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Wijaya Karya Beton is one of Indonesia's leading precast concrete producers. The company, which is a subsidiary of state-controlled construction company Wijaya Karya (Wika), manufactures a product line that includes pre-stressed concrete piles, bridge girder products, pipes, railway, and sleepers. After a bleak 2015 Wika Beton is expected to post rising net profit and revenue in the years ahead supported by a capital injection into its parent company.
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Packaged food producer Indofood CBP Sukses Makmur, subsidiary of Indofood Sukses Makmur, is expected to see rising profit in the second half of 2016 on the back of lower prices of raw materials (particularly wheat flour, the key ingredient for instant noodles), the stronger rupiah and improved purchasing power of Indonesia's consumer force. Meanwhile, the company may manage to curb losses that originate from the beverage segment. Indofood CBP Sukses Makmur has 6 business segments: noodles, dairy, snack foods, food seasoning, nutrition and special food products, and beverages.
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Growth in the fast moving consumer goods sector will surely boost overall growth and the financial performance of Indofood Sukses Makmur, one of Indonesia's largest food manufacturing firms. Moreover, the stronger rupiah and lower costs of raw materials will also impact positively on the company's earnings. Indofood Sukses Makmur, part of the Salim Group, offers a wide variety of food and beverage products to Indonesian consumers ranging from instant noodles, dairy, snacks, food seasoning, and nutrition to special foods and beverages.
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Indonesia's cement exports are targeted to reach 1.5 million tons in 2016, up 50 percent (y/y) from the realization of approximately 1 million tons in the preceding year. Up to the end of July 2016 Indonesian cement exports had already risen by 63 percent (y/y) this year. Although coming from a low base, rapidly increasing cement exports are highly welcome to offset the nation's rising cement oversupply. Due to the arrival of new cement producers and production expansion of existing cement players, while domestic cement consumption remains bleak, there occurred a big oversupply.
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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.