“Sany is convinced that we’re able to sell our products to Asian countries,” said the president director of Sany, Liang Wengen.

“Our market share in the Asian market is still very small, at less than 5 percent. So [through] the investment in Indonesia, we hope we can increase our market share in Asian countries.”

Wengen said the initial injection would be $15 million, with the total investment at $200 million.

“This is going to the biggest investment that Sany has made.”

Sany’s plan is part of the Chinese government’s pledge to support development in Indonesia and improve the trade balance between the two countries.

Wengen said the factory would play an important role in boosting revenue to 350 billion RMB ($54 billion) in 2015, up from 90 billion RMB target for this year.

“We’re not just going to manufacture here, but we will also transfer our technology to Indonesia,” he said.

The factory will be located on 10 hectare in Cikarang industrial zone. It will have an annual capacity to manufacture 1,000 units of heavy equipment and is expected to absorb 1,500 workers. Construction is expected to star in July, with operations expected to open in 2012

“We have a passion for Indonesia. Its huge population and low labor cost are also what draw us here. We’re optimistic that our operation here will break even in no time,” Wengen said.

Sany group started operations in 1989 and currently has factories in the United States, Germany, India and Brazil. The corporation employs more than 53,000 people in more than 120 countries. It’s sales last year reached 50 billion RMB.

Agus Cahyana, the secretary general of the Industrial Ministry, said that the government welcomed the new investment would facilitate it by helping the company find the location and providing market data.

(Source: Jakarta Globe)

Separately, Indonesia's Investment Coordinating Board reported Monday that local companies invested 19.7 trillion rupiah in facilities and expansion, up 40% from a year earlier.

Foreign businesses have been attracted by the robust growth in recent years in Southeast Asia's largest economy, as well as by two international credit-rating firms' upgrades in recent months, which raised the country's debt to investment grade for the first time in 14 years.

Though concerns are growing among companies that Indonesia is becoming more protectionist and is failing to sufficiently improve its poor infrastructure, the growth is strong enough that some foreign investors are willing to overlook such concerns.

"These [numbers] underpin Indonesia's positive macro story and how it's remaining an attractive place for investment," said Indonesian Trade Minister Gita Wirjawan, who heads the investment board. "As such, we must continue taking a proactive view on the regulatory framework," to ensure further investment in the future, he said.

After Indonesia's economy expanded 6.5% last year—its fastest growth since 1996—the World Bank projects it will grow 6.1% this year. However, the bank warned earlier this month that a string of restrictive changes to trade and foreign-investment policies may have longer-term implications for growth and investment.

The government recently ruled that foreign investors must divest themselves of 51% of ownership in local mines to local entities by the 10th year of operation. The government also has said it would ban exports of some raw minerals, including copper, iron, nickel and bauxite, early next month, although it may introduce a tax that would allow exports until 2014.

Separately, ratings firm Standard & Poor's said Monday it had decided against upgrading Indonesia's sovereign credit rating to investment grade. That leaves S&P as the last major firm to rate the country as junk.

Speculation has been high that S&P was close to raising Indonesia's rating, but the ratings service only maintained its BB+ credit rating with a positive outlook. S&P said Indonesia's fundamentals remain strong and that the government is working to reduce its outsize energy-subsidy bill, but "some policy slippages" raise concerns. These slippages include the "abandonment of a planned electricity tariff rise, the inability to implement fuel subsidy cuts despite rising oil prices, and a host of proposed or actual policy measures in industry and trade," the ratings firm said.

Indonesia's Parliament last month put off plans to raise subsidized fuel prices by 33%, and so cut a fuel-subsidy bill that is ballooning to more than $15 billion.

Monday's FDI numbers, however, show that some foreign companies have yet to be deterred by those issues or by economic policies some investors describe as protectionist.

James Riady, chief executive of Lippo Group, 0226.HK +0.72% which has investments in retail, property and health care, said Monday that the company's industrial-estate business is booming amid a surge of foreign businesses looking to set up shop in Indonesia and target the increasingly affluent and free-spending middle class.

"They are all gearing up to produce more" in Indonesia for Indonesians, he said.

The investment board said the mining sector was the quarter's biggest FDI recipient, attracting $1.1 billion, followed by the transportation and telecommunications sector at $800 million and plantations at $500 million. Singapore was the leading source of FDI during the quarter, at $1.2 billion, followed by Japan at $600 million and South Korea at $500 million.

"Many of these investments probably came from projects that were [planned] before, thus are unlikely to be stopped suddenly" by confusing government policy, said Wilianto Ie, head of Indonesian equity research at Nomura in Jakarta. "If one looks at just the fundamentals and takes out the perception and perceived historical risk, then Indonesia will still stand out."
Source: Wall Street Journal 23 April 2012

Evita Herawati Legowo, Oil and Gas director-general of the Energy and Mineral Resource Ministry, said the incentive offered is, among others, in the form of proportional sharing system between the government and the oil and gas contractors.

The figures proposed by the government are different from the ones offered for field and land oil and gas projects. Evita said the proportion for oil and gas projects on land in 15:85 percent while deep sea projects may be offered up to 65:36 percent proportion for the government and the contractors, respectively. “Depending of geological condition,” said Evita on Wednesday.

Source: Tempo

Akuisisi dilakukan dengan membeli 100% saham Fullerton Financial Holdings Pte Ltd (FFH) pada Asia Financial (Indonesia) Pte Ltd, perusahaan pemilik 67,37% saham Danamon,senilai Rp45,2 triliun. Chief Executive Officer (CEO) DBS Group Holdings and DBS Bank, Piyush Gupta, mengatakan, akuisisi saham Bank Danamon didasarkan pada harga Rp7.000 per lembar saham. Total nilai transaksi akan dibayarkan dalam bentuk 439 juta saham baru DBS dengan harga penerbitan saham 14,07 dolar Singapura per saham.

“Akuisisi ini akan meningkatkan kontribusi pendapatan dari perkembangan pasar yang tinggi dan akan menjadikan Indonesia sebagai salah satu dari tiga kontributor pendapatan terbesar DBS bersama-sama Singapura dan Hong Kong,” ungkap Gupta dalam konferensi pers perjanjian jual beli saham bersyarat dengan Fullerton FinancialHoldingsdiJakartakemarin. Danamon merupakan bank terbesar keenam di Indonesia dengan total aset per Desember 2011 sebesar Rp127 triliun.

Asia Financial menguasai 67,37% saham Danamon sejak 2003, ketika mereka mengambil alih bank tersebut dari Badan Penyehatan Perbankan Nasional (BPPN) seharga USD321 juta (Rp3,08 triliun). Piyush Gupta menuturkan, setelah proses akuisisi tuntas, DBS akan melakukan penawaran tender untukmembelisaham Danamon milik investor di Bursa Efek Indonesia dengan harga penawaran Rp7.000 per saham.

Dengan asumsi penawaran tender akan diterima seluruhnya, nilai akuisisi Danamon mencapai Rp66,4 triliun. “Sebesar Rp45,2 triliun di antaranya akan dibayarkan kepada Fullerton Financial Holdings Pte Ltd dalam bentuk saham baru yang dikeluarkan DBS dan sisanya dengan uang tunai kepada pemegang saham publik Danamon. Pembayaran tunai ini sekitar Rp21,2 triliun,”ungkapnya. Harga penawaran Rp7.000 per lembar itu merupakan harga dengan premi 56,3% di atas volume weighted average price (VWAP) per saham sebulan terakhir yaitu Rp4.480.

Gupta menambahkan,akuisisi sejalan dengan rencana strategis DBS untuk menjadi bank terkemuka di Asia dengan sumber pendapatan yang beragam dari campuran berbagai segmen bisnis utamanya di China,Asia Selatan,dan Asia Tenggara.Dia optimistis sektor perbankan di Indonesia sangat menarik karena alasan demografis, faktor ekonomi makro yang kuat, dan pertumbuhan ekonomi yang pesat. “Sektor perbankan di Indonesia belum sepenuhnya dikembangkan dan terus didukung oleh jumlah warga kelas menengah yang terus bertambah.”

”Peningkatan konsumsi domestik yang cepat, dan peningkatan alur perdagangan,” tambah Gupta. Chairman DBS Peter Seah mengatakan, akuisisi Danamon merupakan tonggak penting yang menunjukkan kepercayaan DBS dan komitmen jangka panjang terhadap pasar di Indonesia. “Daya tahan ekonomi Indonesia yang terefleksi dari peningkatan rating investasi baru-baru ini telah menciptakan lingkungan operasi positif bagi kami,”ungkapnya. Adapun Presiden Direktur Bank Danamon Henry Ho dalam siaran persnya menyatakan telah mendapat informasi dari FFH mengenai kesepakatan penjualan saham bersyarat tersebut.

Menurutnya,DBS memiliki kekuatan dalam corporate banking, capital markets, trade finance, dan investment management. “Apabila transaksi terlaksana, Danamon akan bekerja sama dengan DBS untuk menjadi bagian dari suatu perbankan Asia yang dinamis,”ucapnya. Kepala Biro Humas BI Difi A Johansyah mengaku belum mendapat pemberitahuan dari Danamon soal rencana akuisisi oleh DBS. BI akan melihat perubahan struktur pemegang saham Danamon, apakah tergolong perubahan pemegang saham biasa atau perubahan pengendali.

”Kalau perubahan pemegang saham biasa, bisa langsung dilaporkan untuk dilakukan fit and proper test.Tapi kalau perubahan saham mengubah struktur pengendali, prosesnya adalah bank tersebut mengumumkan ke publik dan diberi waktu sebulan sebelum dilakukan RUPS,”ungkapnya. Sementara itu, Fitch Ratings menempatkan Bank Danamon BDMN dalam Rating Watch Positive pascarencana akuisisi oleh DBS Group.

Analis Fitch untuk Danamon Julita Wikana dan analis Fitch untuk DBS Alfred Chan mengungkapkan, Rating Watch Positive mencerminkan ekspektasi Fitch bahwa profil risiko Bank Danamon akan membaik dengan masuknya dukungan pemegang saham baru sekelas DBS. Fitch memperkirakan peringkat obligasi jangka panjang Danamon dalam rupiah akan naik menjadi BBB dari level BB+. Merespons akuisisi itu,Bursa Efek Indonesia (BEI) kemarin menghentikan sementara perdagangan efek Bank Danamon.

Kepala Divisi Perdagangan Saham BEI Andre PJ Toelle mengatakan, penghentian ini untuk mencegah fluktuasi yang tidak wajar atas perdagangan efek BDMN. ”Penghentian sementara perdagangan efek atau suspend PT Bank Danamon Tbk (BDMN) di seluruh pasar mulai perdagangan sesi pertama Senin,2 April 2012,”ungkapnya.

Speaking on the sidelines of the National People’s Congress, Guo said talks to iron out the deal, announced in June last year, to set up four cement plants in the Southeast Asian nation are “proceeding smoothly.”

Meanwhile, the company is examining other overseas investment projects in Brazil and Mongolia, among other opportunities, he said.

(Source : MarketWatch)

PT Moya Indonesia, a subsidiary of Bahrain holding company Moya, has signed a 25-year build, operate and transfer (BOT) contract with the Indonesian Municipal Authority for the country’s biggest fresh water treatment complex.

Moya, co-founded by Gulf One Investment Bank and Bushnak Group led by Dr Adil Bushnak, is a GCC-based joint stock company focusing on providing water supply and related infrastructure in the GCC and Southeast Asia regions.

Its other major shareholders include Energy and Environmental Solutions Company, Tamimi Company and Hoshanco from Saudi Arabia.

Moya said the contract with the Indonesian municipal authority PDAM Tangerang includes design, build, upgrade, uprate, operate and transfer of a fresh water treatment complex and associated network development, thus providing clean water supply for Tangerang City, Indonesia.

The Tangerang project will be divided into three zones, each with a concessionary tenure of 25 years and is estimated to be built at a cost of $110 to $120 million.

When fully completed, the total production capacity will be 168,480 m3/day, it added.

Dr Nahed Taher, co-founder and CEO of Gulf One and Moya chairperson said the project was a great milestone for Moya as the contract will be the largest BOT project that the company has signed to date.

‘It is also a strategic achievement for Gulf One Bank’s vision in creating wealth in one of the most important infrastructure sectors in the future of world economy,Water, also referred to as ‘Blue Gold’,’ he stated.

Since inception, Moya has proven to be a prosperous and successful investment for shareholders, said Taher.

‘The management with proper direction from the board have progressively built an organisation that has the capacity to deliver long-term sustainable growth,’ he added.

Commenting on the project, Simon A. Melhem, CEO of Moya Asia Limited said, “This is our most significant BOT project to date. We anticipate that this project will contribute a substantial, stable revenue stream for Moya and its other shareholders in years to come.”

Gulf One co-founder and CIO Ziyad F Omar said, ‘We see Indonesia as a promising economy and are proud to have PTMI as one of our indirect investments there. Foreign investors are rightfully looking at Indonesia carefully, eager to capitalise on the strong growth in the country.’

According to Global Water Intelligence, while local government-owned water utilities companies (PDAM) still dominate the clean water supply market in most parts of Indonesia, an emerging trend of privatization has resulted in beneficial returns for private BOT companies who are still small in numbers.

PDAMs serve only about 30 per cent of the Indonesian population while only 23 per cent of the Indonesian populations have access to piped water supply, said Omar, citing the global reports.

Gulf One, he said, has through its subsidiaries participated in this growth and continues to increase its presence in Indonesia’s surging economy.

‘Through this investment, Gulf One has developed its relationship with stakeholders in Indonesia and intends to further strengthen these relations with future projects,’ Omar added.

(TradeArabia News Service)

Beverages supplier Coca-Cola Amatil says further boosting of its investments in Indonesia and Papua New Guinea will be a high priority in 2012.

CCA booked an annual net profit of $591.8 million for the 2011 calendar year, up 19 per cent on the prior year.

The result included a $59.8 million gain in significant items.

Net profit before significant items rose five per cent to $532.0 million.

Trading revenue lifted 6.9 per cent to $4.8 billion.

The company declared a final dividend of 30.5 cents per share, fully franked, up 8.9 per cent.

The significant gain of $59.8 million comprised $170.3 million in after-tax profit from the agreement to sell CCA’s 50 per cent share of the Pacific Beverages brewing joint-venture to SABMiller in December 2011, less $110.5 million in restructuring and associated costs for the SPC Ardmona food business.

Shares in the company were up four cents to $12.08 shortly before the close of trade despite trading lower for most of the day.

CCA group managing director Terry Davis said the result was a strong one in a tough trading environment.

“I believe that to deliver five per cent growth in net profit to $532.0 million, as well as $170.3 million in after-tax profit from the Pacific Beverages transaction, in what was undoubtedly the most challenging year the business has faced in over a decade, is a credit to the strength of our business model,” Mr Davis said in a statement.

“By investing through the cycle, we have continued to outperform our peer group in the food and beverages sector, and strengthened our market leadership position by delivering service level improvements to our customers.”

CCA said its businesses in Indonesia and Papua New Guinea had generated strong growth in earnings, boosted by increased manufacturing capability and the distribution of more cold drink coolers.

“The up-weighting of our investment in Indonesia and PNG remains a high priority as the growth outlook for both businesses continues to be favourable,” Mr Davis said.

“The Indonesian economy remains very buoyant with GDP (gross domestic product) growth expected to be over six per cent in 2012, supported by positive government financial reforms that are encouraging much-needed investment in infrastructure.”

Mr Davis said CCA’s Australian business was expected to deliver volume and revenue growth in 2012.

“While the weak consumer spending environment in Australia and New Zealand remains a concern, and the persistent poor weather in NSW and Queensland has dampened summer trading, we have a solid promotional program in the lead-up to the Olympics, with Coca-Cola a key sponsor, and we are cycling the impacts of natural disasters and poor weather in 2011,” he said.

CCA also said the first stage of packaged fruit production at its SPC Ardmona business, which is being restructured, had been transferred from Mooroopna to Shepparton.

Overall, 37 of 150 affected employees had left the business, with the balance of redundancies to be taken up in May 2012.

Attachments required to be submitted with applications :

1. Letter of recommendation from the related country or letter which is issued by the Embassy/ Representative Office of the related country in Indonesia if the applicant is The Government of another country;
2. Copy of valid passport if the applicant is a foreign individual;
3. Copy of Articles of Association of the company in English or its translations in Bahasa from sworn translator if the applicant is a foreign company;
4. Copy of valid Identity Card (KTP) if the applicant is an Indonesian individual;
5. Copy of Articles of Establishment of the company and any amendment (s) and approval from the Minister of Law and Human Rights if the applicant is incorporated under the law of Republic of Indonesia;
6. Copy of Tax Registration Code Number (NPWP) for the applicant, either for Indonesian individual or company which is incorporated under the law of the Republic of Indonesia;
7. This application should be properly and duly signed with sufficient stamp duty by all applicants (if the company is not yet incorporated) or by the company’s Board of Directors (if the company is already incorporated) attached with Power of Attorney with sufficient stamp duty from whom signs and/or submits the application if the applicant is represented by another party (provisions concerning the Power of Attorney is strictly regulated in this regulation (article 63).

Source: BKPM

Eni, through its subsidiary Eni Indonesia, has been awarded today two new Production Sharing Contracts (PSCs) in Indonesia.

In the West Papua Province (East Indonesia), Eni has been awarded 100% interest in the Arguni I PSC (5,386 sq. km), located onshore and offshore in the Bintuni Basin. The block is 10 km east of the Tangguh LNG processing facility. The work program foresees the acquisition of 2D and 3D seismic and the drilling of two wells during the first 3 years of exploration.

In the offshore East Kalimantan Province, Kutei Basin, Eni, as part of a consortium including Niko Resources (North Ganal) Ltd., North Ganal Energy Ltd (a wholly-owned subsidiary of Black Platinum Energy Ltd), Statoil Indonesia North Ganal AS and GDF SUEZ, has been awarded the North Ganal PSC (2,432 sq. km). Eni will be the Operator.

The North Ganal Block is adjacent to the successful Jangkrik and Jangkrik North East discoveries. The North Ganal deal involves the drilling of one well and the acquisition of 200 km of 2D seismic during the first 3 years of exploration. The Bontang LNG processing facility is located about 80 km west of the North Ganal acreage.

Eni as operator of the Muara Bakau PSC has already presented the Plan of Development for Jangkrik field to the Indonesian Authorities, which is expected to go on stream in 2015 thanks to a fast track development concept. GDF SUEZ is partner in the JV.

Eni has been operating in Indonesia since 2001. The company holds working interests in fourteen permits and operates eight of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei Basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan. Eni has an equity production of approximately 20,000 boed in this area and has been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC), through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The coal-bed methane coming from Sanga Sanga would be liquefied at the Bontang plant, representing the first LNG facility to be supplied with CBM.