5 September 2025 (closed)
Jakarta Composite Index (7,867.35) -18.51 -0.23%
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The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Sales of United Tractors, the largest distributor of heavy equipment in Indonesia and part of the Astra Group, continue to climb in 2017. In fact, the management of United Tractors now expects full-year 2017 sales to exceed their initial forecast. Sara Loebis, Corporate Secretary of United Tractors, said the company has therefore raised its forecast for full-year heavy equipment unit sales from 3,000 to 3,200 units.
It is worrying that of total foreign investment commitments in Indonesia, only about 50 percent becomes actual investment. The other half decides - after initially being interested - not to pursue investment in Indonesia. Although not in all cases, it is believed that Indonesia's difficult investment climate scares away part of the (potential) investment community, specifically bureaucracy (red tape) and the lack of sufficient hard and soft infrastructure.
Indofood Sukses Makmur, one of Indonesia's largest food manufacturing companies, is optimistic that its corporate earnings will improve in the remainder of 2017 on the back of expansion plans as well as the optimization of both its performance and efficiency. In the first half of 2017 Indofood Sukses Makmur's sales rose by a modest 4.6 percent year-on-year to IDR 35.7 (approx. USD $2.7 billion).
Indonesia's Industry Ministry hopes that the recent acquisitions of Karyadibya Mahardika and Surya Mustika Nusantara by Japan Tobacco Inc will have a positive effect on the domestic tobacco industry in Indonesia. The Japan-based cigarette manufacturing company bought 100 percent of the stakes in both companies for a combined price of USD $677 million. The deal is expected to be completed in the fourth quarter of 2017.
The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.
