Mandiri, Taspen, Pos Indonesia to Establish Joint Venture
Jakarta. Bank Mandiri, the country?s largest lender by asset, agreed on Thursday with state pension Taspen and state postal office Pos Indonesia to jointly own Bank Sinar Harapan Bali, a micro lender based in Bali, as part of their business plan to expand their reach in the region.
Under the joint venture partnership, Sinar Harapan Bali will issue new shares to be bought by Pos Indonesia and Taspen, bringing down Mandiri share to 59.6 percent. Pos Indonesia and Taspen will have 20.2 percent each in Sinar Harapan Bali. Budi Sadikin, Mandiri?s president director, said that the cooperation will expand the lender customer and service points across the archipelago, particularly to provide service to small and medium enterprises.
?Trough this joint venture, we support government program to provide access to financial services as widespread as possible,? Budi said.
Mandiri has 2,087 branches across the archipelago, around half the number of branches owned by Bank Rakyat Indonesia, the largest micro lender in world.
Pos Indonesia has 3,800 branches in the country, providing a fast lane for the joint venture to reach many Indonesian customers, said Budi Setiawan, president director of Pos Indonesia.
Taspen president director Iqbal Latanro said that Sinar Harapan Bali would provide loan to pensioners, who usually need the money for running their business.
?We hope this synergy would help pensioners to access cheaper and easier financing source,? Iqbal said.
The joint venture will also aims to provide loans to 4.4 million active civil servants in Indonesia.
Sinar Harapan Bali caters now mainly to smallholding farmers that trade in Bali?s wet markets. Mandiri took control Sinar Harapan Bali in 2008, as it expanding its reach in the resort island?s micro lending sector.
Profit at Mandiri, the largest lender by assets in Indonesia, rose 16 percent in the first six months this year, supported by strong lending growth.
The lender?s net income in the January-June period climbed 16 percent to Rp 9.6 trillion ($821 million) from the same period last year. Its net interest income jumped 20 percent to Rp 18.1 trillion.
Mandiri?s shares fell 0.2 percent to Rp 10,525 in Jakarta trading on Friday, in line with the 0.1 percent decline for the benchmark index as investors cashed in gain from the previous four trading days.
Telkom Eyes Middle East Expansion
Jakarta. Telekomunikasi Indonesia, the country?s largest telecommunications company, is planning to spend Rp 1 trillion ($86 millon) to finance its plan to expand to Middle Eastern countries by the end of this year.
Arief Yahya, president director of the company known as Telkom, said that the company chose the Middle East because there currently about 2 million Indonesians live in the region.
?Following the people means following the money, following the traffic and following the network,? Arief said in Jakarta on Thursday.
In the Middle East countries, Telkom will need to get a business license as a ?mobile virtual network operator? [MVNO] which allows the company to use the network footprint of its local partner in delivering services under Telkom?s brand.
?Telkom will look for a partner there, a local company that already has network footprint,? Arief said, adding that the company will put forward a prudent and efficient stance when approaching a certain local company.
Telkom will include the investment funds as part of its operational expenditures, which typically will affect the company?s profit, according to Arief.
Profit at Telkom rose 4 percent to Rp 7.41 trillion ($633 million) in the January-June period from Rp 7.12 trillion a year earlier, according to its financial statement to the Indonesia Stock Exchange (IDX).
The company targets its revenue to grow 16 percent to Rp 89.1 trillion this year.
Bandung-based Telkom has already expanded its market reach abroad to such countries as Hong Kong, Malaysia and China. In January last year, the company began its first mobile-network operations in East Timor, investing $50 million to operate a GSM and 3G telecom business.
Arief also said that Telkom plans to set aside $2 billion in capital expenditure next year, or around the same amount as this year?s allocation.
?About 70 percent of the capex will be used for financing its cellular business through Telkomsel,? said Arief referring to its mobile-network providing subsidiary. It will also spend 10 percent of the capital expenditure for infrastructure development, including telecommunications towers.
Telkom will allocate the remaining 20 percent to its broadband network business, which is operated by its fixed-line Speedy Internet service.
The company announced last week its commitment to set aside $200 million in cash to help finance Indonesian start-up companies.
JCI Falls for 1st Day in 5, as Unilever Drops
Jakarta. Indonesian stocks fell on Friday, a day after the Constitutional Court upheld Jokow Widodo to be the next president, as investors cashed in gains they made during the week.
The Jakarta Composite Index, lost 7.24 points, or 0.14 percent, to 5,198.89, paring a four-day, 1.1 percent gain. Around 5 billion shares valued at Rp 5.6 trillion ($479 million) were traded on the Indonesia Stock Exchange (IDX).
?The decline was because investors were taking profit as their expectations for the presidential election result became true,? Reza Priyambada, an analyst with the Trust Securities, told the Jakarta Globe on Friday.
Reza pointed out that the main stock gauge is expected to fall further next week as investors continue on selling their stock holding on the absence of fresh sentiment.
Reza noted that index movement would depend on several global sentiments such as the consumer confidence data in Europe and the United States, which are expected to be announced next week, and also the upcoming meeting between global central bank.
Declining shares beat gainers by 164 to 120. Foreign investors made up 44 percent of total trading by value. They sold Rp 71.6 billion more in shares more than they bought.
Consumer goods as a group declined 0.5 percent. Unilever Indonesia, the local arm of Anglo-Dutch consumer goods giant Unilever, fell 0.9 percent to Rp 31,600. Indofood Sukses Makmur, the world?s largest instant noodle producer, slid 1.5 percent to Rp 10,100.
The rupiah rose 0.5 percent to trade at 11,654 against the US dollar on Friday from 11,717 the previous day, based data from Bank Indonesia.
The yield on the government?s 10-year notes slipped to 8.3487 percent from 8.3671 percent a day earlier, according to Indonesia Bond Pricing Agency.
Baseball Great Curt Schilling: Chewing Tobacco ?Gave Me Cancer?
All-Star pitcher Curt Schilling was known for his toughness during his Major League Baseball career. Who can forget the bloody sock from the 2004 playoffs, when he helped the Boston Red Sox win their first World Series championship in 86 years?
Now Schilling is in another tough battle – against oral cancer that he today attributed to his longtime use of chewing tobacco. Schilling’s statement comes just months after Hall of Famer Tony Gwynn’s death from cancer that he, too, attributed to chewing tobacco.
For Back-To-School Supplies, Shop Tobacco-Free!
Attention back-to-school shoppers!
As you set out to fill your kids’ lockers and backpacks, you can also strike a blow for kids’ health – by shopping at CVS and other retailers who have chosen not to sell cigarettes and other tobacco products.
Tobacco use is the number one cause of preventable death in the United States. It kills nearly half a million American and costs us at least $289 billio
Youth Leaders Sharpen Skills for Fight against Tobacco
It's within our reach to create the first tobacco-free generation.
But we can't do it without the involvement of youth.
Last week, we welcomed more than 30 youth activists from across the country to Washington, DC, for our 11th Youth Advocacy Symposium — a series of skill-building workshops on leadership, advocacy and communications.
2 Europe navigation satellites in the wrong orbits
European space officials say they're investigating whether the inaccurate deployment of two satellites will complicate their efforts to develop a new Galileo satellite navigation system that would rival America's GPS network.
Volunteers told to monitor Jokowi, Kalla performance
President-elect Joko ?Jokowi? Widodo said that he hoped his supporters would monitor the implementation of his programs as the seventh president of the country after the People?s Consultative Assembly (MPR) inaugurated him in October.
Group D to secure Jokowi, Kalla
Personnel from Group D of the Presidential Security Detail (Paspampres) had been tasked with protecting president-elect Joko "Jokowi" Widodo and vice president-elect Jusuf Kalla until they have officially taken the oath of office on Oct. 20, Indonesian Military (TNI) chief spokesman Maj. Gen. M Fuad Basya said on Saturday.