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US$2.1 Billion Surplus in Balance of Payments The Jakarta Post – May 10, 2014

Jakarta – Indonesia’s balance of payments (BOP) posted a surplus of US$2.1 billion in the January-March period, according to the latest Bank Indonesia (BI) data. The surplus was lower than October-December 2013 period that was US$4.4 billion.

BI Maintains 7.5% Interest Rate This Month The Jakarta Post – May 8, 2014

Jakarta – Bank Indonesia (BI) has decided to maintain the benchmark interest rate at 7.5 percent, similar to April's level. BI has set the rate at this level since November 2013. The bank also maintained its lending and deposit facilities at 7.5 percent and 5.75 percent, respectively.

RI Forex Rises to US$105.6 Billion in April: BI The Jakarta Post – May 7, 2014

Jakarta – Bank Indonesia (BI) reported Indonesia's foreign exchange reserves at the end of April stood at US$105.6 billion, increasing from US$102.6 billion in March. The increase was supported by income from oil and gas exports. Indonesia's foreign exchange reserves stood at US$102.6 billion in the end of March 2014, slightly decreasing from US$102.7 billion recorded in the previous month.

Economic Growth 5.21 Percent Antaranews – May 5, 2014

Jakarta – Statistic Central Bureau (BPS) recorded Indonesia’s Economic growth for the Q1 at 5.21% year-on-year. The economic growth is supported by almost all sectors; particularly agriculture, livestock, forestry, and fishery increased by 22.70 percent.

April Inflation at 7.25%, March Trade at Surplus The Jakarta Globe – May 2, 2014

Jakarta – Consumer price index rose 7.25 percent last month from a year earlier, the Central Statistics Agency (BPS) reported. Compared with the CPI’s 7.32 percent increase in March, Indonesia exported US$15.21 billion and imported US$14.54 billion on March.

Economy

News flash Bi-Weekly Property-related News in Brief Issue #88, Weeks 1 & 2 | May 2014

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Tanjung Priok Port Toll Road Project Continues Tempo – May 12, 2014

Jakarta – Jakarta Provincial Government finally chooses to use consignment to acquire lands to build

Tanjung Priok Port toll road access, North Jakarta. Thus, the project which had been neglected can now be continued. It is targeted that the construction of the 114.5-kilometer long toll road to finish in 2015.

Tourists to Kuala Namu up 13.54 Percent The Jakarta Post – May 12, 2014

Jakarta – The number of foreign tourists passing through Kuala Namu Airport in Deli Serdang, North Sumatra, rose by 13.54 percent in the first quarter of 2014 year-on-year. Number of foreign tourists passing through the airport reached 55,302 in the first quarter of 2014, compared to the 48,756 recorded during the first quarter of 2013.

Elections, Low Demand Slow Cement Sales in Indonesia The Jakarta Globe – May 11, 2014

Jakarta – Cement sales in Indonesia stalled in April due to the legislative elections and slow infrastructure development in the first four months of the year. Cement sales declined 0.4 percent year-on-year in April to 4.52 million tons, according to data from the Indonesia Cement Association (ASI). Demand for building material was low throughout the legislative campaigns, which is why cement sales were down last month.

New Kebon Jeruk-Penjaringan Toll Road Tariffs Set for Monday The Jakarta Post – May 10, 2014

Jakarta – The government is to start imposing higher tariffs in relation to the Kebon Jeruk-Penjaringan toll

road, which is part of the Jakarta Outer Ring Road (JORR) W1, from next Monday for all types of vehicles. With the increased tariffs, toll road operator PT Jakarta Lingkar Barat Satu has targeted to book daily revenues of up to Rp80 million.

Jakarta Eyes Private Investors to Finance MRT Project Tempo –May 6, 2014

Jakarta – The city administration is considering a public-private partnership (PPP) to finance the second line of the mass rapid transit (MRT) connecting the capital's east and west. Japan International Cooperation

Agency (JICA) provides foreign loans to finance the construction of the first MRT line, connecting Lebak Bulus in South Jakarta and the Hotel Indonesia traffic circle in Central Jakarta.

General

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Plaza Indonesia Sets Integrated Property Project in Cikarang by 2015 Indonesia Finance Today – May 13, 2014

Jakarta – Plaza Indonesia Realty plans to realize the first phase construction of mixed-use property project in 2015. The initial phase construction is predicted to require Rp2 trillion (US$173.4 million) worth of investment.

Operator of 7-Eleven Chain Sees Slight Rise in Profit The Jakarta Globe – May 12, 2014

Jakarta – Modern International, the operator of 7-Eleven convenience stores throughout Indonesia, showed a small increase in profit for the first quarter of 2014. Its profit grew by Rp18 billion (US$1.6 million) in the

January-March period, a 7-percent rise on the same period a year earlier. Sales grew 16% to Rp340 billion in the period.

Malaysia’s Landmarks to Invest US$3.5 Billion in ‘Treasure Bay’ Resort The Jakarta Globe – May 11, 2014

Jakarta – Landmarks plans to develop a water resort city in Bintan Island-Indonesia and pump up to US$3.5 billion of investment over the next 10 to 12 years. Landmark, through Singapore-based unit Bintan Treasure Bay, plans to develop 338 hectares of land in Bintan into an integrated facility.

Surya Internusa Revenue Drops The Jakarta Globe – May 11, 2014

Jakarta – Surya Semesta Internusa booked a 93.8 percent decline in net income in the first quarter of 2014 after sales of industrial estate land declined due to legal conflicts. Surya Internusa’s net income dwindled to just Rp12.4 billion (US$1.078 million) in the January-March period, from Rp200.2 billion last year.

Ciputra Nara Develops Apartment and Office Units Bisnis Indonesia – May 9, 2014

Balikpapan – JO Ciputra Nara plans to launch apartment and office units in the Citra City Commercial Area Balikpapan in Q3-2014. The project will comprise 20 office units in 6 floors and the apartment units are in 11

towers with maximal elevation of 12 floors.

Podomoro Land Aiming to Earn Rp750 Billion in Debt Sale This Month The Jakata Globe – May 8, 2014 Jakarta – Agung Podomoro Land plans to raise Rp750 billion (US$64 million) from selling bonds later this month. Proceeds from the debt sale will be used to finance its various projects across Indonesia. Its relinquishment of its notes will be part of a larger plan to come up with Rp2.5 trillion in two years.

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Ciputra Projects Development of Citra Int'l City Superblock to Reach Rp5 Trillion Indonesia Finance Today – May 7, 2014

Jakarta – PT Ciputra Development prepares Rp5 trillion for the Citra International City superblock project in Puri Indah. The company plans to build 4 upper-middle class apartment towers on the 7.5-ha land, for a total of 2,000 apartment units. The first apartment will be launched around 2Q14 at Rp1 - 2 billion per unit.

Agung Podomoro Acquires Harco Glodok Okezone – May 6, 2014

Jakarta – PT Agung Podomoro Land acquired 69% of PT Wahana Sejati – Harco Glodok. Harco Glodok will be refurbished to become a new trade center with 2,176 stalls and 17,000 sq-m of gross area. It plans to

build budget hotels in this area.

Resteel to Build US$500 Million in Batam The Jakarta Post – May 6, 2014

Jakarta – PT Resteel Industry Indonesia, a joint venture between local steelmaker PT Trinusa Group and China’s major private steelmaker Shanxi Haixin Iron and Steel Group Co. Ltd., plans to build a US$500 million steel mill in Batam, Riau Islands, in this year.

Ratu Prabu to Spend Rp1.9 Trillion on Residential Tower The Jakarta Post – May 6, 2014

Jakarta – Ratu Prabu Energi is setting aside Rp2.15 trillion (US$186 million) this year to boost revenue from

its property unit. It will use Rp1.9 trillion of the funds to complete the construction of Ratu Prabu 3 Residence, a 9,000 sq-m residential project in South Jakarta, comprising 61 strata title apartment units and 108 hotel rooms and 47 serviced apartment units.

BSD Posts 60% Lower Q1 Profit The Jakarta Globe – May 4, 2014

Jakarta – Bumi Serpong Damai booked a 60% decline in net income in the first quarter of this year from a year earlier, due to the effect of a one-time gain from land sales to affiliate companies last year. Net income BSD declined to Rp488.6 billion (US$42.3 million) in the first three months of 2014 from Rp1.24 trillion in

the same period last year.

New Jakarta Office Tower on the Cards The Jakarta Globe – May 4, 2014

Jakarta – Lippo Karawaci will start marketing Lippo Tower Holland Village that have 39 stories and offer 26,000 sq-m of office space to customers. The available spaces for sale start from 120 to 1,442 sq-m. Lippo Tower Holland Village will be integrated with the Holland Village mixed-use facilities.

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MNC Land to Focus on Lifestyle Buildings The Jakarta Post – May 3, 2014

Jakarta – PT MNC Land will focus more on developing lifestyle and entertainment buildings this year on the back of Indonesia’s growing young middle class. MNC Land will spend Rp1.6 trillion (US$139.2 million) on medium-sized projects, including to acquire potential land for future projects.

Electronic City to Spend Rp1 Trillion Capex Adding More Local Stores Indonesia Finance Today – May 2, 2014

Jakarta – Electronic City Indonesia plans to spend Rp800 billion to Rp1 trillion (US$70 million to US$87

million) as its capital expenditure until 2015 to expand its network. By the end of 2015 or early 2016, it will have 100 branches in total.

Citra Mutiara Targets Young Professionals for Bali Condotel The Jakarta Post – May 2, 2014

Jakarta – PT Citra Mutiara Bestari plans to attract young middle-class professionals to invest in its second condotel, the Puri Menesa Condotel & Residence, which is located in the popular tourist destination of Nusa Dua, Bali. The sales price ranges between Rp600 million to Rp1.5 billion per unit.

Matahari’s Q1 Profit Rises by Half on Higher Sales The Jakarta Globe – May 1, 2014

Jakarta – Matahari Department Store reported its profit rising by half in the first quarter on higher sales, driven by higher spending among middle-income households. Net income in the January-March period climbed to Rp123.1 billion (US$11 million) from Rp82.2 billion in the same quarter in 2013.

Lippo Cikarang’s Q1 Profit Climbs on Increase in Land Sales The Jakarta Globe – May 1, 2014

Jakarta – Lippo Cikarang reported a 73% increase in profit in the first quarter on higher sales of industrial and commercial land. Its total revenue for the period increased 80% to Rp472.7 billion. Lippo Cikarang also

gets its revenue from selling residential homes and shop houses as well as from servicing charges.

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