exciting times...

http://www.bakrie-brothers.com/uploads/dlfile/file_1dd346c266202c874d3bd37068fc947f.pdf

latest bakrie presentation above has a mention of sok and nge.

below is older articles in december - i remain extremely bullish long term!

Bakrie and Brothers Finds Strategic Partners for Expansion
BY ABDUL WAHID FAUZIE
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JAKARTA (IFT) - PT Bakrie and Brothers Tbk (BNBR) plans to seek strategic partners for several infrastructure projects next year. According to company directors, strategic partnerships are done to speed up the development process of these projects.

Bobby Gafur S Umar, President & Chief Executive Officer of Bakrie and Brothers, said the company is looking for strategic partners for the development of geothermal power projects.

In 2012, the company will start building a power plant in East Java and East Nusa Tenggara. The investment value for these projects for the next three years reaches US$ 2.7 billion. For these projects, Bakrie and Brothers already has partners from Australia, Panax Geothermal and Samsung C&T Corporation.

According to Bobby, Bakrie and Brothers is also exploring strategic partnerships for the development of PT Bakrie Tosanjaya, a company engaged in the commercial vehicle component industry. This year, Bakrie Tosanjaya contributed Rp 400 billion to Rp 500 billion of revenue to the parent company.

Bakrie and Brothers also explores a strategic partner for the other subsidiary, PT Bakrie Pipe Industries and PT South East Asia Pipe Industries. Investors which are being explored come from South America and South Korea. Assessment process is entering the finalization stage and is expected to be completed in the first half of 2012.

The company plans to sell shares in both subsidiaries, respectively between 40-60 percent. Value of asset sales, particularly of steel pipe, is estimated to bring US$ 250 million fund for Bakrie and Brothers.

The company also plans to reduce the amount of debt to Rp 1.6 trillion - Rp 2 trillion, from this year’s estimated figure of Rp 5.5 trillion. The company will reduce debt by seeking funding from banks, and both old and new creditors.

Investment Realization

According to Bobby, this year, the company's expansions of infrastructure projects do not run smoothly. The company has set aside up to US$ 200 million for investments in infrastructure projects. However, as of now, the realization of those investments is still minimal. For the toll road construction project of Cimanggis-Cibitung, the company only invested Rp 100 billion.

Another company which continues to enhance the performance of its subsidiaries are PT Sinar Mas Multiartha Tbk (SMMA), the holding company of the Sinarmas Group, engaged in the financial sector.

Kurniawan Udjaja, Director of Sinar Mas Multiartha, said the company continues to improve the performance of its subsidiary, among others, by increasing the capitals. Funds for additional capital come from the issuance of shares without Preemptive Rights (ER) in June 2011, amounting to Rp 1.6 trillion.

In early December 2011, the company has injected funds amounting to Rp 100 billion to its subsidiary, PT Sinar Mas Multifinance. The capital increase did not exceed 20 percent of the company’s equity. The capital increase is the second addition, after the company injected Rp 120 billion capital on July 1, 2011. The addition of this capital increased Sinar Mas Multiartha’s shareholding to 99.99 percent.

In 2011, Sinar Mas Multiartha targets a revenue growth of 20 percent to Rp 16.8 trillion, compared to the same period in 2010 with Rp 14 trillion. The company is also targeting a net profit increase of 20 percent to Rp 1.53 trillion, from 2010’s achievement of Rp 1.27 trillion. (*)

Bakrie and Brothers Boosts International Assets in Petroleum
BY ABDUL WAHID FAUZIE
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JAKARTA (IFT) - PT Bakrie and Brothers Tbk (BNBR), the Bakrie Group’s investment company, plans to develop its subsidiary’s business, PT Bakrie Petroleum International Pte, Ltd, in the oil trading field before the subsidiary sells its shares in the capital market.

Eddy Soeparno, Finance Director of Bakrie and Brothers, said that Bakrie Petroleum will enter the logistics business, which involves shipping as well as oil and gas tank construction in Kalimantan. This will increase its assets. The investment amounts to US$ 100 million.

It will partner with companies from Asia and Europe. Bakrie and Brothers will be the majority shareholder in the project with 70-80 percent shares. The logistics development will be finalized in the first semester of 2012.

The company needs technology to build oil and gas ships and tanks. It also does not have the expertise to manage and operate a logistics business.

Bakrie Petroleum contributes 60 percent to Bakrie and Brothers’ total revenue. However in terms of net income, its contribution is low. Its annual internal rate of return is only 23 percent.

When the logistics development is finalized, Bakrie Petroleum’s assets will grow. After its business develops, Bakrie and Brothers will offer the shares of Bakrie Petroleum to strategic partners or hold an initial public offering (IPO). However, Eddy did not mention when the IPO will be conducted.

Besides developing Bakrie Petroleum’s business, the company is also evaluating strategic partners to form Bakrie Infrastructure Fund which will fund the Bakrie Group’s infrastructure business. Two US and Asian investors are possble partners for the new company. The investors are in the investment business.

The plan to establish the Bakrie Infrastructure Fund was postponed from the its original schedule of year-end 2011 to the first quarter of 2012.

In the early phase, the company targets to obtain US$ 100 million for the capital of Bakrie Infrastructure Fund. By the end of 2012, Bakrie and Brothers expects investment amounting to US$ 300 -US$ 500 million.

In 2012, the company will invest US$ 3.5 billion. Around 2.7 billion will be invested in a power plant in East Java and East Nusa Tenggara. For this project, the company partners with Panax Geothermal and Samsung C&T Corporation. Bakrie and Brothers will also invest Rp 4.5 trillion for the Cimanggis-Cibitung toll road construction.

Lower Debts

Next year, the company plans to lower its debt by Rp 1.6 trillion to Rp 2 trillion from this year’s estimated debt of Rp 5.5 trillion. It will seek bank loans from existing and new creditors.

It will also refinance its short-term debts with the long-term loans by issuing a bond of Rp 1 trillion. Its repurchase agreement (repo) stocks is one of the debts which the company prefers to repay. "Our repo debt reaches Rp 320 billion in several securities," Eddy said.

Kurniawan Udjaja, Director of PT Sinar Mas Multiartha Tbk (SMMA), Sinarmas Group’s parent company in the financial sector, said that the company plans to boost its subsidiaries’ performance by injecting capital. It will use the proceeds from its IPO excluding preemptive rights of Rp 1.6 trillion.

Early December 2011, the company injected Rp 100 billion to PT Sinar Mas Multifinance, which is no more than 20 percent of its equity. On July 1, 2011, it also injected Rp 120 billion to Sinar Mas Multifinance which increased Sinar Mas Multiartha's stocks to 99.99 percent. (*)