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20231002_TUGU_Tanggapan atas Permintaan Penjelasan Bursa_31434073_lamp1.pdf
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Jakarta, 2 October 2023
No : 080/S/01/COS-ATPI/X/2023
Hal : Response to Indonesia Stock Exchange's Request for Explanation No.
S08251/BEI.PP3/09-2023
To:
Ms. Lidia M. Panjaitan
Head of PP3 Division – Indonesia Stock Exchange
Gedung Bursa Efek Indonesia
Jl. Jend. Sudirman Kav. 52-53,
Jakarta 10710
With respect,
Responding to the letter from the Indonesian Stock Exchange number S-08251/BEI.PP3/09-
2023 dated 26 September 2023 regarding the Request for Explanation on the Company's
Investment in PT Pertamina Geothermal Energy Tbk (PGEO) received on 27 September 2023
through IDXNet, we hereby submit the following response:
1. Regarding the recording of the Company's investment in PT Pertamina Geothermal
Energy Tbk (PGEO) in the Financial Statements Notes (CALK) 5 – Securities Investment
of 282,400,000 shares with a fair value of IDR247,100,000,000, please explain the
following matters:
a. The reason behind the Company’s investment in PGEO;
Response:
The Company considers several aspects to invest in PGEO shares, among others:
1) PGEO Overview:
▪ PGEO is one of the largest geothermal companies in Indonesia and
globally.
▪ Has a solid business model with stable Cash Flow due to the long-term
contracts, supported by a profitable price formation formula.
▪ Is a pioneer in Renewable Energy that supports Government programs
and will be an ESG-based investment for the Company.
2) Assessment of financial performance:
▪ From the study conducted, it can be concluded that PGEO's financial
performance is in a healthy condition, reflected in the FY21 and 1H22
performance results which recorded positive growth in revenue, net
profit, profitability and leverage.
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3) PGEO Share valuation :
Quoting research from PT Mandiri Sekuritas on 10 May 2022, it is stated that
the estimated enterprise value for FY23F is in the range of USD 3,112 million
– USD 3,743 million, implied by 10.0 – 12.1x EV/EBITDA 2023F, within the
current global peer range of approximately 8.5x -18.7x EV/EBITDA 2023F with
an average of 12.8x EV/EBITDA 2023F.
b. Price and date of acquisition of the Company's investment in PGEO;
Response:
The following is historical data on the Company's purchase of PGEO shares during
2023:
Settlement Number of Average
No Cost Value
Date Shares Share Price
1 28-Feb-23 248,911,300 845.03 210,337,192,254
2 1-Mar-23 20,250,000 840.83 17,026,850,025
3 2-Mar-23 15,900,000 822.68 13,080,650,160
4 3-Mar-23 7,000,000 820.34 5,742,401,700
5 6-Mar-23 2,600,000 832.98 2,165,750,080
6 7-Mar-23 2,600,000 869.59 2,260,930,880
7 8-Mar-23 6,200,000 857.50 5,316,500,000
8 9-Mar-23 300,000 860.00 258,000,000
9 10-Mar-23 100,000 860.00 86,000,000
10 13-Mar-23 1,200,000 852.08 1,022,499,960
11 14-Mar-23 5,100,000 847.92 4,324,411,890
12 16-Mar-23 2,700,000 823.47 2,223,380,070
13 17-Mar-23 1,700,000 813.82 1,383,499,950
14 20-Mar-23 13,200,000 788.47 10,407,854,160
15 21-Mar-23 900,000 798.70 718,829,010
16 24-Mar-23 300,000 798.33 239,499,990
17 27-Mar-23 1,100,000 795.91 875,500,010
18 28-Mar-23 2,338,700 792.43 1,853,266,565
Total 332,400,000 840.32 279,323,016,704
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c. The current percentage of the Company's ownership in PGEO;
Response:
Currently TUGU no longer has ownership in PGEO.
d. The reason and considerations of The Company classifies the Company's
investment in PGEO in the Third Party category, and does not record PGEO's
investment in the related party investment category.
Response:
The Company hereby confirms that there was mistake in classifying the Company's
investment in PGEO, this investment should be recorded in the related party
investment category.
2. Regarding the evaluation of the fulfillment of the Company's investment conditions in
PGEO in accordance with PSAK 71 – Financial Instruments, Financial Assets with the
Fair Value through Profit or Losses (FVTPL) classification, please explain:
a. The Company's consideration for classifying the Company's investment in PGEO as
available-for-sale securities and changes in fair value are stated in Fair Value
Through Profit or Loss (FVTPL) in accordance with Paragraph 4.1 Financial
Classification of PSAK 71 - Financial Instruments;
Response:
In general, the Company has not implemented PSAK 71 in investment reporting.
The current recording policy still refers to PSAK 50/55, where the PGEO share
portfolio is included in the Available for Sale (AFS) classification. The Company
which operating in the insurance sector is allowed to apply PSAK 71 along with
with PSAK 74 (Insurance Contracts) on 1 January 2025.
b. Analysis of the Company's Solely Payments of Principal and Interest (SPPI) in
accordance with PSAK 71;
Response:
Due to the Company still refers to PSAK 50/55, the Company has not carried out
an SPPI analysis on its PGEO share ownership.
c. The Company's considerations to recorded the Company's investments in PGEO in
accordance with PSAK 71 compared with the provisions of PSAK 15 - Investments
in Associated Entities and Joint Ventures. Considering that the Company and PGEO
are entities under the same control and controlled by PT Pertamina (Persero);
Response:
As previously explained, the Company does not record the PGEO investment value
using the equity method (PSAK 15) due to management's intention and medium-
term business strategy to classify these financial instruments for trading (AFS).
d. The Company's consideration to not use the equity method for recording
investments in PGEO in accordance with Paragraph 16 on the Application of the
Equity Method in PSAK 15;
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Response:
As explained in the previous point, the Company classifies share investments in
PGEO as available for sale (AFS) financial instruments in accordance with policy
and management's medium-term business strategies with the aim of obtaining
dividend income and potential for realized profit from increases in the issuer's
share price which is considered still undervalued at the time the investment placed.
e. Provisions on PSAK or other accounting guidelines that underlie the Company's
presentation of the PGEO investment.
Response:
There are no PSAK or other accounting guidelines that underlie the Company's
recording method for investment in PGEO other than PSAK 50/55 because PSAK
71 has not been implemented by the Company at this time.
3. Regarding the evaluation of the fulfillment of the Company's investment conditions in
PT Pertamina Geothermal Energy Tbk (PGEO) in accordance with PSAK 15 – Investment
in Associated Entities and Joint Ventures, please explain further the following:
a. Complete the table below:
PSAK 15 Criteria. Paragraphs 5-6 Explanation
The Company’s direct ownership in The company owned 282,400,000 shares
PGEO which were purchased according to the market
price purchase mechanism on the IDX,
currently all shares have been sold.
The Company’s indirect ownership on The Company does not have indirect ownership
PGEO in PGEO's capital structure.
The potential voting rights or convertible The Company does not have potential voting
equity instruments such as warrants, rights or convertible equity instruments such as
share purchase options, etc. of the warrants, share purchase options, etc. of the
Company in PGEO; Company in PGEO.
The existence of The Company Down The Company does not have any down payment
Payment for Investment as of 30 June for investment in PGEO.
2023 at PGEO;
Representation of the Company's The company does not have representation of
directors and board of commissioners directors or commissioners at PGEO.
at PGEO;
Participation in the Company's policies The Company does not participate in PGEO
making process, including participation policies making process, either in operations or
in decision making regarding dividends dividend distribution.
at PGEO;
The existence of material transactions The Company does not have material
between the Company and PGEO; transactions with PGEO.
Exchange of the Company's managerial The Company does not exchange managerial
personnel with PGEO; personnel with PGEO.
Provision of the Company's essential The Company does not provide essential
technical information with PGEO technical information with PGEO.
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4. Regarding the news in the following media:
• TUGU shares soared for almost 8%, due to big profits from PGEO?
(https://www.cnbcindonesia.com/market/20230925102550-17-475213/saham-
tugu-melejit-nyaris-8-gara-gara-cuan-gede-di-pgeo)
• Buy Up PGEO Shares, Secretly TUGU generated big profit of Hundreds of Billions
(https://www.cnbcindonesia.com/market/20230924233939-17-475120/borong-
saham-pgeo-diam-diam-tugu-cuan-bagger-ratusan-miliar)
Please explain the following:
a. Does the Company know about news related to the Company?
Response:
The Company is aware of news related to the Company published by
www.cnbcindonesia.com through media monitoring activities carried out by the
Company.
b. Clarification of the news;
Response:
The news published by www.cnbcindonesia.com does not originate from the Company.
It can be seen from the news, the news article is a journalistic product from the CNBC
Indonesia research team point of view.
c. Impact on the Company's shares liquidity in connection with this news
Response:
From TUGU share trading transactions on September 25 2023, along with the
publication date of this news, we convey the following:
• TUGU share trading opened at 1,225 and moved in the range of 1,210 – 1,325
and closed at 1,220, or increase 2.5% from the closing price in 22 September
2023 which recorded at 1,190.
• TUGU trading volume also increased from 3.7 million shares (22 September 2023)
to 46.2 million shares (25 September 2023).
However, the Company cannot confirm whether the increase in trading volume and
TUGU share price on 25 September 25 was the impact of these 2 news articles.
5. Information or other important events that are material and can affect the Company's
survival and can affect the Company's share price.
Response :
Currently, there is no information or other important events that are material and could
affect the Company's viability and could affect the Company's share price.
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The Company therefore convey the response. Thank you for your kind attention and assistance. Yours Faithfully, Emil Hakim Financial and Corporate Service Director / Corporate Secretary Cc :Board of Director PT Asuransi Tugu Pratama Indonesia Tbk
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