Morning Brief

27 Jan 2012,

Our best trading ideas for today 24 Jan 2012 ADRO Add Potensi rounding pattern, support kunci di 1.730 24 Jan 2012 TINS Add Breakout trd range 1.650-1.750, target teoritis 1.850 24 Jan 2012 BBNI Add Potensi trading range 3.550-4.050 24 Jan 2012 INDF Add ST trading range di 4.550-4.850 24 Jan 2012 AKRA Red Throwback market, potensi uji support di  3.250	Latest Company Report 30 Nov 2011 ASRI The Right Time for New Projects BUY TP Rp550 24 Nov 2011 UNTR October Operational Outlook BUY TP Rp30,000 18 Nov 2011 BUMI Takeaway from Bumi Plc Note NR Under Review 17 Nov 2011 UNVR Adapting to Win BUY TP Rp17,400 15 Nov 2011 ITMG On Track Volume With Superior ASP HOLD TP Rp48,400 [ More ]
Latest Sector Report  21 Oct 2011 Cement Still on Track OW 16 Sep 2011 Cement Cyclical Downturn Only OW 14 Jul 2011 Cement Buoyant on Volume, Cautious on Price OW 21 Jun 2011 Cement Growth Momentum OW 15 Jun 2011 Coal Mining Contract Renegotiation Brews OW [ More ]	Latest Technical Report  10 Jun 2011 TINS Potensi Rebound Menanti DN 19 Apr 2011 BMRI Tekanan di 2Q11, Siap Panen di 3Q11 RED 15 Mar 2011 Nymex Oil Closing the gap UW [ More ]

Indonesian Government has tentatively set a Rp1.0tr indicative target for ‘Sukuk’ – a type of bond – the issuance of which is based on projects. Director General of Debt Management Rahmat Waluyanto has revealed that the underlying asset that targeted in this sukuk are several infrastructure projects from the Ministry of Public Works and the Ministry of Transportation, with a total of underlying assets recorded at around Rp60.6tr. There are four series for this sukuk: PBS-0001 (tenor of 6 years), PBS-0002 (tenor of 10 years), PBS-0003 (tenor of 15 years), and IFR-0010 (tenor of 24 years). Source: Bisnis Indonesia

Looming global tensions centered around the Hormuz Strait have driven up the price of oil to more than US$90.0 per barrel, far above the Indonesian Government’s previous assumptions. In response, the Ministry of Finance announced that Government is preparing an amendment to its 2012 state budget (APBN). He added that should the oil price movement reach the point where APBN is again compromised, the simulation will be implemented accordingly. Conversely, Indonesian Coordinating Minister of Economic Affairs Hatta Rajasa suggested that geopolitical issues would not in fact exert a major effect on the oil supply and demand situation over the long term, and as a result he expects the price of oil to stabilize shortly. Source: Kompas

Palm oil farmers have suggested Fresh Fruit Bunches (FFB) may be classified as a “taxable product”, for farmers with income of more than Rp600.0m per year; this was stated in the context of the possibility of using restitution funds from income taxes to sustain production facilities in mind. On the other hand, farmers still fuss about the export duty imposed on CPO; implementation of CPO export duties would not significantly affect the price of CPO “end product” exports, argues the Association of Indonesian Palm Oil Producers (Gapki). According to the Association of Indonesian Palm Oil Farmers (Apkasindo), even with the tariff mark-down (25.0% to 10.0%), the export duty as currently imposed is still considered to be onerous and unjust for farmers. Source: Investor Daily.

The Indonesia Cement Association (ASI) is projecting that national cement production this year could grow by 15.0% YoY, from 52.0m tons in 2011, to peak at 60.0m tons. Meanwhile, domestic demand is estimated to rise by 8.3% YoY to a figure of 52.0m tons this year, from 48.0m tons in 2011. Source: Bisnis Indonesia

Mulling over Bukit Asam (PTBA) major 45.6% share price increase (as of Oct11), Management is now considering a plan to split existing outstanding company shares. This news was released by Budi Laksono, PTBA’s Corporate Secretary, during the management stock split plan submission to IDX on 26 Jan12. Should the stock split occur, the number of PTBA outstanding shares will double, rising up to 4.6bn units, while the price per share is halved; implementation the plan is thus aimed to increase liquidity of PTBA shares in the market. Source: The Jakarta Post

On 18 Jan12, 2.5m of Indofood CBP Sukses Makmur (ICBP) shares were put up for sale by Indofood Sukses Makmur (INDF); Rp12.8bn was realized through a sale price of Rp5,100.0 per share (higher than Rp5,050.0 closing price). Following the transaction, INDF share ownership in ICBP fell by 0.05%, from its original level of 80.58%. Source: Bisnis Indonesia

Bank Pembangunan Daerah Jawa Barat dan Banten (BJBR) has prepared Rp50.0bn (equal to US$5.6m) to acquire 10 rural banks (BPR) in West Java , in an attempt to boost its micro-lending business. The company has reportedly secured approval from regulator Bank Indonesia (BI) to conclude the purchases of majority stakes in three rural banks by Mar12. Source: The Jakarta Post