Construction Sector - Entering the next growth cycle

With Jokowi now officially elected as the next president of Indonesia, we are more bullish on the prospects for Indonesia’s infrastructure sector. Despite some stern challenges on the macroeconomic front, we are optimistic that the new government will have the resolve to raise subsidized fuel prices in 2015, saving the government money which can be spent in more productive ways. Hence, by pricing in expectations of greater infrastructure spending, we believe that 2015 will be a rosy year for Indonesian...

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Preview IHSG 28 Agustus 2014

Rilis indikator ekonomi AS yang positif memengaruhi pergerakan sebagian besar bursa Asia, termasuk IHSG yang berhasil menguat 0,36 persen ke level 5,165.25. Seperti diketahui bahwa, optimisme rumah tangga AS terhadap kondisi dan prospek ekonomi AS makin menguat, seperti terlihat pada naiknya indeks kepercayaan konsumen (IKK). Dibulan Agustus, IKK naik ke...

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Today's Headlines - 25 Agustus 2014

SSIA Looks for USD126 Million Debt (BI)Surya Semesta Internusa (SSIA) is considering loans of about USD126 million or about Rp1.46 trillion from a number of local and foreign banks to help fund the rebuilding of the SSI office tower in Jakarta. The company said the facility will cover approximately 70% of the required funding, while the rest will be used from the company's internal cash. The total investment of SSI Tower is around USD180 million or about Rp2 tn. The marketing sales...

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Today's Headlines - 20 Agustus 2014

Expansion to ASEAN: SMGR Soon Completes Acquisition of Plant in Bangladesh (BI) Semen Indonesia prioritizes its acquisition of cement companies in Bangladesh to be completed soon in the near future. The company said, it is still possible to acquired more than one existing plant in Bangladesh. Bangladesh plant has a production capacity of 600,000 tons up to 1 million tons per year. In addition, the company also targets to finalize the process of expansion plans to Myanmar in the fourth quarter...

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Company update: BMRI

The management of BMRI emphasized earlier this year that it would place a high priority on its liquidity and assets quality over profitability amidst the higher interest rates environment. As a result, BMRI’s proportion of CASA has edged down to 64.3% as of June 2014 from 65.2% as of March 2014. Nonetheless, retail deposits dominated the bank’s deposits structure. This is significant since retail deposits should have a lower blended CoF than wholesale-based deposits. Besides having a well-diversified...

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Jasa Marga - July 2014 traffic volume: Seasonally low

Traffic was low in July 2014 due to the Lebaran holidays in the last week of the month. Overall, total traffic volume was down 7.1%m-m to 104mn vehicles in July, reflecting slower business activities in Greater Jakarta as the main traffic contributor. As a result, the daily average traffic volume was 10.1%m-m lower at 3.4mn vehicles in July. On a cumulative basis, however, the total traffic volume in 7M14 was still 2.7%y-y higher at 743mn vehicles with daily average traffic volume reaching 3.5mn...

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Preview IHSG 20 Agustus 2014

Seperti yang diprediksi sebelumnya, IHSG bergerak positif bersama dengan naiknya bursa Asia lainnya. IHSG berakhir menguat 0,16 persen ke level 5.165,17. Meredanya sementara ketegangan Rusia- kraina, dan turunnya harga minyak dunia membantu indeks saham regional terkerek naik. Bursa saham AS sendiri kembali ditutup naik tajam kemarin, dengan indeks Dow Jones yang menguat 0,48 persen ke level 16.919,59 dan Nasdaq Composite yang kembali menembus rekor tertinggi dalam 14 tahun dilevel 4.527,51....

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Today's Headlines - 19 Agustus 2014

AALI CPO Production Grew 16%y-y in July 2014 (ID) AALI CPO production grew 16.6%y-y to 973k tons in July 2014, while the average yield also improved to 12.6ton/ha. Year-to-date, Kalimantan area contributes up to 43% of company’s FFB production, while the rest comes from Sumatera and Sulawesi with contribution of 38.7% and 18.3%, respectively.  AALI Performance Predicted to Drop (BI) Astra Agro Lestari (AALI) bright performance in the first half 2014 certainly will not be repeated...

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Weekly Report - Outflows continue

Despite a lack of fresh catalysts, Indonesia’s equity market closed up 1.9%w-w, or in line with the regional markets which booked positive weekly returns. Net outflows, however, continued into the second week of August, with the MTD outflows reaching IDR1.29t. On the economic front, we believe the resumption of exports by Freeport will help to ease concerns on the trade deficit. And with the formation of the new government in October coupled with the announcement of the new cabinet, we expect the...

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Preview IHSG 19 Agustus 2014

IHSG bergerak flat menguat 0,15 persen ke level 5.156,75, sementara bursa regional Asia lainnya ditutup variatif. Rilis informasi terkini sektor properti China menunjukkan rata-rata harga rumah baru kembali turun 0,9 persen MoM dibulan Juli, setelah dibulan Juni melemah 0,5 persen. Namun jika dibandingkan dengan pada tahun lalu, harga rumah di China masih lebih tinggi 2,5 persen. Kondisi ini merupakan penurunan bulanan berturut-turut dalam 3 bulan terakhir. Disisi lain,...

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RAPBN 2015: The baseline for the next government

As is customary before Independence Day, President SBY gave his State of the Nation address on the draft state budget (RAPBN) of 2015, which is his last. Amidst the current transition, the draft state budget does not provide clarity on key developments next year, especially in the absence of fuel subsidy cuts, a crucial issue given that ballooning fuel subsidies have weighed on the budget and dampened economic growth. All in all, we see that the draft state budget of 2015 only projects a straight...

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Retail Sector - Still Shopping!

Underpinned by the festive season at the end of last month, retailers recorded strong performance in July 2014, with the average gross sales growth of the three retailers under our coverage reaching 20.4% y-y. SSG also impressed - the average year-to-date SSG reached 11.9% in July. Looking ahead, we believe the outlook for the sector remains sound, given: 1) buoyant consumer confidence – a positive sign for future demand, 2) the fact that all the retailers under our coverage have strong footholds...

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Today's Headlines - 18 Agustus 2014

Depok – Antasari Toll Road: Three SOE’s Contractors Wins the Project (BI)Three state-owned enterprises which also minority shareholders in PT Cintra Waspphutowa were appointed as the winning bidder in Depok - Antasari highway project worth Rp 3 trillion. The three state companies are Waskita, PP, and Hutama Karya. The joint operation of three state enterprises will start the clearing works following land released in late August 2014, while the process of loan disbursement amounting...

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Preview IHSG 18 Agustus 2014

Bursa Asia menguat terkecuali IHSG yang turun 0,13 persen kelevel 5,148.96. Penguatan ini menyusul naiknya bursa AS sehari sebelumnya. Dari kawasan Timur Tengah, Israel dan Palestina sepakat memperpanjang gencatan senjata selama 5 hari kedepan. Sementara itu bursa Dow Jones memerah akhir pekan lalu. Sentimen negatif dari ketegangan Rusia dan Ukraina, kembali menekan pasar. Indeks Dow Jones turun 0,30 persen ke level 16.662,91. Informasi ekonomi AS terkini antara lain adalah...

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Today's Headlines - 14 Agustus 2014

Alam Sutera Launch Indigo Tower (ID)ASRI aggressively build apartments in the Kota Ayodhya superblock, Tangerang, Banten, by launching the fourth apartment tower named Indigo. Previously, the three towers have been sold and received a positive response from the market. The price for this fourth tower increased by 11.5% from the initial price of Rp238 million to Rp265 million per unit. Indigo tower will consist of 828 units and ready to be launched into the market on August 16, 2014.Comment:...

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Preview IHSG 14 Agustus 2014

Bursa regional menguat diperdagangan kemarin, termasuk IHSG. IHSG naik 0,70 persen ke level 5.168,27. Sejumlah berita ekonomi positif menjadi sentimen penggerak pasar. Rilis GDP Jepang menunjukkan ekonomi Jepang berkontraksi pada triwulan kedua 2014. GDP Q2 2014 turun sebesar 6,8 persen, setelah mampu tumbuh 6,7 persen di Q1 2014. Perkembangan ini sebenarnya sesuai dengan...

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