The Indonesian Cement Association (ASI) said cement sales in Indonesia grew by 7.6 percent year-on-year (y/y) to 66.4 million tons in full-year 2017. Widodo Santoso, Chairman of ASI, said cement sales rose in all regions across the country with the exception of Kalimantan and Sulawesi. As usual, the biggest cement consumer in 2017 was Java. This island accounted for 57 percent of total cement consumption in Indonesia in 2017, followed by Sumatra with 21 percent.

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In line with the progress in the light rail transit (LRT) project, Indonesian construction company Adhi Karya has used the majority of funds that were assembled through the company's rights issue. Based on a report released by the state-controlled company, it has already used IDR 2.4 trillion (approx. USD $179 million) - or about 88 percent of rights issue proceeds. The rights issue took place on 22 September 2015.

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Indonesian President Joko Widodo opened Silangit International Airport on Friday (24/11). The opening of this international airport is expected to give a boost to tourist arrivals at Lake Toba (in Indonesian: Danau Toba) in North Sumatra. Silangit Airport, which is located about 70 kilometers to the south of Lake Toba, makes it much easier for domestic and foreign tourists to travel to the famous lake.

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After seeing the World Economic Forum (WEF)'s Global Competitiveness Report 2017-2018, Indonesian construction companies gained optimism that the improved ranking of Indonesia in terms of infrastructure competitiveness will translate to more private sector involvement in the country's infrastructure sector.

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The Transportation Ministry of Indonesia hopes to attract up to IDR 40 trillion (approx. USD $3 billion) in investment commitments from (foreign) investors during the fourth Asia-Europe Transport Ministers Meeting, held on Bali between 26-28 September 2017. These investments are needed to finance 12 infrastructure projects in Indonesia that are on offer.

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One of the biggest problems in relation to infrastructure development or construction projects in Indonesia is the land acquisition process. Many projects have been delayed - or cancelled altogether - because local land owners refuse to sell their land to the developers of the project, or, they only agree to sell land at very costly prices.

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Construction of the Warnasari terminal in Cilegon (Banten province) commenced. Indonesian Minister of Transportation Budi Karya Sumadi laid the first stone at the groundbreaking ceremony on Wednesday (30/08). Zamhari Hamid, President Director of port operator Pelabuhan Cilegon Mandiri (PCM), said the Warnasari terminal is designed to have a loading capacity of 12 million tons in the first phase, which estimated to be completed in October 2019, established on a land area of 45 hectares.

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Traditionally, the Indonesian President reveals the government's proposal for next year's state budget one day ahead of the Independence Day celebrations. This time, President Joko Widodo announced a rather ambitious target in terms of economic growth. The central government proposes the GDP growth target figure for 2018 at 5.4 percent year-on-year (y/y). The budget proposal requires approval from the House of Representatives (DPR).

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The Batam Indonesia Free Zone Authority (in Indonesian: Badan Pengusahaan Batam) is currently preparing the Batam-Bintan Bridge project. This could become the area's first public-private partnership (PPP) project. Batam and Bintan are two islands that are located in Indonesia's Riau Islands province, just south of Singapore. While Batam is a major industry hub, Bintan is being promoted as the new Bali.

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During the Susilo Bambang Yudhoyono administration (2004-2014) the Indonesian government presented public-private partnerships (PPPs) as solution to infrastructure development in Indonesia. However, there was limited enthusiasm as investors remained hesitant due to the nation's complex investment climate (including the difficult land acquisition process, regulatory uncertainty and doubts about the economic feasibility of certain projects).

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A total of twenty Japanese companies engaged in the food and beverage industry are exploring investment opportunities in Indonesia. According to research conducted by the Japan International Cooperation Agency (JICA), the food and beverage industry of Indonesia is regarded as a lucrative investment opportunity by these companies. If realized, these foreign direct investments could be worth between USD $400 million to USD $1 billion. However, JICA’s research did not mention any names of the Japanese companies.

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The plantation sector of Indonesia is vulnerable to land disputes. Noor Marzuki, a Director at the National Land Agency (Badan Pertanahan Nasional, or BPN), a non-departmental government institution, said that currently only 30 percent of Indonesia's total plantation estate area has been registered at the BPN. This implies that 70 percent of Indonesian plantation estates are unregistered and thus susceptible to land conflicts. The total size of Indonesia's plantation estate area is 120 million hectares.

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Regarding stock trading on the Indonesia Stock Exchange, investors who focused on property, banking and infrastructure stocks have made the highest profit so far in 2014. Although all sectoral indices that are contained within the benchmark stock index of Indonesia, known as the Jakarta Composite Index (abbreviated IHSG) have shown a good performance, the three aforementioned sectoral indices stand out as the country's top performers. Indonesia's IHSG has risen 16.14 percent between 1 January and 26 May 2014.

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Indonesian cement sales fell 0.4 percent (year-on-year) to 4.52 million tons in April 2014. The decline in cement sales was the result of the country’s legislative election that was held on 9 April 2014 as consumers bought few building materials during the campaign period. Head of the Indonesian Cement Association (ASI) Widodo Santoso stated that a number of large infrastructure projects are currently being tendered and are thus unable to boost domestic cement sales yet.

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As rapid economic development has pushed the percentage of people working in most East Asian countries to among the highest in the world, policy makers should enact labor regulations and social protection policies to benefit all workers, including those in the large informal economy, according to a new World Bank report, East Asia Pacific at Work: Employment, Enterprise and Well-Being (released on 8 May 2014). Current regulations, however, favor salaried, prime-age males at the expense of women and youth.

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The Indonesian government is still studying the feasibility study for the National Capital Integrated Coastal Development (NCICD) masterplan. The NCICD masterplan, a joint project between the governments of Indonesia and the Netherlands, aims to protect the capital city of Jakarta against floods caused by high tides and faciliates sustainable development of Jakarta. The masterplan is developed by a consortium headed by Witteveen+Bos (main contractor) and Grontmij, with subconsultants KuiperCompagnons, Deltares, Ecorys and Triple-A.

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Fitch Ratings, one of the three major global credit rating agencies, said that its latest annual survey on economic prospects and the business climate in Indonesia indicates an optimistic view. Respondents in the survey, mostly CEOs and Division Heads at financial institutions, companies, government and media, were asked 11 questions about the Indonesian economy, reformation and prospects for the next five years. Andrew Steel, Managing Director Head of Asia Pacific Corporate Ratings Group, presented results of the survey.

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Imports of oil will accelerate to 1.6 million barrels per day (bpd) by 2020 if fuels continue to be subsidized by the Indonesian government. This development will seriously burden Indonesia's trade balance (and current account). In 2013, Indonesia posted a trade deficit of USD $12.6 billion in the oil & gas sector. Due to improved performance in the non-oil & gas sector, the overall trade deficit was kept at USD $4.06 billion. Besides placing downward pressure on the rupiah exchange rate, expensive subsidies also burden the state budget.

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Tourism in Indonesia has posted impressive growth rates in recent years. This development is due to the fact that Indonesia has plenty of beautiful sites and cultural traditions to offer to foreign (and domestic) tourists, improved airline accessibility to Indonesia, and enhanced focus on promotional campaigns in foreign countries. Lastly, and not unimportantly, there have been no violent terrorist attacks in recent years. In the 2000s, a vicious terrorist attack always resulted in a temporary drop in foreign tourist arrivals.

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In 2015, Indonesia's Ministry of Public Works will start with the land acquisition process for the construction of the Trans-Sumatra Highway. This highway is a 2,732.2 kilometers-long toll road connecting Banda Aceh in the north of Sumatra to Bandar Lampung in the south through 23 routes that connect ten provinces. The total land area that needs to be acquired is roughly 218,976 million m² and is expected to cost around IDR 15 trillion (USD $1.3 billion). By 2025, construction of the project should be finished.

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