Japan asks for more oil and LNG. Japan has called on Indonesia to supply it with more liquefied natural gas and crude oil after a devastating earthquake followed by tsunami crippled one of it nuclear power plants. Indonesia is the world’s third largest LNG exporter. The supply of LNG would come from Bontang’s excess capacity.
Reminder: CPIN and Kalbe Farma to be included in FTSE March 2011 Indices. CPIN and Kalbe Farma (KLBF IJ) stocks are included in FTSE indexes. All constituent changes will be applied after the close of business on Friday, 18 March 2011 and will be effective on Monday, 21 March 2011.
Gudang Garam (GGRM IJ) launching aviation business. GGRM has received an aviation business license from the Transportation Ministry and plans to open its own airline. Surya Air will be a chartered airline that is expected to largely serve GGRM's executives. GGRM had invested Rp75bn in Surya Air, controlling 99.99%. Comment: We understand the license is for commercial charter and not passenger charter. This is for three helicopters. If its used for corporate expenses and put it into transportation/business travel expenses, it will become tax deductible and that is the reason we believe its put under GGRM.
Declining rice prices in the capital. The fresh rice supplies from the latest harvest have started flowing to the wet markets in Jakarta, pushing down rice prices. In Cipinang wet market, prices have come down by 2.4% to Rp7,201/kg. Rice supplies have increased by 50% to 3,000 tons per day. Comment: Normally, some areas in Java, the key rice growing island will start to enter the main harvest season in late February, so it is not surprising that supplies suddenly increase by 50%. The country produced 66.41 tons of unhusked rice in 2010 or up by 3.13% YoY. Production for 2011 is expected to go up by 1.3% to 67.31m tons of unhusked rice.
source: CLSA indonesia
source: CLSA indonesia