I n d o n e s i a D a i l y Thursday, 15 October 2015

PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. REGIONAL MARKET
Market Close +/- Chg (%)
MSCI Indonesia 5,213.7 - -
AT A GLANCE MSCI Asia-Ex Japan 517.8 (2.3) (0.4)
KLCI 1,711.1 - -
Corporate Page 2
FSSTI 2,983.9 (1.0) (0.0)
Bank Rakyat Indonesia: Signs CSPA with Pension Fund of Bank BRI to acquire SET 1,405.1 (1.6) (0.1)
Hang Seng 22,439.9 (160.5) (0.7)
Bringin Life. Nikkei 17,891.0 (343.7) (1.9)
Shanghai Comp 3,262.4 (30.8) (0.9)
Blue Bird: Absorbs Rp2.29t of IPO funds. Dow Jones 16,924.8 (157.1) (0.9)
Garuda Indonesia: Prepares capex of US$150m. Source: Bloomberg

Industri Jamu Dan Farmasi Sido Muncul: To export Tolak Angin Care. INDONESIA STOCK EXCHANGE
Level +/- Chg (%)
Kalbe Farma: To have a JV with Genexine. Index 4,483.1 0.0 0.0
LQ-45 763.1 0.0 0.0
Pan Brothers: Secures loans of US$270m. Value (US$m) 461.0 0.0 0.0

Sinarmas Land: To enter property business in London. FOREIGN TRADE IN IDX

Net (US$m) Buy Sell Total (%)
Sector Page 2 (25.5) 179.7 205.2 41.7
Cement: Sep 15 domestic sales volume improves 7.8% mom and 2.8% yoy to 5.7mt.
TOP VOLUME
Coal mining: Lower coal price for mine-mount power plant. Company Price Chg Volume
(Rp) (%) ('000)
Bumi Resources 75 (9.6) 425,110
Energi Mega Persada 52 (8.8) 371,372
Lippo Karawaci 1,225 2.1 136,626
Pakuwon Jati 385 (6.8) 100,586
Telkom Indonesia 2,640 (2.0) 93,278

TOP GAINERS
Company Price Chg Volume
(Rp) (%) ('000)
Bentoel Int'l 470 2.2 0.1
Lippo Karawaci 1,225 2.1 136,626
Wijaya Karya 3,050 1.7 14,017
Multi Bintang 8,200 1.2 27
Adira Dinamika 3,950 0.8 11

TOP LOSERS
Company Price Chg Volume
(Rp) (%) ('000)
Global Mediacom 990 (10.0) 13,235
Indocement TP 17,525 (9.7) 4,875
Bumi Resources 75 (9.6) 425,110
Adaro Energy 635 (9.3) 64,542
Energi Mega Persada 52 (8.8) 371,372

COMMODITY TREND
14 Oct 15 Chg (%)
Closing 1-day 1-mth
Forex (Rp/US$) 13574.0 (0.5) (5.3)
Crude Oil NYMEX (US$/bbl) 46.6 (0.0) 6.0
Coal Fut Amst (US$/tonne) n.a. n.a. n.a.
Nickel 3M LME 10480.0 0.0 5.6
Tin 3M LME 16100.0 1.3 3.2
Gold SPOT (US$/oz) 1167.4 1.2 5.5
CPO Fut Msia (MYR/tonne) 2269.0 0.0 9.0
Source: Bloomberg, UOB Kay Hian

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I n d o n e s i a D a i l y Thursday, 15 October 2015

CORPORATE
Bank Rakyat Indonesia: Signs CSPA with Pension Fund of Bank BRI to acquire Bringin Life. Bank Rakyat Indonesia
(BBRI) has finally signed a conditional sale and purchase agreement (CSPA) with the pension fund of BRI for the acquisition of PT
Asuransi Jiwa Bringin Sejahtera (Bringin Life). (Source: Investor Daily)
Comment: After years of speculation and rumours, BBRI has finally signed a CSPA with the pension fund of Bank BRI for the acquisition of
PT Asuransi Jiwa Bringin Sejahtera (Bringin Life). The pension fund of BRI holds 90.2% shares of Bringin Life while the rest of the shares
belong to the foundation of BRI employees. Since last year, Bank BRI has set aside Rp2t for a potential acquisition despite never having
admitted or disclosed any other information for this deal. The final amount of the deal has not been set yet. Following in the footsteps of
other major banks, Bank BRI is also slowly trying to grow its business outside of core banking services. As of this moment, Bank BRI has
only three subsidiaries namely BRI Syariah, BRI agro and BRI remittance. The addition of insurance business is certainly a positive step
for the company. The total premium revenue of Bringin Life is around Rp900b and has a risk-based capital ratio of 162% as of 1H15. We
expect Bank BRI to grow further its new insurance business through its vast network.

Blue Bird: Absorbs Rp2.29t of IPO funds. Blue Bird (BIRD) has absorbed 99% of the IPO fund or equivalent to Rp2.29t from the
total net IPO fund of Rp2.31t. The funds will be allocated to debt repayment to Bank Bukopin, BCA, OCBC NISP Bank, ANZ Bank, DBS
Bank, Permata Bank and CIMB Niaga Bank with a total amount of Rp1.25t. BIRD has also acquired new piece of land and building worth
Rp300.56b and purchased new fleets of car with total investment of Rp1.05t. (Source: Bisnis Indonesia)

Garuda Indonesia: Prepares capex of US$150m. Garuda Indonesia (GIAA) is preparing capex of US$150m for 2016, up by 11.1%
yoy from US$135m capex allocation this year. The capex will be used to finance the training programmes and to improve its service
operation. The capex allocation excludes the funds to buy new airplanes. (Source: Investor Daily)

Industri Jamu Dan Farmasi Sido Muncul: To export Tolak Angin Care. In H15, Industri Jamu Dan Farmasi Sido Muncul
(SIDO) expects to export Tolak Angin Care in order to increase its export sales. Tolak Angin Care is a roll-on ointment oil in glass
packaging. Besides developing Tolak Angin Care, the company also develops products of Tolak LInu and Kuku Bima ready to drink. The
company also wants to expand its export destination to the Philippines. (Source: Kontan)

Kalbe Farma: To have a JV with Genexine. Kalbe Farma (KLBF) has established a JV with Genexine, a company from South
Korea, with 40% and 60% ownership respectively. The JV company is named Kalbe-Genexine Biologics and will develop
biopharmaceutical products. Both companies have allocated Rp130b in total as initial investment of the new JV company. (Source:
Investor Daily)

Pan Brothers: Secures loans of US$270m. Pan Brothers (PBRX) has secured syndicate bank loans worth US$270m from 20 banks.
The loans consist of two types of loans, which are US$40m term loan and US$230m revolving credit. The term and revolving credit have
maturity of five and three years respectively. The loans will be used to pay off syndicated loans that were taken up in 2013 and to finance
the working capital. (Source: Kontan)

Sinarmas Land: To enter property business in London. Since Jun 13, Sinarmas Land, the parent company of Bumi Serpong
Damai (BSDE), Duta Pertiwi (BUTI) and Puradelta Lestari (DMAS) has spent Rp9.5t or S$1m for its property expansion in London. The
Rp9.5t investment includes the acquisition of a commercial building of Alphabeta Building (AB) with total transaction at S$558.5m or Rp5.5t.
The company plans to expand its property business in London and other European countries to diversify its property business portfolio.
(Source: Investor Daily)

SECTOR
Cement: Sep 15 domestic sales volume improve 7.8% mom and 2.8% yoy to 5.7mt. The Indonesia Cement Association
(ASI) reported that Sep-15 domestic sales reached 5.7mt (+0.7% yoy) with export sales of 118,000 tonnes (+257% yoy). Sep 15 monthly
sales improved by a strong 7.8% mom, translating into Sep 15 sales being the highest monthly sales ytd. 9M15 domestic sales hit 42.3mt
(-2.1% yoy) with export sales of 248,600 tonnes (+224% yoy). INTP still maintained its market share of 28%, while SMGR had 43% and
SMCB had 15%. Top sales performer is SMBR with sales volume reaching 1.1mt or +28% yoy. 9M15 bulk sales improved 3.2% yoy to
9.6mt, while bag sales declined by 3.6% yoy to 32.5mt. (Source: Investor Daily)
Comment: ASI’s monthly data in Sep 15 showed that cement sales volume hit monthly record high of 5.7mt, which is within market
expectation. Some may attribute the robust Aug 15 sales to the carry-forward effect from low cement demand in Jul 15 because of Hari
Raya. However, another strong monthly sales in Sep 15 shows that cement demand is normalising. Positive cement sales in Sep 15 is
chiefly due to: a) the government's executions of infra projects, b) more property launchings, and c) better economy in 2H15. If monthly
sales volume is maintained above 5mt in the remaining three months of the year, we believe our 2015 sales volume target of 60mt is likely
to be achievable. Reiterate OVERWEIGHT on the cement sector with Indocement (INTP) as our top pick for its strong presence in high
cement demand provinces (eg. West Java, DKI Jakarta and Banten), strong pricing power, better margins and clean balance sheet
position.

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I n d o n e s i a D a i l y Thursday, 15 October 2015

Coal mining: Lower coal price for mine-mount power plant. The coal prices for mine-mouth power plants will be lower after the
government determines the new value ranges for the cost components. The new provision is regulated in the Decree of Director General of
Mineral and Coal issued on 2 Oct 15. In the new regulation, the cost component values from the previous decree are determined as ceiling
values. The government has also determined the floor values. For instance, the cost of overburden removal was previously set at US$2.41
per bank cubic meter (bcm). Now, the value has become the ceiling value, with the floor value of US$2.17 per bcm. Similar adjustments
apply to other cost components with the value components that are 9-50% lower than the ceiling values. As such, the producers who can
control the production cost and carry out efficiency will have a bigger chance of winning the contract bid. The unchanged components
include royalties of 20.3% and gross margin of 25%. The Director General of Mineral and Coal says that the revision was done to achieve
more competitive pricing among producers, and was carried out as the coal reference price (HBA) continues to decline and estimated to
stay lower for longer period. The HBA has declined 7.26% from US$64.64 per tonne in Dec 14 to US$57.39 in Oct 15. The Indonesia Coal
Mining Association hopes that the coal price revision for mine-mount power plant could support the government’s 35,000 MW programme.
The low-rank coals with low selling price are expected to be primarily used by mine-mouth power plants. (Source: Bisnis Indonesia)
Comment: We view that the new regulation is unlikely to have significant negative impacts on major coal producers such as ADRO, PTBA
and ITMG, given that these producers mainly produce medium to high-rank coals. Moreover, this development could have a positive
impact as the government guarantees a gross margin of 25% for their low-rank coals that are mostly uneconomical to be transported far
outside the mining area given their low selling prices.

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I n d o n e s i a D a i l y Thursday, 15 October 2015

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I n d o n e s i a D a i l y Thursday, 15 October 2015

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