Hiap Seng shares soar 75% after Indonesian oil giant Chandra Asri buys 11.9% stake
Hiap Seng shares soared in early trade on Wednesday (Jul 23) as news of the purchase broke, more than doubling in price to an intra-day high of S$0.028. The last time Hiap Seng shares traded at such levels was in October 2019, ShareInvestor data showed.
The counter finished the day at a multi-year high of 2.1 cents, 0.9 cents above Tuesday's closing price, on a hefty turnover of 204.1 million units.
Chandra Asri's entry could signal a future partnership between both companies, said Hiap Seng in a statement before trading commenced on Wednesday.
Chandra Asri is a subsidiary of Barito Pacific, the Indonesian power and industrial giant founded by billionaire tycoon Prajogo Pangestu.
Max Tan, Hiap Seng's chief executive officer, said the deal is 'a potential opportunity to explore strategic collaborations that will enhance long-term value for all stakeholders'.
Mashhad Dohadwala, projects and technology director at Aster Chemicals and Energy – a joint venture between Chandra Asri and global commodities trader Glencore – said a strategic relationship with Hiap Seng would strengthen Aster's foundation to position it for future growth as it explores partnership opportunities.
Aster is reportedly in exclusive talks to buy oil major ExxonMobil's Singapore gas stations. Earlier this year, it completed the purchase of Shell's Singapore refinery and refining assets on Bukom and Jurong islands.
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Straits Times
5 hours ago
- Straits Times
President Prabowo aims to go after illegal mining, oil palm plantations; speed up free-meal scheme
Sign up now: Get ST's newsletters delivered to your inbox Mr Prabowo, 73, in both speeches, also outlined other priorities for his five-year term through 2029. - Indonesian President Prabowo Subianto promised a broad crackdown on illegal mining and oil palm plantations, while accelerating his flagship free-meal programme in closely-watched twin speeches on Aug 15, as he laid out his vision for South-east Asia's biggest economy. Unveiling a 3,786.5 trillion rupiah (S$299.62 billion) government budget for 2026, or 7.3 per cent higher than the latest estimate for 2025 spending, he promised to continue spurring downstream industries in critical minerals such as nickel and copper – key ingredients in renewable projects – to allow Indonesia to benefit from higher export proceeds. The budget proposal – with a deficit forecast at 2.48 per cent of gross domestic product – is based on an economic growth target of 5.4 per cent, an inflation rate at 2.5 per cent and the rupiah trading at 16,500 per US dollar on average for 2026, along with several other indicators. Mr Prabowo, 73, in both speeches, also outlined other priorities for his five-year term through 2029. These included strengthening recently established sovereign wealth fund Danantara; providing ample financing support to farmers, fishermen and villagers through setting up 80,000 cooperatives nationwide to ensure they obtain the best prices for their produce; expanding edible crops to improve food self-sufficiency; and establishing 20 'gifted schools' for the top one per cent of Indonesia's students. His state of the nation speech in the morning was his first as the country's leader. The budget presented later that afternoon in Parliament was the first proposal developed by Mr Prabowo's administration after he took office in October 2024. The 2025 budget was prepared by his predecessor, Mr Joko Widodo. Top stories Swipe. Select. Stay informed. Singapore Ong Beng Seng fined $30k in case linked to ex-minister Iswaran after judge cites judicial mercy Singapore Why was Ong Beng Seng fined instead of jailed? 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'We have to do more to drive the sector that absorbs a lot of labour, such as agriculture.' Mr Prabowo, in his speeches, pointedly did not renew his commitment to the new Indonesian capital Nusantara, unlike in speeches soon after taking office when he pledged to complete the East Kalimantan project. Adding to uncertainty over his stance on the new capital, Mr Prabowo is slated to host Indonesia's 80th Independence Day celebrations, on Aug 17, in Jakarta. Nusantara is a pet project of Mr Widodo. Both Mr Prabowo and Mr Widodo celebrated Independence Day in Nusantara in August 2024, but ties between the two have since frayed. The government has saved about 300 trillion rupiah by slashing 'expenses which are prone to corruption and manipulation', including unnecessary overseas junkets, excessive meetings and other non-essential expenditures. 'We will not hesitate in unravelling major corruption cases,' he said in his budget announcement. In his state of the nation address earlier in the day, the president said the crackdown on illegal mining and oil palm plantations are part of the government's move to curb corruption. On illegal mining, he noted that there were 1,063 illegal mines – those operating without proper mining licences – in the country and appealed to lawmakers and political parties for their support for government action. He said those behind these illegal mines include very influential persons, active as well as former military or police generals. 'There is no reason the government wouldn't take action for the sake of the people,' Mr Prabowo said, prompting a standing ovation from the House. He said a survey found that palm plantations on 3.7 million ha – or nearly twice the size of Johor state in Malaysia – were operating in violation of the law. Indonesia is the world's biggest producer and exporter of palm oil, with its main growing areas in Sumatra and Kalimantan. He added that 5 million ha of oil palm plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors. 'We will ensure that the Indonesian people will not fall victim to greedy economics,' Mr Prabowo said, with the government having already seized 3.1 million hectares of illegal palm plantations with the help of the military. 'We have used the military to accompany the teams that took over the plantations because there often is resistance,' he said. Responding to critics over the free-meal programme for students and pregnant mothers, he said: 'Our goal... is to be free from poverty, free from hunger, free from suffering,' he said. Some 20 million people are being fed under the scheme, with a final target of 82.9 million. Indonesia launched the ambitious meals programme in January 2025 to combat stunted growth due to malnutrition, a key election promise of Mr Prabowo, but there have been concerns over the sustainability of such a scheme in the long term. Prof Wibisono Hardjo Pranoto, an economist at Surabaya University said a budget deficit is acceptable as long as the spending is planned and the money is used for productive purposes. 'Spending more than the revenue number is fine. We need... to do effective allocation of the funds so we can service the debts,' he added.
Business Times
10 hours ago
- Business Times
Indonesia targets 5.4% growth in 2026 with big spending on food security, energy, free lunches
[JAKARTA] Indonesian President Prabowo Subianto has proposed a 2026 budget of 3,786 trillion rupiah (S$297.7 million), aimed at strengthening food and energy security while sustaining his high-profile free lunch programme. The plan also seeks to leverage the country's new sovereign wealth fund, Danantara, and private investment to drive the economy towards 5.4 per cent growth next year. Prabowo said the budget is designed to ensure Indonesia remains strong, self-reliant and prosperous. It was presented to parliament on Friday (Aug 15), following the president's first State of the Nation address ahead of the country's 80th Independence Day on Sunday. Indonesia will allocate 164.4 trillion rupiah for its food security programme, funding the development of new farmland and subsidised fertiliser for 9.26 million tonnes, as the government aims to boost agricultural self-sufficiency and reduce imports. State revenue is projected at 3,147.7 trillion rupiah next year, with an estimated budget deficit of 638.8 trillion rupiah, or 2.4 per cent of gross domestic product. Meanwhile, inflation is targeted at around 2.5 per cent. 'The government is committed to continuing budget efficiency measures to keep the deficit as low as possible,' Prabowo said, adding that he expects Indonesia to achieve a zero budget deficit by 2027-2028. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The government and parliament have nearly six weeks to review and deliberate on the draft before it is finalised and passed into law in October. Nafan Aji Gusta, senior market analyst at Mirae Asset Sekuritas, said Prabowo's 2026 plans are highly optimistic, but market participants are waiting to see how the policies will be implemented. The Jakarta Composite Index was down 0.41 per cent on Friday, after briefly reaching an all-time high during midday trading. Record levels were hit for a second consecutive session, supported by optimism over potential US Federal Reserve rate cuts this year and increased clarity on US tariffs. 'The budget reveal could potentially boost market confidence, allowing investors to optimise their portfolio performance through various adjustments,' said Gusta, noting that the upcoming Bank Indonesia policy meeting on Aug 20 and the inclusion of several Indonesian firms in the MSCI Emerging Markets Index are expected to drive passive inflows. Weakening purchasing power Indonesia's economy grew 5.12 per cent in the second quarter, beating expectations. However, the nation of 280 million is grappling with weakening consumer purchasing power and looming export pressures from US tariffs. 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He said the government is also planning a crackdown on mining, adding that it had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago. He did not specify what type of mines or the commodities they were extracting. Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia. Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability.
Straits Times
11 hours ago
- Straits Times
Indonesia's 2026 budget designed to make the country strong, President Prabowo says
Sign up now: Get ST's newsletters delivered to your inbox Indonesian President Prabowo Subianto said efficiency measures would be needed to reduce the country's budget deficit. JAKARTA – Indonesia's President Prabowo Subianto on Aug 1 5 said his budget for 2026 would be designed to ensure the South-east Asian country was strong, independent and prosperous, as he delivered his first speech on fiscal policy to parliament. The budget proposal is the first developed by Mr Prabowo's administration after he took office in October 2024 . The 2025 budget was prepared by his predecessor, Mr Joko Widodo. Mr Prabowo has pledged to lift spending as he seeks to raise economic growth to 8 per cent during his five-year term and deliver on his campaign platform of improving welfare and achieving food and energy self-sufficiency. In his address, Mr Prabowo said the 2026 budget deficit was seen at 2.48 per cent of gross domestic product. He said efficiency measures would need to be taken to reduce the gap and vowed to have no deficit by 2027 or 2028. For 2026, he proposed to spend 335 trillion rupiah ( S$26.3 billion ) on his flagship programme to deliver free meals to 82.9 million students, children and pregnant women. Mr Prabowo allotted 171 trillion rupiah for the free meals programme this year, which he said has reached about 20 million recipients. Top stories Swipe. Select. Stay informed. Singapore Ong Beng Seng fined $30k in case linked to ex-minister Iswaran after judge cites judicial mercy Asia Sun Haiyan, ex-China ambassador to S'pore, detained for questioning: Sources Life Online travel agencies Klook and make debut in Natas Travel Fair Singapore Jail for drink-driving cop in hit-and-run accident, victim suffered multiple fractures Life How do household bomb shelters in Singapore really work? Life Blank canvas: JTC offers black-and-white bungalows for lease at Rochester Park He also promised budgetary support to decarbonise Indonesia's electricity, saying he wanted the country to use 100 per cent renewable power sources in the next ten years or earlier. Indonesia currently relies on coal for over half of power generation. In his address, Mr Prabowo, a former defence minister and special forces commander, also said Indonesia must modernise its military hardware, adding his country had rare earths deposits that were vital to modern defence. REUTERS
