, and apartments, citing the company’s Corporate Secretary Hendra Kurniawan. Alam Sutera may spend between Rp600bn and Rp700bn for its capital expenditure this year. – Investor Daily

Utility Sector
PLN seeking bids for 5-Year contract of coal supply State-owned utility, PLN, is seeking bids for a 5-years contract to supply the low rank coal or LRC to feed 14 power plants in Java, Sumatra and Sulawesi islands. Bidders have until 3 p.m. Jakarta time June 1 to submit bids, PLN said in a tender notice published in local newspaper. PLN invited bids from companies that own coal mines with annual sales of at least 1 million tons and reserves of at least 20mn tons. PLN is seeking thermal coal with a Calorific Value or CV of 3,900 kcal per kg to 4,250 kcal per kg. – Bloomberg