FLGS - Global Finance Report

- Starting in 2010, Indonesia’s banking top position shopping list more aggressive. They will acquire a number of banks in the ASEAN countries. Indonesia’s banks top position of their shopping list. During this January, two Indian-owned banks that have declared his intention to buy bank in Indonesia, namely the State Bank of India (SBI) and Union Bank.

Deputy Director and Executive Director of SBI Group Pratip Chaudhuri says, than other ASEAN countries, “Indonesia is our main priority,” as quoted by the oldest English-language daily in India, The Statesman, Sunday (24/1/2010). After Indonesia, banks in Thailand and the Philippines to be the next target.

In Indonesia, SBI Group banks aimed beraset Rp 1 trillion, with a minimum number of branch offices 40 offices. Acquisition budget 200 million U.S. dollars. “Target acquisition accomplished in the second quarter of this year,” added Subramanian Sathyamurthy, Director of Operations, Treasury, and Technology SBI Indonesia, to Cash, Tuesday (26/1/2010). The plan, SBI will combine this new bank with Bank Indomonex already ruled since 2006.

Do not want to miss, Union Bank claimed the shooting of four middle-class banks in Indonesia. Told The Financial Express, Indian government-owned bank that claimed to have received approval from shareholders of the bank in Indonesia. Other Indian banks that had expressed interest to enter Indonesia is the Punjab National Bank (PNB). However, that plan has not heard the rest until now.

Not only investors from India are seriously targeting banks in Indonesia. South Korean banks, such as The Industrial Bank of Korea (IBK) and the Korea Development Bank (KDB), also have the same interests. Management both the red plates bank claims are just waiting for approval from their shareholders to run the expansion.

Although looks aggressive, move investors from India and South Korea was practically behind when compared to investors from Malaysia and Singapore who first tasted the sweetness of a bank in the country.

Director of Licensing and Banking Information BI Bank Indonesia Swastanto Joni said, until now BI has not received application for a license acquisition from Korean investors. Finally, BI has received application for a license RHB Banking Group will acquire Bank Mestika Dharma.

The aggressiveness of foreign investors are apparently triggered by the sweetness of the banking business in the country. In addition to the broad market, they are tempted by the interest margin is nearly 7 percent and the liberal ownership rules, up to 99 percent.

Cash Fund in the form of foreign currency worth U.S. $ 2 billion flowing into the State General Treasurer accounts or BUN, another title from the finance minister, in Bank Indonesia or BI. This is a fund from the proceeds of state bonds or the dollar-denominated global bond by the government at the beginning of this January 2010.

“The fund has entered into our account at Bank Indonesia, Thursday (21 / 1) then,” said Director General of Debt Management, Finance Ministry, Rahmat Waluyanto in Jakarta, Sunday (24 / 1).

The entry of these funds will add to its reserves at the Bank Indonesia. However, at the same time, the influx of funds also increased the number of nominal bonds issued by state governments since 1997 to close to Rp 1,000 trillion at the moment, precisely Rp 998.154 trillion.

That is the data recorded at the Directorate General of Debt Management, Ministry of Finance, as of January 20, 2010.

State bonds or official called the State Securities (SBN) which is the largest bonds traded in the bond market, which reached Rp 743.6 trillion. That includes Government Bonds (SUN) fixed interest amounting to Rp 399.9 trillion.

After that, there was SUN with a floating interest rate (variable rate) whose value has reached Rp 143.3 trillion; and bonds without interest (zero coupon bond) is Rp 28.986 trillion. The bonds issued U.S. dollar-denominated to date has reached Rp 150.255 trillion.

The government also has published the Samurai Bond or bonds issued only in denominations of yen and only published in the Japanese bond market, which currently has reached USD 3.561 trillion. Other types of debt securities that have been published government is based Islamic bonds, or sukuk, which currently has reached Rp 17.561 trillion.

In addition to the outstanding bonds on capital markets, the government also still bear the burden of bonds that are not traded, the debt papers issued after the 1997 crisis. The total value of these bonds reached Rp 254.56 trillion.

The dollar traded near the strongest position in over 7 months following the signal the euro countries with the largest economy was gaining momentum from the high demand for assets.

The greenback is expected to continue strengthening this week ahead of the U.S. manufacturing sector report and household purchases. Both predicted experiencing expansion. Euro also potentially weaken the yen over the issue of Greece’s budget deficit widened more and more expected.

“The data coming out this week confirms that the U.S. economy improves. Improving economic fundamentals will support the U.S. dollar,” said Koji Takeuchi, senior economist Mizuho Research Institute Ltd. of Tokyo, today.

The dollar traded at U.S. $ 1.3864 per euro at 8:06 am in Tokyo, rose from U.S. $ 1.3863 in New York last week. The dollar was at 90.12 yen from 90.27 in New York. Euro survive the weakening yen 124.96 yen from 125.13, after a touching 124.43, the weakest level since 28 April.

Manufacturing index from the Institute for Supply Management is at 55.5 in January. Figures above 50 indicate the existence of expansion. This recovery continued to strengthen the signal in the U.S.. Likewise, the increase in household purchases of 0.3%.

Last week, the U.S. dollar strengthened encouraged by the report the Department of Commerce regarding the increase in GDP by 5.7% per year during the October to December. The increase is the fastest in 6 years.

Asian currencies weaken, led by the South Korean won and Philippine peso against the dollar on concern China will restrict kredi to hold regional export demand.

The MSCI Asia-Pacific Index dropped to the lowest level during 2010 after Reuters reported several banks in China to provide cash to increase reserves. Pressure on the won continues triggered by a report that GDP fell to 0.2% in the quarter IV of 3.2% the previous period.

“Asian Currency weakens influenced China talks about the possibility of doing the tightening and asked a number of banks to raise reserve ratios again. This led to indiscriminate selling Asian currencies, the yen strengthened on the other hand,” said Joanna Tan, a regional economist Forecast Singapore Pte.

Won weakened 1.3% to 1165.50 per U.S. dollar at 2:18 pm in Seoul and had time to reach 1166.50, its lowest level this year. Peso weakened 0.5% to 46.47 and the Malaysian ringgit to be depressed 0.6% 3.4205. Rupiah also down 0.4% to 9380.

China’s central bank earlier this month the bank raised compulsory registration deposits 0.25% to 16% to keep credit growth and prevent asset bubbles in shares and property.

Reports of credit tightening reduces the demand for shares in China market. This causes the Shanghai Composite Index fell 2.3%. While the external market is also down.

On the other hand, the yen and U.S. dollar gained on the euro. The yen strengthened to 126.44 per euro in Tokyo, from 127.75 in New York yesterday. U.S. dollar increased to USS1, 4092 per euro.

Taiwan dollar strengthened encouraged by government reports of a record increase in manufacturing production. The data that was launched this month showed Taiwan exports rise in line with the decline in the unemployment rate. Achievement was raised currencies to its highest level since September 2008.

“Taiwan dollar appreciation as a result of moving the entry of hot money into Asia, including Taiwan. The central bank is always in the market to overcome the high volatility,” said Tarsicio Tong, forex dealers Union Bank of Taiwan in Taipei.

South Korea’s economic growth slowed during the quarter IV exceeded the median estimate of the economy. Kim Myung-Kee, the Bank of Korea officials, said the slowdown that occurred in October through December is only temporary adjustment does not affect the national growth momentum.

“Global economic recovery is still in process and should be recognized, not as smoothly and as quickly as expected. So the market is still moving volatile during the quarter I,” said Lindawati Susanto, head of FX Trade PT Bank Resona Perdania in Jakarta.

Singapore dollar weakened 0.4% to S $ 1.4041 per U.S. dollar, Thai baht depressed 0.2% to 33.02. China Yuan unchanged at 6.8269

: The yen weakened the currency 16 main partner countries associated with the prospect of Federal Reserve Governor Ben S. Bernanke back to his post for the second period and continued economic recovery in the country in the world’s largest.

The yen weakened ATS euro for the first time in 8 days after President Barack Obama received assurances from the Senate office about the survival Bernanke. U.S. dollar weakened against a number of currencies with higher yields following a report by economists estimate that home sales in the U.S. fell in December.

“Slowly kondiri improved during Bernanke served. So far, the Senate gave support. It has the potential to raise the sentiment, ’said Robert Rennie, head of currency research Westpac Banking Corp. Sydney.

The yen weakened to 127.31 per euro at 9:11 pm in Tokyo, from 126.98 in New York on January 22.

The median estimate of economists say home sales in the U.S. fell to 6 million per year in December, from 6.54 million in November. National Association of Realtors will publish the data today.

According to the 91 economists surveyed, the Fed would keep overnight interest rates between 0% and 0.25% on January 27.