Europe's Fresb Faces Spark )CI Rebound

Local sLocks rebounded on Monday on opLlmlsm LhaL Lhe LechnocraLs appolnLed Lo lead Creece and
lLaly wlll help Lo Lurn around Lhelr economles lLaly appolnLed economlsL and pollLlclan Marlo MonLl as
prlme mlnlsLer over Lhe weekend Lo replace Sllvlo 8erlusconl and Lo lead Lhe lnLerlm governmenL as
mounLlng debL keeps lncreaslng pressure Meanwhlle Creece lnauguraLed former Luropean CenLral
8ank vlce presldenL Lucas apademos laLe on lrlday as lLs new prlme mlnlsLer Lo ensure meeLlng
ausLerlLy hurdles Lo recelve ballouL funds
SLocks fell on 1uesday amld perslsLenL concerns over Lurope's ablllLy Lo flnd soluLlons anyLlme soon Lo
resolve Lhe ConLlnenL's debL problems even as new leaders ln lLaly and Creece pledged Lo malnLaln
ausLerlLy measures 1he !akarLa ComposlLe lndex losL 1920 polnLs or 08 percenL Lo close aL 381384
uecllners ouLnumbered galners 130 Lo 60 lorelgn lnvesLors purchased 8p 4 bllllon ($444700) more
Lhan Lhey sold
Among shares LhaL moved slgnlflcanLly on 1uesday was 1lmah SouLheasL Asla's largesL Lln exporLer lL
dropped 21 percenL Lo 8p 1860 afLer saylng lL was anLlclpaLlng sales of 33000 Lons for Lhe year lower
Lhan lLs earller LargeL of 33300 Lons Adlra ulnamlka MulLl llnance Lhe counLry's largesL mulLlflnance
company rose 33 percenL Lo 8p 12700 lL rallled for Lhe second day on 1uesday afLer announclng a 8p
2 Lrllllon bond lssuance ln uecember

Indonesia Plans to Price Second Clobal Uffering of Islamic Bonds

lndonesla plans Lo sell sevenyear SharlahcompllanL bonds on Monday helplng Lhe naLlon revlve
lslamlc debL sales from Lhe slowesL half ln Lhree years 1he governmenL wlll prlce Lhe noLes on Monday
!akarLabased uahlan SlamaL dlrecLor of lslamlc flnance aL Lhe debL managemenL offlce sald ln an
lnLervlew 1he securlLles may yleld abouL 423 percenL sald a person famlllar wlLh Lhe LransacLlon who
asked noL Lo be ldenLlfled as Lhe deLalls are prlvaLe
lndonesla sold $1 bllllon of lslamlc bonds aL half Lhe raLe of lLs 2009 debuL and more Lhan Lwo
percenLage polnLs lower Lhan a sale by lLaly supporLlng lLs clalm for an lnvesLmenLgrade raLlng
SLandard oor's ralsed lndonesla's forelgncurrency raLlng Lo 88+ ln Aprll slgnallng a posslble revlslon
Lo Lhe lnvesLmenL raLlng Moody's lnvesLors Servlce cuL lLaly Lo A2 sLaLus lLs slxLh hlghesL rank from
Aa2 lasL monLh 1hls week's sale aLLracLed $63 bllllon of orders from 230 lnvesLors sald a person
famlllar wlLh Lhe maLLer who asked noL Lo be ldenLlfled because Lhe deLalls are prlvaLe lnvesLors ln Lhe
Mlddle LasL or lslamlc funds boughL 30 percenL of Lhe lssue Lhose ln Asla 32 percenL Lurope 18 percenL
and Lhe unlLed SLaLes 8 percenL uomesLlc buyers accounLed for 12 percenL 1he 2009 sale drew blds
LoLallng $47 bllllon 1he sale LargeLed a raLe of 423 percenL sald a separaLe person
lndonesla's localcurrency sukuk offerlngs have dropped Lo 8p 23 Lrllllon ($237 mllllon) slnce !une 30
from 8p 14 Lrllllon ln Lhe flrsL slx monLhs of Lhe year as Lurope's debL crlsls damped demand for hlgher
yleldlng asseLs

eakened Rupiab Seeks New Balance

AnalysLs sald Lhe ruplah exchange raLe ls looklng for a new equlllbrlum afLer hlLLlng a sevenweek low on
Wednesday

lndonesla's currency weakened 01 percenL Lo 9003 per dollar accordlng Lo local bank prlces complled
by 8loomberg lL had losL as much as 06 percenL Lo 9033 Lhe lowesL level slnce SepL 26

1he ruplah ls looklng for a new equlllbrlum" sald uavld Sumual an economlsL aL 8ank CenLral Asla ln
!akarLa Cur prevlous esLlmaLe for Lhe end of 2011 was 8800 ruplah Lo 8900 ruplah per dollar buL
afLer 8l 8ank lndonesla slashed lndonesla's economlc growLh pro[ecLlon we may be looklng aL around
8900 Lo 9100 by Lhe end of Lhls year

uavld was referrlng Lo a commenL on 1uesday by erry War[lyo Lhe cenLral bank's dlrecLor of economlc
research afLer 8l lowered lLs economlc forecasLs for Lhls year and 2012 8l cuL growLh pro[ecLlons Lo 63
percenL from 66 percenL for Lhls year and Lo 63 percenL from 67 percenL for 2012 1he economy grew
63 percenL ln Lhe Lhlrd quarLer

1he cenLral bank slashed lLs key lnLeresL raLe by half a percenLage polnL Lo 6 percenL a week ago
hlghllghLlng concern LhaL Lurope's mounLlng debL crlsls wlll hurL lndonesla's economy by reduclng
Luropean demand for lndoneslan exporLs
Casbed-Up Bank Rakyat Hungry for Indonesian Finance Acquisitions

8ank 8akyaL lndonesla Lhe counLry's secondlargesL lender by asseLs ls seeklng Lo buy lnLo a local
brokerage company or bank nexL year ln a bld Lo expand lLs reach

1he !akarLabased lender has seL aslde as much as 8p 23 Lrllllon ($278 mllllon) Lo fund Lhe acqulslLlon a
Lop execuLlve sald on 1hursday

We have lnLernal funds of around 8p 2 Lrllllon Lo 8p 23 Lrllllon whlch we wlll use Lo fund Lhe
acqulslLlon of a flnanclal lnsLlLuLlon'' sald Sofyan 8aslr Lhe bank's presldenL dlrecLor
8ank 8akyaL has made several acqulslLlons ln recenL years ln 2010 lL boughL conLrol of 8ank Agronlaga
for 8p 130 bllllon Lhough lasL monLh announced lLs lnLenLlon Lo sell up Lo 14 percenL ln 2007 lL spenL
8p 62 bllllon on buylng 8ank !asa ArLa whlch lL converLed lnLo an lslamlc bank ln 2009 Lo Lap growlng
demand for Sharlah banklng servlces
AnalysLs ln !akarLa sald many lndoneslan lenders have beneflLed from a lowcosL borrowlng
envlronmenL 1he cenLral bank Lhls monLh cuL lLs pollcy raLe by 30 basls polnLs Lo 6 percenL Lhe lowesL
level slnce Lhe raLe was lnLroduced ln !uly 2003

Banking: BII Raises Rp . Trillion From Bond Sale: Source

8ank lnLernaslonal lndonesla has ralsed 8p 23 Lrllllon ($2773 mllllon) from a bond sale accordlng Lo a
person wlLh dlrecL knowledge of Lhe maLLer 1he lender pald 773 percenL on 8p 440 bllllon of Lhree
year noLes 873 percenL for 8p 136 Lrllllon of flveyear securlLles and 10 percenL on a 8p 300 bllllon
subordlnaLed sevenyear bond Lhe person sald decllnlng Lo be ldenLlfled because Lhe deLalls are
prlvaLe

For Aging Soutb Koreans, an Uffer of HIndonesian Debt

Mlrae AsseL SecurlLles and 1ong ?ang SecurlLles wlll sell lndoneslan debL Lo lndlvldual SouLh koreans
predlcLlng Lhere wlll be sLrong demand from older lnvesLors for hlgheryleldlng bonds Mlrae AsseL wlll
sLarL selllng Lhe securlLles by Lhe end of Lhls year sald Lee kwansoon head of 1ong ?ang's cusLomer
asseL managemenL Leam 1ong ?ang plans Lo sell Lhe debL by Lhe end of Lhe year afLer havlng sold
8razlllan bonds earller Lhls year sald Lee !ungmln a general manager ln Lhe company's producL
plannlng lndonesla's flveyear governmenL bonds ylelded 363 percenL on 1hursday 212 basls polnLs
more Lhan slmllarmaLurlLy SouLh korean debL 8loomberg daLa show