Bakrie & Brothers (BNBR, Rp50) , Bumi Resources (BUMI, Rp1,490)

Panax to develop geothermal projects with Bakrie Power Panax Geothermal Ltd., an Australian project developer, agreed with Bakrie Power to establish geothermal plants in Indonesia. The joint venture accord replaces a memorandum of understanding between the two companies signed in June 2010, Panax said in a statement on Aug. 16. Bakrie Power is
a subsidiary of Bakrie & Brothers. The agreement covers geothermal project areas that have already been awarded to Bakrie and areas for which Bakrie has already bid in Indonesia. It also includes geothermal areas that the two
companies will jointly identify as suitable for geothermal development, Panax said. The companies will initially develop the 30MW Sokoria Project located on Flores Island. Panax will have a 45% stake. Bakrie won a tender in
September 2009 to develop the Sokoria geothermal field at an electricity tariff of US$12.5cents per kWh. Panax and Bakrie will also supply 25MW of baseload geothermal power from existing geothermal resources to Dairi
Prima Minerals’ planned underground zinc and lead mine in northern Sumatra. Panax will hold a 51% stake in this project. Dairi Prima Minerals, a subsidiary of Bumi Resources, will buy electricity at US$15cents per kWh for the first 8 years, starting from late 2012, and US$12.5cents per kWh subsequently. – Bloomberg

Bank Negara Indonesia (BBNI, Rp3,000)

Green-shoe shares priced at Rp2,900 a share
The government finally set the price for Bank Negara Indonesia's green-shoe shares at Rp2,900 a share. About 70% of the green-shoe shares will be released to domestic investors and the remaining 30% is offered to foreign investors. Four local pension funds have been the largest buyers, they are, pension funds of Bank Indonesia, Jamsostek, Perkebunan, as well as Pertamina. Meanwhile, the foreign investors that become the largest buyers of the lender's greenshoe stocks are Invesco Hong Kong Ltd and Fidelity Investment Ltd. The Minister of State Enterprises Mustafa Abubakar said the
price actually can reach Rp3,000 a share. But if the government offers higher price, then the foreign investors will be the most potential buyers. The government wants to prioritize the domestic investors for this divestment.
With the price set at Rp2,900 per share, the stocks will have 3.93x oversubscribed. Meanwhile, if the price is set at Rp3,000, the stocks will be 1.36x oversubscribed. – Bisnis Indonesia

Indocement Tunggal Prakarsa (INTP, Rp16,150)

Cirebon-based new cement mill completed
Indonesia’s second largest cement producer, Indocement Tunggal Prakarsa, said it had its new cement mill with capacity of 1.5mn tons in Cirebon, West Java, completed. It may operate the mill on August or at the latest after Aidil Fitri holidays. The company may also plan to start building a new cement plant on 2H10, local newspaper reported. Indocement may allocate US$75mn for capital expenditure in 2010, the report said citing the company’s Corporate Secretary Dani Handajani. – Bisnis Indonesia, Investor Daily

Aneka Tambang (ANTM, Rp2,100)

Antam may invest US$600mn for nickel projects State-owned multi mineral producer Aneka Tambang or Antam may prepare
US$600mn for initial stage of its nickel project in Halmahera, North Maluku, while the project may cost US$1.2bn in total, local newspaper reported without citing any source. Antam is yet to decide potential partner for such project, an unnamed source told local newspaper. – Investor Daily

Bumi Resources (BUMI, Rp1,660)

Mulling over 7% stake in Newmont Nusa Tenggara Bumi Resources via its joint venture Multi Daerah Bersaing may add 7%
stake in gold and copper mine Newmont Nusa Tenggara (NNT) as the company is still following the process of the share sales. NNT foreign shareholders had offered 7% divestment stake at US$444.08mn to the Government of Indonesia, higher than last year’s 7% divestment stake which worth US$246.8mn. – Investor Daily

Bank Negara Indonesia (BBNI, Rp3,000)

Green-shoe shares to be sold at Rp2,900 each The government will start offering 473.89mn green-shoe shares of Bank
Negara Indonesia this week helped by Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas, and MacQuairie. The shares will be offered at a minimum price of Rp2,900 each. – Bisnis Indonesia

Bank Mandiri (BMRI, Rp5,900)

To finalize the acquisition process of an insurance company Bank Mandiri will finalize the acquisition process of another insurance company this year. The bank has not disclosed the identity of the target. Currently, Bank Mandiri has 51% stake of a life insurance company AXA Mandiri Financial Services, a joint venture with AXA Financial. – Bisnis
Indonesia