BCAS Vista 04 Feb-20

Jan-20 audience share: SCMA increased audience share on all segment

•    Jan-20 audience share has shown that SCTV has successfully increase its audience share across segment to 17.7% for all time, 20.9% for prime time, and 15.9% for non-prime time. This is supported by their ongoing top of the chart drama called “Samudra Cinta” and “Cinta Karena Cinta” on its prime time slots.

•    On the other hand, IVM has also escalated their audience share to 17.8% for all time, 15.9% for prime time, and 18.9% for non-prime time. IVM’s overall increase on its audience share is boosted by the new dramas started early this month, including religious drama called “Banyak Jalan Menuju Rhoma” on its prime time slot and the one-time drama series “Suara Hati Istri”.

•    Meanwhile, RCTI’s audience share declined to 13.7% for all time, 15.3% for prime time, and 12.8% for non-prime time; with ‘Tukang Ojek Pengkolan” still maintained its spot in the top 5 daily audience share.

•    Overall, the audience share has resulted to SCMA’s Jan-20 audience share increased to 35.5% and 36.8% for all time and prime time, respectively; while MNCN’s Jan-20 audience share declined to 32.3% and 32.0% for all time and prime time, respectively. (Company)

Comment: The traction on Samudra Cinta, which is launched since 2nd of December 2019, is still shown to be strong; this will give SCMA’s momentum for more viewers in the next couple of months. Note that in 2020, we expect MNCN to increase its blended rate card by 10.8% and SCMA by 11.0% (by 1H20). However, we are still more optimistic on MNCN’s digital revenue growth supported by the high demand on its local contents compared to SCMA’s Vidio.com that are still expecting to book a loss this year. Our latest stance: BUY on MNCN as our top pick with TP IDR2,100 and BUY on SCMA with TP IDR2,200

Gojek, Grab prices now included in inflation calculation

Statistics Indonesia (BPS) has started to include prices of services provided by ride-hailing startups Gojek and Grab, among other new components, in the country's inflation calculation. BPS head Suhariyanto said that there are 98 new commodities, such as cellphone accessories and Grab and Gojek prices (that are incorporated in the CPI) as these components are growing significantly and have substantial economic activities. In addition to the new components, BPS also changed the CPI base year to 2018 from 2012. Therefore, January’s inflation figure cannot be compared with December's inflation rate of 2.72% since it was not “an apple-to-apple" comparison. But it might not significantly affect this year's inflation rate compared to the previous years, according to BPS. (Jakarta Post)

Government aiming 90% of pharmaceutical distributor certification

The Indonesian Food and Drug Monitoring Agency (BPOM) targets 90% of the pharmaceutical wholesaler to have a certification for drug distribution. According to BPOM, from a total of 2,081 pharmaceutical wholesaler, only 63.7% have owned the certificate. BPOM has accelerated the process of its certificate to 49 days from previously 89 days. (Bisnis Indonesia)

Bank Tabungan Negara (BBTN) to focus on housing financing

BBTN’s CEO, Pahala N Mansury, state that the company will still focus on housing financing sector which has multiplier effect for 170 other industries, hence it will contribute to the economy. In another context, BBTN received 55,137 application from Sikasep program, since its first launch in Dec-19. (Investor Daily)

Mitra Adiperkasa (MAPI) collaborates with Amore Pacific Group

MAPI, under collaboration with Amore Pacific Group, the biggest beauty company from South Korea, is going to distribute Amora Pacific Group’s product in Indonesia through its subsidiary, Kosmetik Lestari Adiperkasa. MAP Group’s CEO, VP Sharma, stated that this collaboration is aimed to strengthen the company’s portfolio in beauty business and premium global brand segment. (Investor Daily)

Medco Energi International (MEDC) to issue IDR1.5tn bonds

MEDC will issue IDR1.5tn shelf registered bond III phase III this year, which will be divided into 2 series: series A of IDR908.7bn with 3-years tenor and coupon rate of 8.9%; and Series B of IDR476.2bn with 5-years tenor and coupon rate of 9.3%. Note that the bonds has received idA+ rating from Pefindo. (Kontan)

Perusahaan Gas Negara (PGAS) to adjust gas price in April

PGAS plans to adjust gas price to a maximum of USD6 per MMBtu effective on 1-Apr-20 as referred in Presidential Regulation no 40/2016 regarding the stipulation of natural gas price. There are 7 industrial sectors that has to get a maximum gas price of USD6 per MMBtu, which are fertilizer, petrochemical, oleochemical, steel, ceramic, glass and rubber gloves. PGAS, SOE Deputy Minister, Ministry of Energy and Mineral Resources (ESDM) and Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) are currently discussing alternatives to the price reduction scheme, such as lowering the transportation cost in both transmission and distribution, removing the VAT imposed on upstream gas as PGAS does not charge VAT on the selling price, and removing the royalty in order to make the gas price more competitive. Other than that, Company also considers  to implement Domestic Market Obligation (DMO) or to conduct new import policy on gas. (Investor Daily, Bisnis Indonesia)

Sinar Mas to construct ICE business park II

Sinar Mas plans to continue developing business area in BSD city, South Tangerang, as the response to the success of ICE Business Park phase I. Sinar Mas Land’s Commercial CEO, Hongky J. Nantung, stated that shop-houses in Business Park phase I were sold out within a week. The ICE Business Park phase II will be a 3-floors building with only 64 units and will be marketed on 15th Feb-20. In addition, the Sinar Mas Land will offer the ICE Business Park with the price starting at IDR2.88bn per unit. (Bisnis Indonesia)

Nusantara Infrastructure (META) projects 10% growth on toll-road revenue

This year, META expects its toll-road revenue to grow by 10% supported by the tariff adjustment and higher traffic. META’s General Manager Corporate Affairs, Deden Rochmawaty, stated that its Jalan Tol Seksi Empat (JTSE) has gained tariff adjustment in end-19, while its Bosowa Marga Nusantara (BSW) and Bintaro Serpong Damai (BSD) have recently received tariff adjustments which will be effective beginning 31-Jan-20. In addition, Jalan Tol Layang Pettarani is expected to reach completion in 3Q20. (Bisnis Indonesia)