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Asset transaction Needs review INDY

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Page 1
                   DISCLOSURE OF INFORMATION
          IN RELATION TO AFFILIATED PARTY TRANSACTION
THIS DISCLOSURE OF INFORMATION IS MADE AND PROVIDED WITH REGARDS IN COMPLIANCE WITH
THE FINANCIAL SERVICE AUTHORITY REGULATION NO.42/POJK.04/2020 DATED 2 JULY 2020 ON
AFFILIATED PARTY TRANSACTION AND CONFLICT OF INTEREST ("POJK 42/2020") AND FINANCIAL
SERVICE AUTHORITY NO.31/POJK.04/2015 DATED 22 DECEMBER 2015 ON DISCLOSURE OF
INFORMATION OR MATERIAL FACT BY ISSUERS OR PUBLIC COMPANIES.

THE INFORMATION AS STATED IN THIS DISCLOSURE OF INFORMATION IS IMPORTANT TO BE READ
AND CONSIDERED BY THE SHAREHOLDERS OF THE COMPANY.

IF YOU FIND ANY DIFFICULTY TO UNDERSTAND THE INFORMATION AS STATED IN THIS DISCLOSURE
OF INFORMATION PLEASE CONSULT WITH YOUR LEGAL ADVISOR, PUBLIC ACCOUNTANT, FINANCIAL
ADVISOR OR OTHER PROFESSIONALS.

THE BOARD OF DIRECTORS AND THE BOARD OF COMMISSIONERS OF THE COMPANY, SEVERALLY
AND JOINTLY, ARE FULLY RESPONSIBLE FOR THE ACCURACY AND THE COMPLETENESS OF THE
INFORMATION AS STATED IN THIS DISCLOSURE OF INFORMATION. THE BOARD OF DIRECTORS AND
THE BOARD OF COMMISSIONERS DECLARE THAT THE INFORMATION STATED IN THIS DISCLOSURE
OF INFORMATION IS COMPLETE AND AFTER GIVING DUE AND CAREFUL EXAMINATION, EMPHASIZE
THAT THE INFORMATION STATED IN THIS DISCLOSURE OF INFORMATION IS CORRECT AND THAT
THERE ARE NO MATERIAL AND RELEVANT FACTS OMITTED TO BE DISCLOSED IN THIS DISCLOSURE
OF INFORMATION WHICH CAN CAUSE THE INFORMATION STATED HEREIN TO BE UNTRUE AND/OR
MISLEADING.

AFTER DUE CONSIDERATION, THE BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS OF THE
COMPANY, INDIVIDUALLY AND COLLECTIVELY, STATE THAT THIS TRANSACTION IS NOT CONSIDERED
AS CONFLICT OF INTEREST AS GOVERNED IN POJK 42/2020.

THE BOARD OF DIRECTORS OF THE COMPANY, INDIVIDUALLY OR COLLECTIVELY, STATES THAT THIS
AFFILIATED PARTY TRANSACTION HAS PASSED THE RELEVANT PROCEDURES TO ENSURE THAT THE
AFFILIATED PARTY TRANSACTION IS CONDUCTED IN ACCORDANCE WITH THE APPLICABLE
BUSINESS PRACTICE.




                                         PT INDIKA ENERGY TBK.

                                              Line of Business
 Trading, Construction, Real Estate, Mining and Excavation, Shipping, Procurement of Electricity, and Service
                           Domiciled in South Jakarta, DKI Jakarta, Indonesia

                                                    Office
                                            Graha Mitra 11th Floor
                                      Jl. Jenderal Gatot Subroto Kav.21
                                           Jakarta 12930, Indonesia
                                Telp. +6221 25579888 Fax. +6221 25579800
                                  corporate.secretary@indikaenergy.co.id
                                            www.indikaenergy.co.id



                      This Disclosure of Information is issued in Jakarta on 2 July 2024
Page 2
                               DEFINITION AND ABBREVIATION

Director means the member of Board of Directors serving in the Company as of the date of this
Disclosure of Information.

Rp means Rupiah, the currency of the Republic of Indonesia.

EMB means PT Energi Makmur Buana, a limited liability company established under laws of Republic
of Indonesia and domiciled in South Jakarta and is owned 51% indirectly by the Company.

Public Accounting Firm means Public Accounting Firm Imelda & Rekan (member of the Deloitte Asia
Pacific network and the Deloitte Network).

Disclosure of Information means this Disclosure of Information provided to the shareholders.

Independent Appraiser or KJPP means Public Appraisal Service Firm (Kantor Jasa Penilai Publik)
Iskandar & Rekan.

Commissioner means member of the Board of Commissioners serving in the Company as of the date
of this Disclosure of Information.

Consolidated Financial Statements of the Company means the consolidated financial statement of
the Company for the year ended 31 December 2023, audited by Public Accounting Firm, with partner
Muhammad Irfan, who has provided an unmodified opinion.

MOLHR means Minister of Law and Human Rights of the Republic of Indonesia.

Financial Services Authority or OJK means Financial Services Authority, an independent institution,
which duties and authorities covers regulatory, supervisory, inspection, and investigation within the
sector of Capital Markets, Insurance, Pension Funds, Financial Institution and other Financial Service
Bodies as stipulated in the Law No. 21 of 2011 dated 22 November 2011 (on Financial Services
Authority as the substitute body of Bapepam-LK which came into effect since 31 December 2012).

Company means PT Indika Energy Tbk., domiciled in Graha Mitra, 11th Floor, Jl. Jend. Gatot Subroto
Kav. 21, Jakarta Selatan 12930, a publicly listed company which shares are traded in Indonesia Stock
Exchange, which established and governd under laws of Republic of Indonesia.

POJK 42/2020 means OJK Regulation No. 42/POJK.04/2020 on Affiliated Party Transaction and
Conflict of Interest.

Transactions means transaction as defined in Recitals of this Disclosure of Information.




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                                             RECITALS

The information stated in this Disclosure of Information is conveyed to the shareholders in relation to
the provision of an intercompany loan facility by the Company to EMB in the amount of
Rp72,000,000,000 (seventy-two billion Rupiah) (the "Transaction"). The Loan Agreement between the
companies related to this Transaction was signed by the Company and EMB (the Company and EMB
hereinafter referred to as the "Parties") on 28 June 2024 ("Loan Agreement").
In this case, there is a share ownership relationship between the Company and EMB, in which EMB is
a subsidiary which is indirectly owned 51% by the Company. Because the implementation of this
Transaction is an affiliated transaction that is not excluded based on POJK 42/2020, this Transaction
must use a fairness opinion issued by KJPP as an independent appraiser registered with OJK.


                      DETAILS ON AFFILIATED PARTY TRANSACTION

1.      BACKGROUND, REASON AND BENEFIT OF THE TRANSACTION

        EMB is a subsidiary of the Company engaged in four-wheeled electric vehicles. The main focus
        of EMB is the distribution of four-wheeled electric vehicles and the development of electric
        charging infrastructure in Indonesia.

        To support EMB's business activities, this Transaction was made in order to assist EMB's
        funding needs in accordance with EMB's annual plan and budget. The development of EMB
        business activities is an implementation of the Company's business diversification program,
        especially in the electric vehicle sector, and supports the Company's target of achieving Net
        Zero by 2050.

2.      DATE OF AFFILIATED PARTY TRANSACTION

        The Loan Agreement was signed by the Parties on date 28 June 2024.

3.      OBJECT OF THE AFFILIATED PARTY TRANSACTION

        The object of the affiliated transaction conducted by the Parties is an inter-company loan
        agreement for working capital and financing other operational activities at EMB.

4.      VALUE OF THE AFFILIATED PARTY TRANSACTION

        The Transaction value is Rp72,000,000,000 (seventy-two billion Rupiah).

5.      PARTIES CONDUCTING THE AFFILIATED PARTY TRANSACTION

        (a)     The Company as the Lender

                Brief Summary

                The Company is duly established by virtue of Deed of Establishment No. 31 dated 19
                October 2000, drawn up before Hasanal Yani Ali Amin, S.H., Notary in Jakarta, the said
                deed has been ratified by the MOLHR by virtue of its Decree No. C-13115
                HT.01.01.Th.2001 dated 18 October 2001. The Articles of Association of the Company
                has been amended several times and lastly amended by the Deed No. 8 dated 22 April
                2022, drawn up before Aryanti Artisari, S.H., M.Kn., Notary in South Jakarta
                Administrative City, such amendment has been approved by the MOLHR by virtue of
                its Decree No. AHU-0034135.AH.01.02.Tahun 2022 dated 20 May 2022 and has been



                                                  3
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registered in the Company Registry No. AHU-0093799.AH.01.11.Tahun 2022 dated 20
May 2022 and the latest composition of Board of Directors and Board of Commissioners
by the virtue of Deed No. 11 dated 19 April 2023, drawn up before Aryanti Artisari,
S.H., M.Kn., Notary in South Jakarta Administrative City, which has been notifed by the
MOLHR by virtue of Letter of Notification Receipt of Amendment of Company Data No.
AHU-AH-01.09-0118385 dated 15 May 2023 and has been registered in the Company
Registry No. AHU-0091075.AH.01.11.Tahun 2023 dated 15 May 2023.

The Company is currently domiciled in South Jakarta with a registered office at Graha
Mitra, 11th Floor, Jl. Jenderal Gatot Subroto Kav. 21, South Jakarta 12930, Indonesia.

Objective and Purpose

The purposes and objectives of the Company are to carry out business in the sectors
of Trading, Construction, Real Estate, Mining and Excavation, Shipping, Procurement
of Electricity, and Services.

Capital and Shareholding Composition

Capital and shareholding composition of the Company are as follows:

Authorized capital                       :   Rp     1,700,000,000,000
Issued and paid-up capital               :   Rp     521,019,200,000
Nominal value per share                  :   Rp     100

The composition of the shareholders of the Company based on the Register of
Shareholders as of 31 May 2024 issued by PT Datindo Entrycom as the Securities
Administration Bureau of the Company is as follows:

                                                             Total Nominal
                                             Number of
             Shareholder Name                                    Value          %
                                              shares
                                                                 (US$)
  PT Indika Inti Investindo                  1,968,882,699       21,499,012   37.84%
  PT Teladan Resources                       1,463,155,591       15,976,777   28.12%
  Agus Lasmono                                  10,156,000          110,897    0.20%
  Indracahya Basuki                              1,403,500           15,325    0.03%
  M. Arsjad Rasjid P. M.                         1,208,000           13,191    0.02%
  Azis Armand                                    1,208,000           13,191    0.02%
  PT Indika Mitra Holdiko                               10             0,11    0,00%
  Community                                  1,756,678,200       18,903,816   33.76%

  Number of outstanding shares               5,202,692,000      56,532,209      100%
  Treasury stocks                                7,500,000         359,945
  Amount of issued and paid-up capital       5,210,192,000      56,892,154      100%


Management and Supervision

The current composition of the Board of Commissioners and Board of Directors of the
Company is as follows:




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      Board of Commissioners
      President Commissioner           : Agus Lasmono
      Vice President Commissioner      : Richard Bruce Ness
      Commissioner                     : Indracahya Basuki
      Independent Commissioner         : Farid Harianto
      Independent Commissioner         : Eko Putro Sandjojo

      Board of Directors
      President Director               : M. Arsjad Rasjid P. M.
      Vice President Director          : Azis Armand
      Director                         : Retina Rosabai
      Director                         : Purbaja Pantja
      Director                         : Kamen Kamenov Palatov

(b)   EMB as Borrower

      Brief Summary

      EMB was established based on the Deed of Establishment No. 16 dated 14 April 2015
      drawn up before Yousfrita, S.H., M.Kn., Notary in Jakarta, which deed has been
      approved by the MOLHR based on Decree No. AHU-2418155.AH.01.01.TAHUN 2015
      dated 15 April 2015, whereby the EMB's articles of association have undergone several
      amendments, and the latest amendments are contained in the Deed No. 19 dated
      17 October 2022 made by Notary Ungke Mulawanti, S.H., M.Kn. Notary in Bekasi
      Regency, West Java, which has been obtained (i) approval from from the MOLHR
      through letter No. AHU-0075337.AH.01.02.Tahun 2022 dated 18 October 2022 , (ii)
      receipt of notification from the MOLHR through letter number AHU-AH.01.03-0303424
      dated 18 October 2022 and (iii) receipt of notification of changes to company data
      number AHU-AH.01.09-0066762 dated 18 October 2022 (“Articles of Association of
      EMB”). The latest change to the Board of Commissioners and the Board of Directors
      composition of EMB is as set forth in Deed No. 94 dated 27 June 2024, made before
      Ungke Mulawanti, S.H., M.Kn., Notary in Bekasi Regency.

      EMB is currently domiciled at Graha Mitra, 10th Floor, Jl. Jenderal Gatot Subroto Kav.
      21, South Jakarta 12930, Indonesia.

      Objective and Purpose

      Objective and Purpose of EMB are to do business in the manufacturing industry,
      including procurement of electricity, gas, steam, water, and cold air, as well as
      wholesale and retail trade, repair and maintenance of cars and motorcycles.

      Capital and Shareholding Composition

      The current capital structure of EMB are as follows:

      Authorized capital                       :   Rp         28,572,000,000
      Issued/Paid-up capital                   :   Rp         28,572,000,000
      Amount per share                         :   Rp              1,000,000

      Shareholders composition of EMB based on the Articles of Association of EMB are as
      follows:




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                                               Number of
                 Name of Shareholder                            Nominal Value (Rp)           %
                                                Shares
              PT Mitra Motor Group                14,572             14,572,000,000           51.00
              PT Buana Auto Sejahtera             14,000             14,000,000,000           49.00
              Total                               28,572             28,572,000,000             100

             Management and Supervision

             Current composition of EMB’s Board of Directors and Board of Commissioners are as
             follows:

             Board of Commissioners
             President Commissioner            : Johanes Ispurnawan
             Commissioner                      : Purbaja Pantja
             Commissioner                      : Albert Aulia Ilyas

             Board of Directors
             President Director                : Alif Sasetyo
             Director                          : Yusa Oktavia

6.   AFFILIATE RELATION OF THE PARTIES CONDUCTED THE AFFILIATED PARTY
     TRANSACTION

     The nature of the Affiliate relation between the Company and EMB is that EMB is a controlled
     company of the Company whose shares are indirectly owned 51% by the Company.


MATERIAL INFORMATION IN RELATION TO THE AFFILIATED PARTY TRANSACTION

1.   Explanation, consideration, and background of the transaction

     The implementation of the Transaction supports the Company's diversification program,
     particularly in the electric vehicle sector. EMB, which is a subsidiary of the Company, intends
     to develop the penetration of four or more wheeled electric vehicles in Indonesia, including but
     not limited to four or more wheeled electric vehicles and electric charging infrastructure.

     EMB funding through this Transaction is carried out by utilizing the Company's internal liquidity.
     The use of this Transaction is for working capital and other operational activities at EMB.

2.   Effect of transaction to financial condition

     By carrying out this Transaction, the Company optimizes its internal liquidity. The following is
     an analysis of the Transaction on the Company's financial condition:

     (a) Analysis to the Consolidated Financial Statements of the Company

         The proforma (loss) of the Company's net profit has not changed in connection with the
         Transaction.

         Overall, the proforma of the Company's assets, liabilities, and equity after the Transaction
         has not changed.

     (b) Analysis on Impact to the Company’s Consolidated Financial Statements with or without
         the Transaction



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            Based on the projected profit and loss, the calculation of the value-added contribution to
            the Company's profit is as follows:

            With the transaction, the contribution of added value contribution to revenue during 2024 –
            2028 amounts to US$167,451 and the Company's EBITDA, EBIT, EBT, and EAT profits
            are US$15,605, US$15,605, US$15,605, and US$15,550, respectively. This transaction
            will provide the Company with increased revenue and profit, benefiting the overall financial
            performance.

            Liquidity Impact Analysis
                                    Historical                           Projection
               Description
                                     2023            2024       2025          2026     2027       2028
            After/With         Proforma
            Transaction
             -CR                       151.06%        95.06%   102.37%      138.53%    174.69%   211.39%
            Before/Without     Historical
            Transaction
             -CR                       151.06%        94.89%   101.80%      137.54%    173.59%   210.13%



                                  Historical                              Projection
              Description
                                   2023              2024       2025         2026      2027      2028
            After/With        Proforma
            Transaction
             -DER                  126.06%           89.73%     53.62%       39.05%    35.54%    32.40%
             -DAR                   55.76%           47.29%     34.91%       28.08%    26.22%    24.47%
            Before/Without Historical
            Transaction
             -DER                  126.06%           89.80%     53.64%       39.04%    35.48%    32.36%
             -DAR                   55.76%           47.31%     34.91%       28.08%    26.19%    24.45%
            Industry Average
             -DER                   58.65%
             -DAR                   34.88%




3.      Summary of the Transaction

             Parties                             :   1. The Company as the Lender.
                                                     2. EMB as the Borrower.
             Amount of Facility                  :   Rp72,000,000,000
             Tenor                               :   5 years
             Use of Proceeds                     :   Working capital and other operational activities of EMB
             Interest                            :   8.4% per annum, payable annually on 31 December
             Repayment                           :   At the end of the tenor, with the option of early
                                                     repayment



     SUMMARY OF VALUER REPORT IN RELATION TO FAIRNESS TO THE OBJECT OF
                              TRANSACTION

1.      Identity of the Valuer

        KJPP is a consultant, business and property valuer, who has obtained business license from
        Ministry of Finance of the Republic of Indonesia under Decree of the Finance Ministry of the
        Republic of Indonesia No. 772/KM.1/2013 dated 12 November 2013, and registered as Profesi
        Penunjang Pasar Modal in OJK under letter No. S-774/PM.25/2013 dated 27 November 2013
        under Surat Tanda Terdaftar Profesi Penunjang Pasar Modal No. STTD.PPB-43/PM.223/2021



                                                         7
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     dated 22 September 2021, to prepare an independent Fairness Opinion (as defined in Object
     to the Fairness Opinion as below).

2.   Summary of Valuation

     (a)   Party

            i. The Company as lender; and
           ii. EMB as borrower.

     (b)   Object of Fairness Opinion

           The object of the fairness analysis is the proposed intercompany loan transaction from
           the Company to EMB in Rupiah, where the Company is the indirect owner of 51% of the
           shares in EMB (hereinafter referred to as the "Transaction Plan" in the Fairness Opinion
           Report).

     (c)   Objective and Purpose of the Proposed Transaction

           The assessment conducted by KJPP aims to provide an opinion on the fairness of the
           Proposed Transaction, namely the plan to provide intercompany loan facility from the
           Company to EMB in Rupiah, where the Company is the indirect owner of 51% of EMB,
           as defined in this report to comply with OJK regulation in the capital market sector, and
           not for taxation, banking purpose and not for other forms of transaction.

     (d)   Valuation Date

           Valuation is conducted as per 31 December 2023.

     (e)   Assumption and Limiting Conditions

           a.   This Fairness Opinion Report is a non-disclaimer opinion in which KJPP has
                conducted a review of the legal status of the documents used in the appraisal
                process, data and information obtained from the Company's management or other
                reliable resources.
           b.   This Fairness Opinion Report has been prepared using adjusted financial
                projections that reflect the fairness of financial projections made by management
                with their fiduciary duty.
           c.   KJPP is responsible for opinions, the implementation of assessments, and the
                fairness of financial projections.
           d.   KJPP is responsible for opinion in fairness opinion report, and this fairness opinion
                report is publicly available, unless there is confidential information which may affect
                the Company’s operational activity.
           e.   KJPP has obtained information on the legal status of the object of the fairness object
                from the Company.
           f.   Assumptions and other Limiting Conditions disclosed in the report.

     (f)   Approach and Procedure of Fairness Opinion

           In assessing fairness of the proposed Transaction, KJPP is using analysis method as
           follows:

           a.   Perform analysis on Proposed Transaction.
           b.   Conduct a qualitative analysis of the Proposed Transaction.
           c.   Conduct a quantitative analysis of the Proposed Transaction.



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              d.   Perform analysis of guarantees related to the Proposed Transaction.
              e.   Perform analysis of the fairness of the value of the Proposed Transaction.
              f.   Perform analysis on other relevant factors.

      (g)     Analysis on Proposed Transaction

              The amount of the loan facility from the object of the Proposed Transaction in the form of
              providing a loan facility to EMB by the Company can be repaid at maturity, so it can be
              concluded that the amount of the loan facility from the object of the Proposed Transaction
              is fair.
              The results of the analysis of the interest rate on the loan facility from the Company as
              the creditor charged to EMB for the working capital loan facility are still within the range
              of interest rates in the market, so it can be concluded that the interest rate on the loan
              facility charged by the Company to EMB is fair.
              The results of an analysis of the financial impact of the Proposed Transaction to be
              carried out on the interests of shareholders conclude that the implementation of the
              Proposed Transaction will increase revenue and profits, thereby adding value to the
              Company, hence aligns with the interests of shareholders.
              The results of the analysis of business considerations used by the Company’s
              management related to the Proposed Transaction to be carried out for the interests of
              shareholders are to support the Company's diversification program, especially in the
              electric vehicle sector through EMB in accordance with the interests of shareholders.
              Based on the conclusions from the results of the above analysis, KJPP is of the opinion
              that the transaction is fair.

      (h)     Summary

              Based on fairness analysis of the Proposed Transaction as reflected in Fairness Opinion
              Report No. 00185/2.0118-00/BS/05/0520/1/VI/2024 dated 27 June 2024, KJPP is on the
              opinion that the Proposed Transaction is FAIR.


                                  ADDITIONAL INFORMATION

For further information, please send your request to the Company’s address as follows:

                                        PT Indika Energy Tbk.
                                         Graha Mitra 11th Floor
                                  Jl. Jenderal Gatot Subroto Kav.21
                                       Jakarta 12930, Indonesia
                            Telp. +6221 25579888 Fax. +6221 25579800
                           E-Mail: corporate.secretary@indikaenergy.co.id
                                        www.indikaenergy.co.id




                                                   9

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Names mentioned 31 people and organisations named in the text · linked when the evidence is strong

linked org INDIKA ENERGY TBK. p.1 ×8
linked person Agus Lasmono p.4 ×2
linked person Indracahya Basuki p.4 ×2
linked person Richard Bruce Ness p.5
linked person Farid Harianto p.5
linked person Eko Putro Sandjojo p.5
linked person Retina Rosabai p.5
linked person Purbaja Pantja p.5 ×2
linked person Kamen Kamenov p.5
linked person Johanes Ispurnawan p.6
possible person Gatot Subroto p.1 ×5
possible org PT Indika Inti Investindo p.4
possible org PT Teladan Resources p.4
possible person M. Arsjad Rasjid P. M. p.4 ×2
unresolved org PT Energi Makmur Buana p.2
unresolved org Public Accounting Firm Imelda & Rekan p.2
unresolved org Iskandar & Rekan p.2
unresolved org Minister of Law and Human Rights p.2
unresolved org Financial Services Authority p.2 ×3
unresolved org Bapepam-LK p.2 ×2
unresolved org Indonesia Stock Exchange p.2
unresolved person Hasanal Yani Ali Amin · Notaris p.3
unresolved person Aryanti Artisari · Notaris p.3 ×3
unresolved org PT Datindo Entrycom p.4
unresolved org PT Indika Mitra Holdiko p.4
unresolved — Treasury stocks p.4
unresolved person Yousfrita · Notaris p.5
unresolved person Notary Ungke Mulawanti · Notaris p.5 ×2
unresolved — Nominal Value (Rp) · Name of Shareholder p.6
unresolved org PT Buana Auto Sejahtera p.6
unresolved org Ministry of Finance p.7

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