INVESTMENT AND SHARE

WIKA Attract U.S. $ 314 Million Project
PT Wijaya Karya Tbk (WIKA) have finally succeeded in winning the tender for the development of Chemical Grade Alumina (CGA) is owned by PT Indonesia Chemical Alumina (ICA), a subsidiary of PT Aneka Tambang Tbk (ANTM). WIKA Tsukishima Kikai Co. along with. Ltd., and PT Nusea has been appointed to work on the Engineering, Procurement, and Construction (EPC).

Bimo Budi Satriyo, ANTM Corporate Secretary, said that with this appointment, and a consortium currently WIKA ICA Group, will begin negotiating the terms and conditions of the EPC project. Ben hopes this project can commence construction in 2010 and begin commercial operations in 2014. This project is planned to produce 300,000 tons per year CGA.

After winning the tender was announced, the next ANTM live thinking of financing the project. They were trying to get funding from the Japan Bank For International Cooperation (JBIC). If JBIC is not capable of providing maximum funds, ANTM will try to get it from another commercial bank.

Construction is expected to be carried out in the fourth quarter of 2010 was, according to Alwin Syah Loebis, Director of ANTM.

CGA in project development, ANTM collaboration with two Japanese companies, namely Showa Denco KK (SDK) and Marubeni Corporation. ANTM project will finance 35% from 65% internal cash and bank loans.

Company Secretary Argawan Christmas WIKA WIKA confirmed the news that the consortium had won the tender with such ANTM. Project value of around U.S. $ 314 million, said Christmas.
Christmas added, this time his side were discussing how many servings of each company in this project. WIKA portion of the project, hopes to get about Rp 1.3 trillion.

To fund the 30% requirement of this project cost, WIKA will use internally generated cash. The rest is a combination of advances, loan payments and continued to third parties. We are still counting his cash flow, added Christmas.

In the first quarter-2010, at WIKA available cash funds amounting to Rp 997.69 billion. This company has a bank loan amounting to Rp 122 billion. Currently WIKA still bagging facilities from several banks, such as a bank guarantee from BRI worth Rp 1.5 trillion and DBS Bank of Rp 175 billion. WIKA facility could be used to supplement working capital projects. In January-March period, the net profit grew 40% WIKA to Rp 64.27 billion.

Bhakti Securities analyst Reza Nugraha rate, to be fair if the winning bidder WIKA Tayan project. As a fellow state-owned, very disadvantaged position and WIKA WIKA also has good credibility, said Reza.

He noticed, during this approximately 60% -70% WIKA projects comes from the government. Hence, Reza rate in 2010 and 2011, WIKA very good prospects as the number of government infrastructure projects. Conditions that would automatically push up revenues WIKA.

Projections No Makers
Fluctuations Composite Stock Price Index (CSPI) on May 24, 2010 was not predictable. At the first session of trading, the index is still likely to rise after last week continued to weaken. However, at the second session until the close of trading, the index fell and ended at 2609.61 level, 0.52% lower than the closing position, dated May 22, 2010.

JCI decline in the second session is due to collapse of stock prices of seven issuers in Bakrie Group, which is popular among investors as The Seven Brothers. Look at the price of shares of PT Bumi Resources Tbk (BUMI) tumbled 16.24% to 1780 per-share position.

Ironic, though the regional indices are generally green. JCI failed to take advantage of the momentum from the strengthening of Down Jones index at the weekend and regional indices. We expect the index will still be under pressure for the short term, said Purwoko Sartono, Panin Securities analyst.

Likewise, Tasrul Tanar, analyst with OSK Nusadana, see, JCI will move is uncertain. According to him, the index will try to 2584-2680 levels. To date May 26, 2010, I recommended shares of banks such as BMRI, BBCA and BBRI.

Purwoko actually recommend avoiding shares of consumer goods and commodities stocks are still volatile. JCI, according to him, dated May 25, 2010 will move in the range 2575-2630.

Prone Prediction Correction
Unlike the Composite Stock Price Index (CSPI), which is still anemic, the exchange rate on May 24, 2010 again showed tajinya. Based on the middle rate of Bank Indonesia (BI), exchange rates are in Red and White is the level of USD 9269 per dollar, the United States (U.S.), or 0.71% higher than the previous day's closing. In the spot market, until around 16:59 pm, the rupiah also gained 0.13% to a level of Rp 9268 per U.S. dollar.

The strengthening of rupiah time is actually much underpinned by the strengthening of the index in the first session. In addition, regional currency carried sentiment that also experienced a strengthening against the U.S. dollar.
However, the possibility of triumph rupiah will not survive on this date May 25, 2010. Understandably, each toward the end of the month, the U.S. dollar tends to increase demand. Therefore, money market watchers predict Nurbaeti Nurul ETI, the rupiah will weaken again.

Another effect, according to Vice President Valbury Asia Futures Nico Omer Jonckheere is because the index in the country is still vulnerable to landslides. Typically, the index and the rupiah has a positive correlation.

Therefore, Nico suspect rupiah to the date of May 25, 2010 will move in the range of Rp 9240 to Rp 9325 per U.S. dollar. Meanwhile, Nurul predicted, the rupiah still tend to weaken the movement range between Rp 9,200 to Rp 9,300 per U.S. dollar.