Why We Need to Transform Coal to a High Value Resource?

Rohan Stanger Shows Robyn Williams New Forms and Uses for Coal (NU)

Newcastle, north of Sydney is the world’s largest coal port. More than 100 million tonnes moves through the port each year. 

But research at Newcastle University is working to making coal a high value product, rather than a low value one which is sold for 10c/Kg. Rohan Stanger’s lab thermally treats coal producing carbon fibre which is light and very strong. 

It can be used in place of steel in building products and for aeroplanes and car bodies. If the fibre can be produced at below $10/Kg, car makers will use it in place of steel, producing lighter cars, requiring less fuel and producing lower emissions. There is even potential for carbon products to be used as a battery.

Knitting a sports car with carbon fibre

Source: ABC News

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The 10 largest coal producers and exporters in Indonesia:

1. Bumi Resouces
2. Adaro Energy
3. Indo Tambangraya Megah
4. Bukit Asam
5. Baramulti Sukses Sarana
6. Harum Energy
7. Mitrabara Adiperdana 
8. Samindo Resources
9. United Tractors
10. Berau Coal

Top World Clean Coal Technologies Contractors

Tower company LCK Global Kedaton sets price of IPO at Rp 208 per share

Telecommunication tower construction services company PT LCK Global Kedaton Tbk  (LCKM.JK) announced IPO price at Rp 208 per share. With releasing of 200 million shares, the company could potentially get the IPO funds Rp 41,6 billion.

LCK Global Kedaton is a telecommunication construction services company which has affiliation with LCK Group Malaysia. Currently, the company's share ownership owned by PT LCK Investatama Prima Indonesia with 64%, PT Maju Mekar Makmur as much as 33%, and Lim Chin Kim, Kenny Lim and Lim Kah Hock respectively 1%.

In information disclosure, management of LCK Global Kedaton conveys the IPO price at Rp 208. Previously the company offers IPO stock price around Rp 138 - Rp 218.

The amount released to the public reaches 200 million shares, or 20% of the capital paid up and placed by the company. This means that companies can pocket the IPO funds Rp 41,6 billion.

"A schedule listing the stock IPO on the Indonesia Stock Exchange (IDX) will be conducted on January 16, 2018," explained the management.

Approximately 97% of the IPO fund will be used for working capital. As for the other 3% is used as the financing of research and development program (R&D), as well as training.

Until now, the LCK Global Kedaton has had a contract with PT Inti Bangun Sejahtera Tbk. (IBST), PT Tower Bersama Infrastructure Tbk. (TBIG), PT PT Lasmana Swasthi Prashidu, PT Pertama Karya Perdana, PT Kreasindo Utama Jaya Solution, and PT Triview Mandiri.

The company, also pocketed a contract of cooperation worth Rp 200 billion with PT Centratama Karya Perdana.

Director LCK Global Kedaton, Ruben Partogi reveals, the company has built as many as 200 tower along the 2017. Thus, total telecommunications towers have been built reaches 400 tower.

"Next year, the amount of the construction of the tower could go up 50%-70%, or achieve 300 new towers," said Ruben.

This year, the company's central aim of cooperation with PT MAC Sarana Djaya, PT Fastel Sarana Indonesia, PT KIN, PT Bali Tower and PT ISBS.

Until June 2017, LCK Global Kedaton reached revenues Rp 36,64 billion. As for the company's revenues targets until the end of the year reached Rp 72 billion and increased to Rp 148 billion in 2018.

Meanwhile, the company's net profit until June 2017 reached Rp 4,34 billion and targeted reach Rp 11 billion until the end of this year.

LCK Global Kedaton optimistic could reach target Rp 21 billion  of profit in the next year.

Meanwhile, equity LCK Global Kedaton thicken Rp 54,35 billion, from Rp 30,4 billion by the end of 2016 into Rp 84,75 billion in June 2017.

Emission effect guarantor is PT Mirae Asset Securities Indonesia. As for the underwriter was PT Erdhika Elit Sekuritas, PT Indosurya Bersinar Sekuritas, PT Magenta Kapital Sekuritas Indonesia, PT NH Korindo Sekuritas Indonesia, PT NISP Sekuritas, PT Onix Sekuritas, PT Panin Sekuritas Tbk., PT Phillip Sekuritas Indonesia, PT Profindo Sekuritas Indonesia, PT Shinhan Sekuritas Indonesia, and PT Yule Sekuritas Indonesia Tbk.

Prima Cakrawala Abadi sets price of IPO at Rp 150 per share

PT Prima Cakrawala Abadi (PCAR.JK) set prices share offer in the process of Initial Public Offering/IPO at  Rp 150 per share. It was stated in the announcement published by PT Kustodian Sentral Efek Indonesia (KSEI).

The price is set in the middle price range area designed earlier by the company, i.e. between Rp 145 to Rp 155 per share.

Director of KSEI, He explained, the company's releasing as much as 466 million shares to the public. The time of public offering occurred on December 22, 2017, then the distribution of shares electronically will be performed on December 28.

Meanwhile, the company will lists its shares on the Indonesia Stock Exchange (IDX) on 29 December 2017.

Companies engaged in the field of industrial fishery products (shrimp and crabs) it plans to use 70 percent of the IPO funds for working capital of the company, in which 20 percent are used to buy meat from fishermen and 80 percent are to buy raw materials, payment the company's debt, operating expenses, marketing expenses, and exhibits costs.

Thus, the remaining 30 percent of the IPO fund would used as the financing of investment, among them is to buy new equipment to enhance the efficiency of the production process and the cost of the factory renovations.

From the performance itself, the total revenue of the company until the end of August 2017 surged to 318.63 per cent to Rp 95,49 billion from the same period in 2016 to Rp 22,81 billion.

However, it is not enough to raise the net profit of the company, so the company still recorded a loss of Rp 3,55 billion. The figure was down from previously recorded to reach Rp 6,46 billion.

To date, the company has several factories located in Semarang, Indramayu, and Makassar.

After the IPO, management planned to build new facilities in Rembang, Tuban, Cirebon, Lampung, and Belitung.

	2015	2016	31 August 2017
Assets	52.764	42.637	68.012
Revenue	873.952	827.606	365.454
Equity	(11.611)	(22.642)	29.871
Liability	84.896	66.449	95.499
Net income	(17.319)	(10.382)	(3.551)

NB: In million Rupiah

Jasa Armada Indonesia to make market debut today

PT Jasa Armada Indonesia Tbk (IDX:IPCM) or IPC Marine as the largest scouting and tugboat service company in Indonesia, which recently concluded its Rp 380 initial public offering, will make debut on stock exchanges today.

PT Jasa Armada Indonesia Tbk release as many 1,215,506,500 shares. Therefore, the company is targeting funds that will be earned Rp 461,892,470,000.

PT Jasa Armada Indonesia Tbk will allocate 90% of the IPO capital to finance the fund capex (Capital Expenditures) and 10% for working capital. The company is planning to add fleet of business segments for ship to ship (STS), canal line and the private port.

PT Jasa Armada Indonesia Tbk currently operating a fleet of 75 ships. This company is the most experienced (57 years of operation since 1960), the most reliable (serves 25 thousand ships/year with zero accident according to the standard of the Government) and the most efficient (the highest profitability level in their field).

As for the prospects of the development of captive market belongs to very high, where IPC has several projects which are categorized as national strategic projects in Indonesia.

These projects include the port New Priok ( Kalibaru), Kijing, Sorong, and Cikarang-Bekasi Laut, where funds for construction are already available as much Rp 22 trillion. In the next 5 years, IPC will have a capacity of 2 times compared to the current capacity. JAI exclusively carry out scouting services and delays in the whole area of the IPC with the 20-year contract.

PP Presisi targeting double revenue to Rp 4.9 trillion in 2018

PP Presisi PT Tbk (PPRE),  the Indonesia's largest construction equipment rental company, would more aggressively in the next year. Subsidiary of PT PP Tbk (PTPP) is targeting revenues doubled in the year 2018 or increase almost 13 times more than 2016.

Benny Pidakso, Finance Director of PT PP Presisi, said the company is targeted income of Rp 4.9 trillion in 2018. Until the end of the year 2017, PPRE optimistic can earn revenue of Rp 2.3 trillion.

That means, there was a growth in revenues of 113.04%. "We are also targeting profit amounting to Rp 434-500 billion in 2018," said Benny while visiting the Office of CASH, Wednesday (20/12).

The main income comes from Civil Work. Then, the rest comes from Heavy Equipment Rental business. To reach that target, the PPRE keep chasing several new contracts.

The target, next year PPRE could get a contract worth Rp 16.5 trillion. Around Rp 9 trillion is the carry over contracts from the year 2017.

Business Expansion

PPRE will also be expanding the business to several new sectors such as the mining sector. In this sector, the company has obtained a contract worth Rp350 billion per year. The project is located in an area of Sumatra, with a period of five years.

Benny says, it has also signed a new contract with one of the mining companies with same value contract. Beside that, PPRE will also develop new business in the sectors of electrical mechanical, erector, transport and logistics.

Next year, the PPRE preparing the expansion capital of Rp 1.6 trillion. Capital Expenditures (capex) is slightly smaller than the capital expenditure Rp 1.8 trillion in the year 2017.

80% of the capex will be used for purchase of heavy equipment. Then, the remaining capital will be used for land acquisition and the company acquisitions.

To fund the expansion, PPRE will use funds from the Initial Public Offering (IPO) of Rp 700 billion. While the rest will come from banking loans.

Hans Kwee, Director of Investa Saran Mandiri, said, the Central Government is currently encouraging infrastructure development and, hence, companies engaged in the field of construction equipment and equipment supporting  would have bright prospects.

But in the eyes of investors, the PPRE performance will be overshadowed the parent company. "As a subsidiary of STATE-OWNED ENTERPRISES, investors will always associate PPRE with parent company," he said.

Hans said, a new contract PT PP indeed pretty good. However, the market is still worrying about payment PT PP projects. But usually, cash flow PT PP it will improve toward the end of the year

Until the quarter III-2017, PPRE registered a revenue of Rp 930 billion. This revenue grow 271% year on year (yoy) compared to the same period last year that only collect revenue to Rp 251 billion.

The largest revenue contribution comes from civil work and foundation work amounting to 61% of total income, heavy equipment rental business contributed about 16%, ready mix of 14%, and form work amounting to 9%.

PPRE profit to the quarter III-2017 also climbed significantly of 234% yoy. Per September 2016, PPRE profit only Rp 27 billion. But, in the quarter III this year, profit reached Rp 89 billion. Meanwhile, the company's EBITDA reached Rp 322 billion, up 246% yoy.

Positive performance PPRE also encouraged the acquisition of a 51% stake in PT Lancarjaya Mandiri Abadi (LMA). Currently, PPRE and LMA managed a number of national strategic projects.

See also: United Rentals (USA)

LCK Global Kedaton IPO opens with a price band of Rp 138 - Rp 218 per share

Tower engineering firm, PT Global LCK Kedaton Tbk planned initial public offering (IPO) by releasing as many 20 percent stake or around 200 million shares at a price of Rp 138-Rp 218 per share.

Director Global LCK Kedaton, Lim Kah Hock explained, from the execution of the IPO, the company will obtain fresh funds around between Rp 27,6 - Rp 43,6 billion.

In this IPO, the company pointed PT Mirae Asset Sekuritas Indonesia as guarantor of implementing emissions effect.

"The obtained fund will be used for working capital as much as 97 percent, while the rest is to finance research and training," said Associated Director of PT Mirae Asset Sekuritas Indonesia, Mukti Wibowo Kamihadi.

Director of LCK Global Kedaton Tbk Ruben Partogi says, until the end of June 2017 the company's record rise in  assets amounted to 199 per cent or Rp 94,24 billion compared to June 2016 that is only Rp 31,57 billion.

"In 2014, the assets of LCK Global Kedaton worth Rp 394,12 million," he said.

Ruben mention, per June 2017 the liabilities value of the company reached Rp 9,49 billion, while equity amounted to Rp 84,75 billion. "Per June 2017, our revenues reached Rp 36,64 billion or increased 381 percent compared to the end of 2016. Net profit in June 2017 amounted to Rp 4,34 billion, "stated Ruben.

The company hope to have effective statement from the Financial Services Authority (OJK) on 29 December 2017, until the early bidding on 15-27 December 2017. The time of supply is estimated to be 3-9 January 2018, so listing in Indonesia Stock Exchange on 16 January 2018.

As information, the majority of the company's stock is owned by PT LCK Investama Prima Indonesia 64 percent, 33 percent is owned by PT Maju Mekar Makmur.  PT LCK Indo Holding (affiliated LCK Group from Malaysia) hold more than 50% of LCK Investama Prima Indonesia stocks.

Jasa Armada Indonesia (JAI) sets price of IPO at Rp 380 per share

PT Jasa Armada Indonesia Tbk (IPCM) do the initial public offering, with a price quote Rp 380 per share and will make a debut on stock exchanges tomorrow, 21 Desember.

The IPO pricing of Jasa Armada Indonesia approaching limit left from the price set. Earlier, subsidiary of PT Pelabuhan Indonesia II (Persero) sets price range offer around Rp 325 - Rp 530 per share.

In the official website of PT Kustodian Sentral Efek Indonesia quoted on Saturday (16/12/2017), Jasa Armada Indonesia (JAI) is ready to release 1.21 billion shares. Through the action of the intial public offering (IPO) then potentially fresh funds pocketed JAI worth Rp 461,7 billion.

Other than a price quote that is approaching the lower limit, the number of shares offered by Jasa Armada Indonesia also experienced a decline, from the initial plan as much as 1.74 billion shares or as much as 30% of paid in full for paid-up capital.

The period of the public offer of the Jasa Armada Indonesia shares performed on December 18-19 2017. The guarantor executing emission effects of JAI is PT Danareksa Securities and PT Mandiri Securities.

When encountered recently, President Director of PT Pelabuhan Indonesia II Elvyn G Masassya claim, that the IPO of the company's subsidiary namely Jasa Armada Indonesia experience excess demand nearly 2 times. He was not denied that excess demand due to the price offered is not the right approach.

He claimed, the price offered to the investor enters in the middle price. Elvyn spoke, most requests come from institutional investors rather than retail.

	2015	2016	30 June 2017
Assets	501.599	598.370	683.634
Revenue	873.952	827.606	365.454
Equity	286.279	336.734	387.629
Liability	215.320	261.635	296.004
Net income	208.609	117.064	50.894

NB: In million Rupiah

JMA Syariah sets price of IPO at Rp 150 per share

PT Asuransi Jiwa Syariah Jasa Mitra Abadi Tbk (JMA Syariah) has set the exercise price of their initial public offering (IPO). The price is set at the middle range of the bid during the bookbuilding. The information was conveyed by the PT Kustodian Sentral Efek Indonesia (KSEI) on their website in Jakarta.

Mentioned, the JMA Shariah sets the exercise price of the initial public offering (IPO) at a price of Rp140 per share. This price was in the middle range of the IPO offer price range between Rp130 till Rp 150 per share. Through the IPO, JMA Syariah will release 400 million shares or equivalent to 40% of the total capital and paid in full for paid-up capital. With the fresh funds, which will be earn by JMA Sharia from IPO amounting to Rp 56 billion.

The effective date has been retrieved Sharia JMA on December 11, 2017 from the Financial Services Authority (OJK). Period of the public offer is conducted on 13 December 2017, while the allotment date on 14 December 2017. On December 15, 2017 became the date of refund of booking at the same time the distribution of shares electronically. JMA Sharia target stocks could be listed on the stock exchange on 18 December 2017.

Subsidiary PT Koperasi Simpan Pinjam Jasa (Kospin Jasa)PT Jasa Utama Capital Sekuritas as guarantor of effect emission (underwriter). Seven other securities firm was also appointed as the underwriter of securities, such as PT Erdikha Elit Sekuritas, PT KGI Sekuritas Indonesia, PT NH Korindo Sekuritas Indonesia, PT Panin Sekuritas Tbk, PT Phillip Sekuritas Indonesia, and PT Profindo Sekuritas Indonesia.

	2015	2016
Assets	66.597	68.251
Revenue	6.062	6.499
Equity	63.168	63.227
Liability	2.845	4.202
Net income	2.490	58

NB: In million Rupiah

Prima Cakrawala Abadi expects IPO price range of Rp 145 to Rp 155 a share

The company engaged in the the processing and distribution of small crab attaching, the PT Prima Cakrawala Abadi Tbk (PCA Foods) will conduct the initial public offering of shares (initial public offering/IPO) in the price range Rp145-Rp155 per share.

President Director of PCA Foods Raditya Vardhana in Jakarta, Thursday (7/12/2017) says that the company will take off as much as 466.6 million new shares, or about 40 percent of the capital that are placed and paid in full after the IPO.

"With the price range of the IPO was expected, we can grab the IPO funds of around Rp67,66 billion to Rp72,33 billion," he said.

He sets forth that about 30 percent of the IPO proceeds fund will be used for capital expenditures. And the rest will be used for working capital. The plan, the company will perform a repair factory, purchasing new equipment, construction of new facilities, as well as the purchase of raw materials.

In running his business, he conveys that it produces and provides canned small crab for companies in the United States (USA). The company's exports to the US since the beginning of the year until August 2017 of 292,291 kilograms (kg). While the previous year reaching 271,620 kg. In addition to the U.S. the company also exports to the United Kingdom, Bahrain, Singapore and Malaysia.

"Since the company exports in 2014, the company already has regular customers. The majority of customers are located in several states in the U.S., namely Florida, Boston, New york, and Baltimore, "he explained.

In the corporate actions that, PCA Foods appoints Artha Securities Indonesia and Lotus Andalan Securities as guarantors of implementing emissions. The company expects the get statement is effective from the financial services authority (OJK) on December 19, 2017, and is recorded in the Indonesia stock exchange on December 28th, 2017. 

Campina sets price of IPO at Rp 330 per share

PT Campina Ice Cream Industry (CAMP) official pegged the price of the initial public offering (Initial Public Offering/IPO) at Rp 330 per share.

Based on the description in the Indonesia Central Securities Depository (KSEI), Campina sets share price at Rp330 per share with nominal price at Rp 100. Shares to be issued on 18 December 2017, and recorded in the Indonesia Stock Exchange (IDX) on December 19, 2017.

Previously, this ice cream manufacturer provide a share price range in Rp 310 - Rp 400 per share and releasing 885 million shares or 15,04% of capital placed and paid in the company.

With the value at Rp330 per share, then a company known for its popular ice cream products Hula Hula and Concerto potentially rake in funds Rp 292 billion.

Through the prospectus summary, the company would use the Rp 260 billion for repayment of company debt. This  debt maturing in 2021, but the company want to pay it off, so the Campina could shrink the interest expense amounting to Rp 40 billion.

Meanwhile the rest of the IPO fund, used to add the company's working capital to develop new factories in Surabaya.

Reliance Securities analyst, Aji Setiawan in his research explains, the net profit of Campina per June 2017 recorded dropped to Rp 9,98 billion from Rp 23,89 billion in the same period a year earlier.

"The decline caused by the increase in principal sales expense, general and administation expense that increases respectively of 10.9 percent, 3.1 percent and 9.1 percent in the same period in the previous year," he said.

He explains, Campina constantly looking for innovation by working with animation studio to improve ice cream products advertising. Currently the company is working with Nickelodeon and Disney to be licensees in a variety of ice cream products.

Aji added, Campina was one of the big players in the business of ice cream in South Asia and Southeast Asia. The company also has a strong modern distribution network in Indonesia.

Not only that, he stated the Campina has big production capabilities and new products development. It supported the growth of the middle class, as well as an increase in the population of young age and lifestyle of urban that consume ice cream in Indonesia.

However, on the other hand the Aji also bear the investment risk against Campina.

"The reliance on primary raw materials namely, Skim Milk, Sugar, Chocolate, Fat Chocolate became a very important thing to lead the company's business activities. This, it will have an impact on profit margins obtained by the company, "he said.

While, according to Aji, calculation of the valuation of the share price in 12 months after IPO are estimated at the level of Rp 510 per share. It is calculated using the Price to Earning Ratio (PER) or the ratio of the stock price is compared to the income of the industry in numbers 17.37 times.

"So we recommend neutral upside potential to [increase] stock company limited of 27.35 percent of the highest bidding," he explained.

IPO News: WIKA Gedung offer 40 percent stake to raise up to US$ 61 milion

PT Wijaya Karya Bangunan Gedung (WIKA Gedung)(WEGE) subsidiary of PT Wijaya Karya (Persero) Tbk (WIKA), planning on doing an IPO (initial public offering) in October-November 2017. WIKA Gedung is ready to offer as many 40% stake to the public.

PT Wijaya Karya Bangunan Gedung Tbk (WIKA Gedung) was founded on October 24, 2008. The headquarter is located in the WIKA building, 8-10 floor, JL. A di Panjaitan Kav 9, Jakarta, Indonesia, 13340.

The scope of business activities of WIKA Gedung is engaged in the field of industrial construction and engineering services of chartering terms progress patterns as well as turnkey/Build Operate Transfer (BOT), the management and leasing of the building/area integrated commerce, trade and maintenance of the equipment as well as materials of construction and engineering in particular, developers realty, as property investors and industry supporters of the construction of the building.

WIKA Buildings position themselves as 'Total Solution Contractor' and always provide value-added solutions, best service in safety & quality. Currently WIKA Gedung focus on enterprise development through business transformation property towards investment and land concessions.

WIKA will conduct business development through backward integration approach to strengthen the supply chain or core business company (building construction), with the direction of business development include geotechnical solutions and prefab building. This effort made to increase revenues and profits, achieving economies of scale, as well as strengthen the competitiveness of the company long term.

WIKA Gedung pointed four guarantors of implementing emissions effect (joint lead underwriter/JLU), namely PT Mandiri securities, PT Bahana securities, PT CIMB Securities Indonesia, and PT Buana Capital Securities.

Based on the material of the IPO plan, schedule initial supply Wika (bookbuilding) on 24 October-7 November 2017. As for the initial public offering on November 22 - 24, and the listing at the Indonesia Stock Exchange (IDX) on November 30, 2017.

WIKA Gedung has complete the bookbuilding range set between Rp 290-456 per share.

The company will allocate 70% of the IPO proceeds to fund investment in the field of property and infrastructure. The remaining 30% for working capital of construction business.

As for the number of new shares issued as much as 2.87 billion units and the funds that would raise amounting to Rp 832.8 billion.

Currently, WIKA Gedung has a number of construction portfolio in the segment of apartments, hotels, malls, offices, airports and hospitals, educational buildings and sports facilities.

Meanwhile, in 2018, WIKA Gedung will increase production capacity to 25 units/projects per day. The capacity will be maintained in 2019 and 2020.

Financial Report

	2015	2016	31 June 2017
Assets	1.231.900	1.682.858	2.194.925
Revenue	1.431.936	1.929.458	1.305.456
Equity	257.144	756.248	728.628
Liability	1.063.121	1.383.690	1.863.263
Net income	108.060	143.226	105.810

NB: In million Rupiah

PP Precision optimistic can get new contract worth Rp 8 trillion in 2018

PP Precision PT Tbk (PPRE), the biggest heavy equipment rental company in Indonesia,  is targeting a new contract worth Rp 7 trillion to Rp 8 trillion (USD 518-590 million) in 2018. As for the year 2017, a subsidiary of PT PP Tbk (PTPP) is targeting the contract amounting to Rp 5.8 trillion.

Benny Pidakso, Finance Director and Company Secretary PPRE stated, these new contracts include project multi years. Including the Trans-Sumatran toll, Pandaan-Malang toll road, and Solo-Kertosono toll road, built in 2017-2019.

In addition, there is the construction of the taxy way and runaway Soekarno-Hatta Airport's Terminal 3, and the construction Kulon Progo airport. "Until October 2017, PP Precision has signed a new contract worth Rp 4.2 trillion," he said in the Indonesia Stock Exchange (BEI), Friday (24/11).

For the year 2018, PPRE have budgeted capital expenditures or capital expenditure (capex) amounting to Rp 1.4 trillion. This capex lower than capex 2017 that reach Rp 1.8 trillion.

"Next year we are targeting is Rp 1.4 trillion. Due to the acquisition process for next year will not be as big as the year 2017. But we will focus to organic growth, "he said.

Currently, the company has the form work covering 27,000 sqm, eight factory of ready mix, and 1,500 units of heavy equipment from various famous brands.

Financial Report

	2015	2016	31 July 2017
Assets	378.545	1.066.389	3.355.267
Revenue	223.113	371.236	441.050
Equity	94.656	211.946	1.253.508
Liability	283.889	854.443	2.101.758
Net income	71.306	95.222	128.231

NB: In million Rupiah