12:13 am April 25, 2014 | No Comment
Consumer goods firm Unilever Indonesia posted a decline in net income in the first quarter this year on a weaker rupiah and higher raw material costs.
11:44 pm April 24, 2014 | No Comment
Jakarta Globe The government has delayed the planned merger of state-owned lenders Bank Mandiri and Bank Tabungan Negara, saying it wants to avoid any political fallout ahead of the presidential election in July. “Strategic policy that can affect state fiscal, state revenue, employment or have a wide impact should be assessed very carefully,” Hatta Rajasa, the coordinating minister for the economy, said on Thursday. The planned acquisition by Mandiri, the country’s largest lender by assets, of BTN, the largest mortgage lender, was proposed by State Enterprises Minister Dahlan Iskan last week. The plan would create a bank with potential assets of Rp 900 trillion ($77.4 billion), catching up to Southeast Asian giants such Singapore’s DBS and Malaysia’s CIMB. The plan, however, met with fierce opposition from BTN employees concerned about their jobs under Mandiri’s control. Hatta said President Susilo Bambang Yudhoyono would prefer that Mandiri put off the acquisition until after the next government was in office. “This is not a question of whether the BTN acquisition is good. The president just wants it better managed,” he said. Dipo Alam, the cabinet secretary, said late on Wednesday that the president had instructed all state officials, including Dahlan, as well as Mandiri and BTN’s president directors, to back down from any policies that could prove controversial. But analysts say the country may lose precious momentum consolidating its banking sector. Reza Priyabada, head of research at Trust Securities, said the Mandiri-BTN tie-up could support the country’s home financing industry. “The SOE Ministry plan was strategic and could have produced a powerful bank. Mandiri and BTN synergy would enable them to compete not only in Indonesia but in Asean,” Reza said. “Indonesia needs a stronger and bigger bank to fulfill people’s demand and drive faster economic growth,” Rosan P. Roslani, the deputy for banking and finance at the Indonesian Chamber of Commerce and Industry (Kadin), said on Thursday. BTN’s loan-to-deposit ratio exceeds 100 percent, prompting a dire need for the lender to expand its capital and collect more deposit from customers in order to expand its mortgage business. On the other hand, Mandiri’s penetration in home financing is limited, but it has strong capital and more branches. Markets reacted negatively to the news on Thursday, with BTN shares falling 7.3 percent to Rp 1,210 and Mandiri down 0.3 percent to Rp 9,875 a share.
9:41 am April 24, 2014 | No Comment
Apple on Wednesday courted investors with stock split plans as hot iPhone sales pushed up profits while underscoring pressure for the company to unveil “the next big thing.”
9:34 am April 24, 2014 | No Comment
Facebook delivered its strongest revenue growth in several years during the first quarter, as its mobile ad business gained steam, but the company made it clear that other money-making efforts such as video ads and ads within its Instagram photo-sharing app would not bear fruit in the near future.
6:33 pm April 23, 2014 | No Comment
Bank UOB Indonesia plans to raise Rp 1 trillion ($86 million) from selling bonds next month, making it the first Indonesian lender selling notes to comply with Basel III requirements.