• Citilink Plans IPO and Expansion in Indonesia's Low Cost Aviation Sector

    Citilink Indonesia, the low-budget unit of Garuda Indonesia, announced its intention to conduct an initial public offering (IPO) in 2015 by offering 30 percent of its stocks to the public. The Indonesian budget airline also plans to expand its fleet-size to 50 airplanes. However, before an IPO can be conducted, the company said it should improve its (financial) performance first. In 2012, Citilink Indonesia recorded an USD $28.4 million loss on operating revenues of USD $73.4 million.

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  • Bank Indonesia Raises its Interest Rate to 6.0% to Support the Rupiah

    The central bank of Indonesia (Bank Indonesia) decided today to raise its benchmark interest rate by 25 basis points to 6.0 percent. The decision was made amid concerns about the inflationary impact of a hike in subsidized fuel prices (planned this June) as well as increasing uncertainty in global financial markets as central banks' may scale back stimulus programs. The Indonesian rupiah has weakened considerably in 2013 and forms the worst performer in Asia after the Japanese yen among the 11 most-traded currencies tracked by Bloomberg.

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  • Perusahaan Gas Negara (PGN), Indonesia's Leading Gas Company

    Perusahaan Gas Negara (PGN) is a government controlled gas firm that forms Indonesia's largest natural gas transportation and distribution company. It operates a distribution network that extends for 3,865 kilometers and a transmission pipeline network that measures 2,047 kilometers. PGN plays an important role in Indonesia's electricity production as it sells about 40 percent of its total sales volume to the country's power generation industry. It also forms one of the largest Indonesian companies in terms of market capitalization.

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  • Indonesian Government Raises Royalty Fees in the Coal Mining Sector

    In order to increase government revenues, the Indonesian government announced that, starting from 2014, coal miners that have a Mining Business License (Izin Usaha Pertambangan/IUP) will have to pay a higher royalty fee to the central government. The decision was made during a meeting between the government and Commission XI of the House of Representatives (DPR) this week. The new royalty policy, which was originally planned to be introduced this year, is expected to result in an increase of IDR 4 trillion (USD $408.2 million) in state revenues.

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