Bapepam Revoke Licenses PT Infiniti Finance
Finance November 16th, 2009
Capital Market Supervisory Agency and Financial Institution (Bappeam LK) revoke the business licenses on behalf of finance company PT Infiniti Finance.
“With this repeal, Infiniti Finance, PT prohibited from engaging in the activities of finance companies,” said Sekrtetaris Bapepam Ngalim Sawega LK, Revocation by the Minister of Finance Decree, present ebb since October 8, 2008, in a written statement published in Jakarta, Wednesday (18 / 11/2009).
The settlement of the rights and obligations of PT Infiniti Finance carried out in accordance with statutory provisions in force.
Australian boy Until Kelabui Bank USD250 thousand
Credit & Loan November 14th, 2009
A 15-year-old boy from Australia, USD250.000 fined for attempting to bank fraud via the internet.
As quoted by the Sydney Morning Herald, Monday (8/9/2008), a kid is still a secret identity, first tried to register the names of six companies to obtain business in a bank account. Strategy that he did was quite unique because, to avoid suspicion, he opened several accounts from different institutions.
“He then wrote a check that will be used to pay debts, buy goods and open the following bank account,” the prosecutor said of the juvenile court in Perth Simon Formby.
In addition to counterfeit checks, the child also has a credit card theft of two fast-food restaurant customers where she worked. Even he has to do transactions by phone with credit card but the bank knew the problem and cancel the transaction as soon as possible. When the thief is a transaction for the second time the bank will immediately call the police. The police also managed to track down and subdue the child in their home.
Australian citizen child is found guilty of fraud 33 times between March 10 until July 3. In fact he is guilty for having deceived the banks with counterfeit checks. If he managed to melt the entire check and credit card is then he managed to get approximately USD250.000. Unfortunately, not all successful transactions ditembusnya. However, he has collected approximately USD10.000.
Although actors are still under age, but the court still would imprison him, but the punishment is certain fines on him. According to the judge, the penalty is still imposed because the child must realize that the crime he did really a crime.
Login Register Rupiah Currency Weakest 10th in the World
Forex November 14th, 2009
Rupiah inserted into ten groups of the weakest currencies in the world. This is caused by fluctuations due to the volatility of the rupiah by many speculators.
This was revealed by the Director of Currency Management Group (CMG) Farial Anwar, now a journalist workshop on economic and monetary BI & Monetary Instruments Foreign Exchange Market, in Bandung, West Java, on Friday (5/12/2008).
He mentions, from 10 eyes of the world’s weakest currency, the rupiah is ranked sixth after Vietnam and Saubomi. The first rank in the occupied by Zimbabwe, followed by Somalia and Turkmenistan.
Farial explained, poor rupiah volatility due to very large, which is currently down sharply compared to other currencies.
In December 2007 compared to December 2008, the rupiah fell 28 percent from the level of Rp9.000 to Rp12.000 per U.S. dollar.
“Unlike the Thai currency Bath, in December 2007 compared to December 2008 only down five percent from 33.69 to 35.55 Bath Bath per USD,” he said.
Bad predicate rupiah, when it was recognized by the Bureau of Monetary Policy Hendar BI. However, he stressed in previous years, the rupiah has also been achieved as the best currency.
Farial added, there are some very simple reasons volatile rupiah against the U.S. dollar, such as free foreign exchange regime, the system of freely floating exchange rate, forex loans, and dependence on large U.S. dollar.
In addition, Farial also revealed, the placement of foreign funds in SBI also be a factor weakening rupiah. Therefore, steps anticipation of weakening rupiah happens, all derivative transactions undertaken by the company must have its underlying transaction.
However, with restrictions on the purchase of dollars with no underlying transaction up to USD 100 thousand per month, this policy affects the dollar to decrease speculation.
“Why let in foreign kok SBI, SBI but not for domestic monetary management, let alone we must also pay interest to foreigners, it is better for society,” he said.
Japan Central Bank Interest Rates Hold at 0.1%
Bank November 8th, 2009
Bank of Japan (Bank of Japan / BoJ) held its main rate at 0.1 percent level. No change in Japanese interest rates do to overcome deflation of the country that has the second largest economy on earth.
At the same time, the BoJ also revised estimate of economic growth will shrink by 2.5 per cent in this financial year until March before finally going to rebound by 1.3 percent next year.
“Japan’s economy took its main policy measures both within and outside the country. Although there is no momentum is sufficient to support recovery independently in domestic private demand,” he disclosed the BoJ said in a statement, as quoted by the AFP, Tuesday (26/1/2010 ).
In October, the BoJ has estimated the economic contraction of 3.2 percent in Japan where gross domestic product this year followed by a 1.2 percent expansion for next year.
Own central bank to maintain projected that Japan’s economy will see deflation during the next three years as returned from the worst downturn in decades. But the BoJ said that the possibility of prices going down than previously thought.
As for consumer prices fell 1.5 percent estimated in the current financial year, followed by a further decline in the next year by 0.5 percent and 0.2 percent next year.
In October it also projected consumer prices will fall from 1.5 percent this year, 0.8 percent next year, and 0.4 percent the year after that. “The bank admitted that it is the most important challenges for the Japanese economy to overcome deflation and back to a sustainable growth path with price menyetabilkan,” he added.
As is known, Japan stuck in a deflationary spiral for years after the asset price bubble that burst in early 1990. This is hitting corporate earnings and encourage consumers to delay purchases in the hope of further price falls.
The current global economic downturn and decline in commodity costs pushed the country back into deflation rate. Core consumer prices in November were recorded fall in year on year for the past nine months.
Parse and Debt Expansion Scheme, the Great PT BUMI Resources
Finance November 6th, 2009
No one else shares the spotlight with a very critical in Indonesian capital market universe as shares of PT Bumi Resources Tbk (BUMI), at least for now.
So critical, sometimes mistaken perception of follow-up facts. Yes, the storm rumors incessant strikes solid buildings owned conglomerate that had ranked the richest man in Indonesia, Aburizal Bakrie.
PT Bakrie & Brothers Tbk (BNBR) claim still holds 16% stake BUMI. But data PT Indonesian Central Securities Custodian (KSEI) recorded no single company or investors who own shares BUMI more than 5%. Apart from that, hard to let go of BUMI from the association with the Bakrie group.
And maybe that’s why the rumors and speculation as if a friend who lived closest to the BUMI. Because the parent did not escape the rumors an attack.
But what could I do, step and Bakrie group business strategy is often controversial. Doings of brave nan extreme behavior Bakrie group has been blamed to be one cause of the stock market collapse in 2008. But Bakrie Group’s success in making money also departs from the same strategy.
So was the BUMI. Largest coal companies in Indonesia as well as the largest coal exporter in the world, are now facing a myriad of questions and speculation market players due to the action of debt to U.S. $ 3.325 billion, which may increase again to the front.
BUMI accused of reckless action by the debt. Market participants then talked position BUMI debt burden, its impact on short-term performance of the company, until mengkait-kaitkannya with political campaign funds Aburizal Bakrie.
“Many people do not understand their own and then speculate about what we were doing. Even to this loan pointing to a political fund. It is not logical,” said SVP Investor Relations BUMI, Dileep Srivastava, in talk with detikFinance bincangnya, Monday (7 / 12 / 2009).
According to Dileep, speculation and rumors that developed among market participants do not have a clear basis. Especially about the position of the debt burden as often discussed BUMI market participants.
“People tend to see the impact that occurred within the short term, rather than see what we achieve and the benefits we would give our shareholders in the future,” said Dileep.
Dileep acknowledged that the expansion scheme which is being prepared may be classified as extreme BUMI and too brave. But according to him, BUMI did it not without calculation.
“The situation is similar when we decided to take over the KPC (PT Kaltim Prima Coal) and Arutmin (PT Arutmin Indonesia). When that many say we are too desperate to expand,” said Dileep.
BUMI took over 80% stake in Arutmin from BHP Billiton in 2001. The remaining 20% which is owned by PT Indonesia Ekakarsa Yasakarya which is also the Bakrie family group company completed in 2004.
KPC formerly owned British Petroleum and Rio Tinto with their respective ownership of 50%. BUMI KPC took over completely in 2003.
BUMI which was then a small energy company piecemeal, as a form of business change from previous businesses in the tourism sector which manages the hotel business in Uzbekistan, then get a reaction from market participants.
“In the midst of current economic conditions, in which banks provided loans difficult unless a high-interest, people wonder why we take high interest loans and great value. Worth a total of about U.S. $ 1.1 billion,” said Dileep.
With a loan of it, certainly not a party which he doubted whether BUMI management can continue to grow with the burden of debt and interest expense to be borne.
“As a result, all people can prove. In the years 2007-2008, we paid all the debt of U.S. $ 1.1 billion and the BUMI into a big company with zero debt (zero debt), only with a 30% stake in KPC and Arutmin to Tata,” explained.
“You are investing billions of dollars and all return in just 4 years. Are there other companies that are able to do this other than BUMI?” he added.
Dileep optimistic attitude really justified. With investment of U.S. $ 1.1 billion that they say desperate, BUMI managed to pay off all at once scored EBITDA (earnings before interest, taxes, and amortization demortisasi) highest in the history of the company in 2008.
“BUMI to pay off the entire debt of U.S. $ 1.1 billion in 2008, along with increased production of up to 2-fold in 2008. And therefore, our EBITDA was the highest score ever achieved in the year 2008,” he said.
BUMI coal production of 40 million tons in 2003. In 2008, coal production rose to 52.8 BUMI million tons. BUMI income in 2004 amounted to Rp 9.811 trillion. In the year 2008, revenues approaching BUMI: U.S. $ 4 billion (nearly USD 40 trillion).
BUMI net profit in 2004 amounted to Rp 1.21 trillion. In the year 2008, net income increased dramatically BUMI to U.S. $ 654 million (approximately USD 6.5 trillion).
The intricacies of debt is U.S. $ 3.325 Billion
Success of KPC and Arutmin acquisition, BUMI is now planning a massive ekspasi. Since the period August to December 2009, BUMI giant funding reached with a total value reached U.S. $ 3.325 billion.
Here’s a list of external funding obtained BUMI:
On August 5, 2009, BUMI through Enercoal Resources Pte Ltd issued convertible bonds worth U.S. $ 375 million. This convertible bond 5-year term with a fixed interest coupon of 9.25%. BUMI provide cash settlement options on this convertible bond maturity in 2014.
In September 2009, BUMI through the BUMI Netherlands BV won the giant loan from China Investment Corporation (CIC) worth U.S. $ 1.9 billion. This loan is divided into 3 structures of the first loan of U.S. $ 600 million 4-year term, the second loan of U.S. $ 600 million 5-year term and the third loan of U.S. $ 700 million 6-year term. Three berkupon loan interest rate of 12% a year with the addition of the Internal Rate of Return (IRR) of 7% during each of these loans fall due.
On November 13, 2009, BUMI conventional issue bonds worth U.S. $ 300 million. 7th term bonds this year to give a coupon interest rate of 12% per year.
On November 25, 2009, BUMI through Enercoal, once again issued convertible bonds worth U.S. $ 300 million. This convertible bond tenor 7 years with a coupon rate of 5%.
BUMI also obtained a loan facility worth U.S. $ 300 million from Credit Suisse.
Latest, BUMI short-term loans reached 6 months of JP Morgan worth U.S. $ 150 million on December 7, 2009.
Details of the use of these funds as follows:
Investments and acquisitions worth U.S. $ 1.419 billion.
Refinancing debt (refinancing) worth U.S. $ 1.3 billion.
Capital expenditure (capital expenditure / capex) worth U.S. $ 314 million.
Equity swap worth U.S. $ 240 million.
Cap called option on convertible bonds worth U.S. $ 52 million.
According to Dileep, BUMI could not do refinancing of its debts worth U.S. $ 1.3 billion because the company still has internal cash of U.S. $ 1 billion.
“We have a loan of U.S. $ 1,2-1,3 billion which will mature in 2009, 2010 and 2011. Our internal cash sufficient to pay it off, there are currently around U.S. $ 1 billion,” he said.
BUMI Organic Expansion Scheme
Dileep said that, if the company does not reach a new financing with longer maturity than the loans that will mature in 2009-2011, then the internal cash is not available for project development.
“With this new funding, which the new payment will begin in 2013, we have the flexibility to use our internal cash. The funds will be used for project development Herald, Gorontalo, Citra Palu, Mauritania, Fajar Bumi Sakti (FBS) and Pendopo, “Dileep said.
Following the project development scheme:
Herald Resources Ltd (lead and zinc) amounted to U.S. $ 211 million. Schedule operations in 2011. Projected increase in EBITDA of U.S. $ 150 million per year.
Gorontalo (gold) and Citra Palu (copper) of U.S. $ 500 million. Schedule operations in 2013. Projected increase in EBITDA of U.S. $ 900 million per year.
Mauritania (iron ore) is U.S. $ 300 million. The operation is scheduled in 2013. Projected increase in EBITDA of U.S. $ 250 million per year.
FBS and Pendopo (coal) amounted to U.S. $ 150 million. Schedule operations in 2011-2013. Projected increase in EBITDA of U.S. $ 100 million per year.
4 Total investment in these projects reached U.S. $ 1.161 billion to be financed from internal cash BUMI who has freely for use after the refinancing of debt maturing 2009-2011.
In addition, the BUMI is also targeting coal production of KPC and Arutmin 111 million tons in 2012. For that, two golden child of this BUMI will capex budget of U.S. $ 1.1 billion.
“KPC and Arutmin fund the production capacity of their own internal cash. So do not come from cash BUMI. Through increased capacity to 111 million tons in 2012, EBITDA will rise to U.S. $ 800 million per year,” said Dileep.
Thus, the total investment value BUMI KPC and Arutmin and reached U.S. $ 2.261 billion. However, EBITDA increased projection of all this development reached U.S. $ 2.2 billion per year, worth the money to be disbursed.
4 Because the project development using internal cash BUMI and the KPC and Arutmin capex from internal cash itself, then the BUMI is still a fund acquisitions and investment of U.S. $ 1.419 billion.
“As much as U.S. $ 500 million used for repayment immediately Fajar Bumi Sakti acquisition, Pendopo and Darma Henwa,” said Dileep.
Dileep Although not mentioned in detail, but after deducting U.S. $ 500 million is, roughly BUMI still has a fresh funds for investment and acquisitions of U.S. $ 919 million.
Newmont Acquisitions
The next expansion scheme is the acquisition of Newmont. Dileep spoke up about this.
“Most of the remaining funds will be disbursed to the PT Multi Region Compete (MDB) in the form of loans to acquire 24% stake in Newmont,” said Dileep.
MDB is a joint venture between PT Multicapital (75%) and the regional government of West Nusa Tenggara (25%) in the acquisition of 24% stake in PT Newmont Nusa Tenggara. Multicapital an BUMI subsidiary indirectly by ownership of 99%.
Total funds to be spent for the acquisition of MDB 24% stake in Newmont reached U.S. $ 884 million.
BUMI has disbursed loans amounting to U.S. $ 391 million to the MDB for the acquisition of Newmont’s 10% stake. In late December 2009, BUMI will return to lend U.S. $ 493 million to acquire 14% stake in Newmont rest.
About profits to be earned through the acquisition BUMI indirect 24% stake in Newmont has not yet been estimated. However, current projections, Newmont estimated net profit would more than U.S. $ 600 million in 2009.
“I can not say how the revenue will be obtained from Newmont in the future. But you calculate yourself based on Newmont’s profit projections for the portion of our ownership of Newmont,” he said.
Wishing all acquisition funds Newmont’s 24% stake for U.S. $ 884 million has been disbursed, the funds remaining roughly there are around U.S. $ 35 million.
Berau & BHP Billiton
BUMI expansion scheme does not stop until Newmont. BUMI is currently designing the expansion to the coal marketing sector. One of the first target is the follow-up to market the coal produced by PT Berau Coal recently acquired by Recapital Advisors.
“We will start investing in the marketing of coal. The purpose for forming the bargaining position of the formation of coal price in the market. Discussion are underway with Recapital,” he said.
Dileep also revealed the company’s follow-up to offer to the planned divestment of Coking coal mines. Unfortunately he did not mention his name.
But almost certainly, mining concessions referred Coking Coal is owned by BHP Billiton Maruwai located in East Kalimantan. Dileep is also not able to mention the funds perseroann prepared for this purpose.
“If necessary, we may seek funding again in the market,” he said.
Issuance of New Shares
Later the news was widely said that BUMI is planning for the issuance of new shares linked mengkait CIC would be a buyer standby (standby buyer) with the goal to shareholders BUMI.
Dileep spoke up about this. According to him, the issuance of new shares is one option under study company. About the CIC as a standby buyer, Dileep is also not able to provide certainty.
“According to regulations, it is possible to open a company issuing new shares to obtain funding. It’s one of the options we also examined if necessary. But what kind of mechanism, not yet finalized,” he said.
Thus the scheme would be all-debt expansion and the BUMI: it invites controversy. Though many doubted the potential for success, but admitted BUMI optimistic if all this works, then starting in 2013, BUMI will record a stunning financial performance.
“Our projections, starting in 2013 revenues will double from what was achieved in 2008,” he said.
