HEADLINE NEWS - JP Morgan

* Politics – President SBY and his democratic party have kept their upper hand in the government, after Golkar and PKS failed to pass changes to tax authorithy. The press sees Gerindra party (Mr. Prabowo) instrumental in swinging the vote in favour of SBY, mentioning the scope for changes in government coalition. The press speculates the event to have interesting implications on the upcoming cabinet reshuffle, with more representations from Gerindra party and potentially less from Golkar and PKS.

* PT Inco – some residents (around 52 thousand individuals) of Morowali, Central Sulawesi, filed a class action suit against PT Inco and the government, concerning the lack of mining development in the area by PT Inco. The company has been given the concession since 1969, the nickel reserves there has not been exploited for the good of the public. (Bisnis Indo). My take – could be related to earlier news about the mining authorithy wanting to re-allocate part of PT Inco’s concession area for a Chinese mining company. Nickel took a beating overnight.

* Astra International (ASII) – subsidiary FIF booked a 45% yoy rise in net income to Rp1.17trn. NPL stays at relatively low level of under 1%. (Investor Daily).

* Adaro (ADRO) – subsidiary Sapta Indra Sejati (SIS) raised new US$400mn debt facility, partly to refinance US$215mn debt that is supposed to be due in 2013. (Kontan).

* First Media (KBLV) – targeting 700 thousand subscribers by the end of 2011, from only 300 thousand at the end of 2010. The number of home pass currently is 500 thousand, and the company is looking to add 200 thousand home pass with capex of US$200/home. The company has also completed the acquisition of a content company PT Jaring Data Interaktif, now owning 100%. (Kontan).