• Garuda Indonesia Prepares Rights Issue and Bond Issuance

    Garuda Indonesia, one of the major airlines in Indonesia, has announced to conduct a rights issue in October 2013. Through the rights issue, which involves the issuance of 10 percent of new shares, Garuda aims to reap USD $200 million. Garuda was a fully state-owned company before its initial public offering (IPO) in early 2011 when it released 30 percent of its shares. However, Indonesia's House of Representatives (DPR) had approved total public offering up to 40 percent. The remaining 10 percent is now offered through the rights issuance.

    Read column ›

  • Indonesia's Economic Growth in Q2-2013 Projected at Six Percent

    The slowing pace of investments has made the Indonesian government decide to revise down its forecast for economic growth in the second quarter of 2013. Minister of Finance, M. Chatib Basri, believes that GDP growth will not exceed the six percent threshold in Q2-2013. He explained that there are a number of factors that refrain the government from setting a higher growth assumption. These factors include ailing exports, non-optimal government spending, and diminishing gross fixed capital investment.

    Read column ›

  • State-Owned Cement Producer Semen Baturaja Conducts IPO

    State-owned cement producer Semen Baturaja invites investors to its initial public offering (IPO) between 29 May and 7 June 2013 at the Ritz Carlton Pacific Place in Jakarta. Through this IPO, the company offers 2.34 billion shares (about 23.76 percent of its stock equity) to the public with an initial price target of IDR 500 - 685 per share (USD $0.05 - $0.07). Semen Baturaja will be listed on the Indonesia Stock Exchange (BEI) on 28 June 2013. The lead underwriters for this IPO are Bahana Securities, Danareksa Securities and Mandiri Securities.

    Read column ›

  • Indonesian Government Will Issue Global Sukuk and ORI in October

    The government of Indonesia plans to issue global sukuk (the Islamic equivalent of bonds) and retail bonds (Obligasi Ritel Indonesia, abbreviated ORI) in October 2013. Proceeds from the bond issuances will be used to finance the budget deficit, which is targeted at 2.48 percent of gross domestic product (GDP) in the 2013 Revised State Budget (APBN-P). This percentage figure is equivalent to IDR 233.7 trillion (USD $23.82 billion), and represents a robust increase compared to the deficit in 2012 (at 1.77 percent of GDP).

    Read column ›