Author: admingentala

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Market Capitalization of Allo Bank (BBHI) Enters the Top 10!

            Indonesia Composite Index (ICI) (well-known as IDX Composite) managed to record a positive performance last week and also managed to set a new record high in last weekend’s trading. Shares of PT Allo Bank Tbk (BBHI) managed to enter the top 10. According to data from the Indonesia Stock Exchange (IDX), last week, the ICI rose 0.49% point-to-point. In trading on Friday (21/1/2022) last weekend, the ICI closed up 1.5% to 6,726.37. During the week, the value of IDX Composite transactions tended to fall to Rp57.58 trillion. However, foreign investors still recorded a net buy of Rp1.24 trillion in the regular market. Of the total 10 largest market capitalizations (big-cap), as of Friday last weekend, it rose to Rp3,446 trillion, from the previous Rp3,402 trillion.

            Stocks that experienced a decline in market cap at the end of last week were PT Bank Rakyat Indonesia Tbk (BBRI) shares which fell to Rp626 trillion, PT Astra International Tbk (ASII) shares which also fell to Rp227 trillion, and shares in PT Unilever Indonesia Tbk (UNVR) to Rp158 trillion. Meanwhile, of the stocks that experienced an increase in market cap, PT Telkom Indonesia Tbk (TLKM) shares had the largest increase in market cap last week, which increased by Rp. 14 trillion to Rp429 trillion.

            Digital bank PT Allo Bank Tbk (BBHI) shares last weekend managed to occupy the top 10 big-cap stocks of over Rp100 trillion with a market cap of Rp132 trillion. Market capitalization or market cap is the market value of an issuer, the multiplication of the share price with the number of shares outstanding in the market, the greater the market cap value of the issuer, the greater the influence of the movement on the IDX composite movement.

Jan 24, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220124113005-17-309846/joss-market-cap-allo-bank–bbhi–masuk-jajaran-10-besar)

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Wow! Singtel and Grab Join Emtek Enter Fama Bank

            Eddy Kusnadi Sariaatmadja’s technology issuer, PT Elang Mahkota Teknologi Tbk (EMTK) announced the entry of a strategic partner to accelerate the company’s digital ecosystem at PT Bank Fama International. Previously, Elang Mahkota Teknologi (EMTK) through its subsidiary, PT Elang Media Visitama (EMV) has acquired the mini bank and is now the largest shareholder with a portion of 99.99% in Fama Bank.

            The two strategic investors who entered were Singtel Alpha Investments, a wholly-owned subsidiary of Singtel Telecommunication Limited, and A5-DB Holdings Pte. Ltd. which is a subsidiary of Grab. Elang Mahkota Teknologi (EMTK) Corporate Secretary Titi Maria Rusli said that Grab and Singtel had taken part, each with 2.35 billion new shares of Fama Bank or equivalent to 16.26% of the company’s issued and paid-up capital which had been increased. After the issuance of new shares was completed, EMV’s ownership in Fama Bank became 62.76%. Then, PT Nusantara Berkat Agung with 4.72%, Grab with 16.26%, and finally Singtel with 16.26%. This acquisition is a concrete step from the Singtel-Grab consortium to develop digital financial services in Indonesia.

            For information, at the end of 2020, the Monetary Authority of Singapore (MAS) said it would grant a fully digital bank license to the Grab-Singtel consortium and the technology giant which is Shopee’s parent company, Sea Group. This is the first and is anticipated in the liberalization of the financial industry. Unlike traditional banks, digital bank players will provide services to retail customers such as account opening, deposits, and debit and credit card issuance. However, digital banks will not be physically present and all banking services will be carried out online. This is different from traditional banks, such as DBS, OCBC, and United Overseas Bank which offer several banking services via the internet or mobile applications. Digital banks can also serve corporate customers.

Jan 21, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220121141839-17-309405/wow-singtel-grab-ikut-emtek-masuk-ke-bank-fama)

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Head of Bappenas: The National Capital is named ‘Nusantara’

            Indonesia’s state capital (IKN) will move to East Kalimantan (KalTim). The Minister of National Development Planning (PPN)/Head of Bappenas, Suharso Monoarfa, announced that the center of government is called Nusantara. “Regarding the name of the capital city, I originally wanted to include it at the time of writing the presidential decree but was later detained and I just received confirmation and direct orders from the President on Friday (14/1) and he said the capital city of this country is called Nusantara,” Suharso said.

            Suharso explained the reason behind naming Nusantara as Indonesia’s new state capital in East Kalimantan. “The reason is that Nusantara has been known for a long time and is iconic internationally, it is easy and describes our archipelago, all of us, the Republic of Indonesia, and I think we all agree with the term Nusantara,” he said.

            IKN Nusantara will become a special regional government unit at the provincial level whose territory is the seat of the state capital as stipulated and regulated by law. In the 2022-2024 period, major infrastructure developments such as the Presidential Palace, the DPR/MPR Building, and housing will be carried out. This includes the transfer of civil servants (PNS) of ministries and institutions in the early stages of 500.000. President Joko Widodo plans to celebrate the 79th Independence Day of the Republic of Indonesia in the IKN area on August 17, 2024.

Jan 17, 2022, DetikFinance

(https://finance.detik.com/properti/d-5901387/kepala-bappenas-ibu-kota-negara-namanya-nusantara)

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Jokowi Directly Reviewing Mandalika 2022 MotoGP Preparations

            President Joko Widodo visited Lombok, West Nusa Tenggara on Thursday (13/1). One of Jokowi’s agendas there is to directly review the preparations for the 2022 Mandalika MotoGP. Jokowi and First Lady Iriana departed from Jakarta at around 07.00 WIB. They used the Indonesia-1 Presidential Aircraft from the Halim Perdanakusuma Air Force Base.

            “Arrived at Lombok International Airport Zainuddin Abdul Madjid, Central Lombok Regency, President Jokowi is scheduled to review a number of airport facilities that will be used by MotoGP 2022 participants and spectators,” quoted from a written statement by the Presidential Secretariat. After that, Jokowi will visit the Mandalika Special Economic Zone (SEZ), Central Lombok Regency. He will review the readiness of the bypass route and supporting facilities in the area where the 2022 MotoGP will be held.

The former mayor of Solo will also inaugurate the launch of In journey Holding BUMN for Tourism and Support. The event was held at Kuta Mandalika Beach, Central Lombok Regency. This is Jokowi’s second working visit to Mandalika in the last three months. On November 12, 2021, Jokowi visited Mandalika to review the preparations for the Superbike World Championship (WSBK). At that time, Jokowi tested the circuit that would be used in WSBK. He rode a motorbike accompanied by a number of officials, such as PUPR Minister Basuki Hadimuljono and MPR Chairman Bambang Soesatyo.

Dorna CEO: MotoGP Mandalika in Indonesia is Important

            CEO of Dorna Sports, Carmelo Ezpeleta, revealed how important the MotoGP Mandalika 2022 in Indonesia is for the future of Grand Prix racing. Indonesia for the first time since 1997 will hold a MotoGP race. The Mandalika Circuit, Central Lombok, will hold the Mandalika MotoGP race on March 18-20, 2022.

            Ezpeleta at the EFE Forum Sports Business Days event in Spain, Thursday (13/1), revealed how important the Mandalika MotoGP race is in Indonesia. For Ezpeleta, the Southeast Asian region is very important for the MotoGP event, that’s why holding a race in Indonesia is very necessary. “Universality is very important for MotoGP, especially above all, when it is the Southeast Asian region,” said Ezpeleta as quoted by Mundo Deportivo.

            There are a total of 21 races in MotoGP 2022, including the Mandalika MotoGP in Indonesia. Ezpeleta said one of the conditions for a country to be able to hold a MotoGP race is that there is no long quarantine regulation. “The truth is, if they tell us that we have to be quarantined for 14 days, the answer is clear: No, I’m not coming! That’s the limit.” Said Ezpeleta. Currently, the Indonesian government is still implementing quarantine rules for 14 days, to prevent the new variant of Covid-19, Omicron. We’ll just see the regulations related to quarantine rules in the future.

January 13, 2022, CNN Indonesia

(https://www.cnnindonesia.com/nasional/20220113075441-20-745976/jokowi-tinjau-langsung-persiapan-motogp-mandalika-2022)

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/olahraga/20220114114159-156-746592/ceo-dorna-motogp-mandalika-di-indonesia-sangat-penting)

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G20 Economic Benefits Twice as Big as IMF Annual Meetings

            The Coordinating Ministry for Economic Affairs predicts that the economic benefits of the G20 2022 Presidency for Indonesia will be 1.5 to 2 times greater than the IMF World Bank Group Annual Meetings in 2018. Head of the Bureau of Communications, Information Services, and Sessions, Haryo Limanseto, said that a physical meeting in the series of G20 Presidents will boost domestic consumption. In addition, many MSMEs will be involved during the G20 Presidency.

“If the meeting is held physically, there will be an increase in domestic consumption of up to Rp. 1.7 trillion,” said Haryo on the official website of kemenkeu.go.id. In addition, physical meetings will also increase the national Gross Domestic Product (GDP) up to Rp7.4 trillion. Then, Haryo predicts that there will be a workforce absorbtion of 33.000 in various sectors. Another benefit of the G20 Presidency for Indonesia is international branding.

The G20 forum will also encourage investment from G20 members and international organizations in Indonesia. Then, the international event will also broaden the public’s knowledge, especially the younger generation. The G20 presidency will discuss various matters, such as the financial pathway and sherpa pathway.

The sherpa pathway is part of the engagement group represented by civil society organizations, so that the discussion results from the sherpa pathway are not limited to top-down interests, but also open up opportunities for various stakeholders. The sherpa pathway will also focus on empowering MSMEs, such as encouraging the digitization of MSMEs, training in the context of upskilling MSMEs, and encouraging various pro MSME policies. “Thus, the output of this forum could have an impact on the community,” said Haryo.

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/ekonomi/20220114093505-532-746484/manfaat-ekonomi-g20-dua-kali-lebih-besar-dari-imf-annual-meetings)

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Pluang Bags $55m Series B Funding from Accel to Grow Platform

            Integrated investment app Pluang, developed and managed by futures and crypto trading firm PT Bumi Santosa Cemerlang (BSC), has raised US$55 million in a Series B funding round led by the United States venture capital firm Accel. The latest funding round for the Indonesian fintech company, one of the fastest-growing in Southeast Asia, brings its total investments in 2021 to US$110 million and will enable it to further invest in its technological capabilities, expand its asset classes and widen the reach of its services.

            Considering Indonesia its home market, Pluang has recognized the country’s potential for economic expansion, attributable to its digitally driven culture and high population. Global investors have also identified the country as having high economic potential, bringing in $8.2 billion in investment for several start-ups in 2020 alone. Given its high rates of internet and smartphone penetration, as well as its savings per capita, which is expected to double over the next decade, the country provides a pathway for first-time investors to establish new money management habits that were previously impossible.

            “Providing mobile access to an easy-to-use investment product is a massive component of boosting financial literacy and financial inclusion throughout Indonesia, as well as Southeast Asia. With this additional funding, our team will be able to accelerate our momentum and provide the tools, resources, and education necessary to set up more customers for long-term wealth creation. We are absolutely thrilled to have the world-class team at Accel, as well as our other investors, supporting us in Pluang’s next growth stage.” said Pluang cofounder Claudia Kolonas.

            Pluang was founded by Claudia, a veteran in Indonesia’s financial services industry, and serial entrepreneur Richard Chua, who has experience at Google and at Bain & Company. Both co-founders are graduates of Harvard Business School.

January 13, 2022, The Jakarta Post

(https://www.thejakartapost.com/front-row/2022/01/13/pluang-bags-55m-series-b-funding-from-accel-to-grow-platform.html)

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Giant Moves Closer, Allo Bank Becomes a Serious Player for Indonesian Digital Bank

            Several leading technology companies in Southeast Asia have announced that they will invest in Indonesian digital bank issuers, marking the entry of Allo Bank Indonesia as the newest major player from the new economy sector into the banking industry in Indonesia. Several large companies such as CT Corp, Salim Group, PT Bukalapak.com Tbk (BUKA), Grab, Traveloka, Carro, and Growtheum Capital Partners to PT Allo Bank Indonesia Tbk (BBHI) will further enlarge Allo Bank’s business ecosystem going forward.

            The seven companies stated that they would absorb a total of 70% of new shares in the corporate action to increase capital with Pre-emptive Rights (HMTED) or PT Allo Bank Indonesia Tbk (BBHI) rights issue worth Rp4.8 trillion. The new shares from the rights issue will be traded on the IDX from January 13 to 19. PT Bukalapak.com Tbk (BUKA) will hold 11.49% stake in Allo Bank, Salim Group will hold 6.00% stake, two Singapore-based companies, Grab and Carro, both through separate affiliates, will each hold 2, 07% and 0.69%, while CT Corp will hold a 1.88% stake.

            The investment into Allo Bank by Bukalapak, Grab and Carro is the latest example of growing interest among technology companies in the ASEAN region in Indonesia’s digital banking sector. Previously, Indonesia’s largest private technology company GoTo has invested in and owns 21.4% shares of digital lender Bank Jago, while Singaporean technology conglomerate Sea Ltd has transformed Bank Kesejahteraan Ekonomi into SeaBank’s digital bank in Indonesia after the acquisition.

            “Online and offline ecosystems are now in the bank, and with the right strategy, leadership, execution, and technology, Allo Bank become a serious challenger in Indonesia’s digital banking landscape,” added the multinational financial services provider from the United States (US), Citi.

Indonesia’s Financial Services Authority (OJK) relaxed foreign ownership rules on banks last year, which is likely to spur more regional technology players to enter the banking business. Mini-banks in Indonesia need to raise funds to meet minimum capital requirements, while technology companies see opportunities to take a stake in an industry they see as the next growth sector.

January 7, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220107082351-17-305372/raksasa-merapat-allo-bank-jadi-pemain-serius-bank-digital-ri)

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Because of Indonesia, Tin Price Breaks the Highest Record!

The world tin price set a new record high after the release of export data from Indonesia. On Tuesday (11/1/2021), the world tin price was recorded at US$ 40,125/ton, this figure rose 0.52% compared to yesterday’s position of US$ 39,918/ton. Indonesia’s refined tin exports in December reached 7,966.70 tons, according to data from the Ministry of Trade. This number grew 26.10% compared to the previous month. When compared to December 2020, Indonesia’s exports rose 24.94%. In accumulation, Indonesia’s refined tin exports in 2021 will reach 74,671.65 tons. An increase of 14.11% compared to 2020 of 65,435.95 tons.

Indonesia is the second-largest producer of refined tin in the world after China. The significant increase in refined tin exports from Indonesia is a signal that the demand for tin is still high. Exports were led by shipments to Singapore, the Netherlands, and India.

Tin is used in consumer electronics such as smartphones, laptops, and digital via soldering in semiconductors. Demand also comes from the new renewable energy (EBT) sector. Tin solder is a major part of photovoltaic cells, which are the main components that make up solar panels.

Jan 11, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220111150828-17-306420/harga-timah-tembus-rekor-tertinggi-gara-gara-indonesia)

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Indonesia Causes Coal Price Drops Almost 4%

          The price of coal on the Newcastle (Australia) ICE market closed at US$ 170/ton. A fall of 3.95% compared to the closing position of trading last weekend. In the previous trading, coal prices decreased by 1.67%. In two trading days, the price of this commodity fell 5.55%. This happened when the government of Indonesia, President Joko Widodo announced a policy that shocked the world. Indonesia banned coal exports for a month to ensure sufficient domestic demand, especially for power plants.

            Indonesia is the world’s largest coal exporter. Many countries depend on coal supplies from Indonesia, such as China 127.7 million tons, India 97.5 million tons, the Philippines 27.4 million tons, Japan 26.9 million tons, Malaysia 26.1 million tons, South Korea 24.7 million tons, Vietnam 17.8 million tons, Taiwan 17 million tons, Thailand 16.8 million tons, and Bangladesh 7.2 million tons. When the government announced the cessation of exports, coal prices rose three days in a row. During those three days, the increase was up to 18.85%. The absence of supply from Indonesia will make coal stocks in the world market run out.

            However, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said that the Indonesian government is ready to reopen the faucet for coal exports. Currently, the supply of coal for domestic power plants is sufficient (Managed by PT PLN (Persero). “Everything is good, we have gradually increased the number of days from 15 days to 25 days, for reserves,” Luhut said. As a result, prices are gradually falling.

Wow! Coal Price ‘Flying’ 9%!

Previously on January 11, 2022, the price of coal had fluctuated due to the floating policy of the Indonesian government. Currently, the price of coal has increased significantly again. The increase in coal prices was more than 9%. Yesterday, the price of coal on the Newcastle (Australia) ICE market closed at US$ 189.75/ton. Soared 9.56% from the previous day’s closing position. In the last two days, coal prices rose sharply. On January 12-13, 2022, the price of coal soared to 12.88%.

It seems that news from Indonesia is again the main cause of coal price driving. The Indonesian government confirmed that coal exports were still closed, the ban had not been lifted. “We will released it gradually. Anyway, if it meets the criteria, it will be released,” said Jodi Mahardi, Spokesperson for the Coordinating Ministry for Maritime Affairs and Investments. The government also provides conditions that must be met if the company wants to export.

  • First, companies that have fulfilled sales contracts to PT PLN (Persero) and are required to supply 100% of domestic needs (Domestic Market Obligation/DMO) in 2021 will be allowed to start exporting this year.
  • Second, coal companies that already have a contract with PT PLN (Persero) but have not fulfilled their contractual obligations and the DMO for 2021, must fulfill the obligation of fines in accordance with the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021.
  • Third, for companies whose coal specifications do not meet PLN’s needs or do not have a contract with PLN in 2021, they will also be subject to a fine with the same mechanism according to the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021, based on the volume of DMO allocation given to each company.

Indonesia’s policy regarding coal has indeed greatly influenced and moved prices. Understandably, Indonesia is the number one coal exporter in the world.