EMERGING MARKETS INVESTOR: DR NEWS
By Gordon Platt
Five new, unsponsored American depositary receipt (ADR) programs for Indonesian companies were launched in March by BNY Mellon, targeting the strong corporate sector in the Asian economy.
Indonesia’s economy grew by 6.5% in 2011, its fastest rate in 15 years, and the country regained its investment-grade status. As a large part of Indonesia’s growth is driven by domestic consumption, it is laregely unaffected by global economic conditions.
The government is considering a privatization program later this year, which could include the sale of a stake in Bank Tabungan Negara (Perseo), one of the companies for which BNY Mellon created an unsponsored ADR in March.
Two coal-mining companies and a diesel-fuel distributor were among the other new unsponsored ADR programs announced by BNY Mellon. One of the coal miners, Borneo Lumbung Energi & Metal, completed the purchase of a 24% stake in energy and mining company Bumi Resources in January. The other, Harum Energy, mines coal and provides logistics services in East Kalimantan. BNY Mellon also created an unsponsored ADR program for XL Axiata, a mobile services provider with 40 million subscribers.