Cipta Kridatama, one of Indonesia leading mining contractor companies, plans to conduct an initial public offering on the Indonesia Stock Exchange (IDX) after 2015. The company believes that this corporate action will enhance transparency and good corporate management. Chief Executive officer (CEO) Irfan Setiaputri said that the company is eager to conduct the IPO but needs to wait until after 2015 in order to be fully prepared for this step. The company is currently busy expanding into other business sectors.

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With continued economic growth in Indonesia, thus giving rise to higher per capita GDP, the property market is still expanding rapidly, particularly in the bigger cities such as Jakarta (the political and economic center of Indonesia). By 2015, 46 new property projects will add nearly 25,000 new apartments in Jakarta (‘strata title’, a term that refers to the multi-level apartment blocks and horizontal subdivisions with shared areas) with a combined value of about IDR 23 trillion (almost USD $2 billion).

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Penjualan semen di Indonesia turun 25 persen menjadi 3.7 juta ton pada Juli 2014 dari 5 juta ton pada Juli 2013. Penurunan tajam ini disebabkan oleh libur Lebaran (atau Idul Fitri di mana umat Islam merayakan berakhir bulan puasa), waktu banyak kegiatan usaha bisnis dihentikan sementara, serta pemilu presiden yang diadakan juga pada bulan Juli 2014. Melambatnya penjualan semen juga disebabkan oleh menurunnya pertumbuhan ekonomi (5.12 persen yoy pada kwartal kedua 2014). Penjualan semen merupakan indikator utama kegiatan konstruksi (pembangunan infrastruktur dan properti).

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The Idul Fitri celebrations (also known as Lebaran) in Indonesia appear to take place in a safe and orderly manner. Idul Fitri is an important religious holiday for Muslims as it stresses the importance of unity for the Islamic community, and marks the end of the holy fasting month (Ramadan). Business comes to a near stand-still in Indonesia during these days, and Jakarta, the political and economic center of Indonesia, has become empty after millions of people went back to their hometowns ahead of Idul Fitri (this is known as the annual mudik tradition).

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The World Bank revised down its forecast for economic growth in Indonesia for the year 2014. In the July 2014 edition of the Indonesia Economic Quarterly, the institution projects economic growth in Southeast Asia’s largest economy at 5.2 percent, slightly down from its previous forecast of 5.3 percent. The downgrade is the result of a weaker outlook for commodity prices and tighter credit conditions. Moreover, the growing fiscal deficit contributes to the challenges that will be faced by the new government (which will be inaugurated in October 2014).

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The Governor of Indonesia’s central bank (Bank Indonesia), Agus Martowardojo, said that the Indonesian economy can grow more than six percent provided that several important structural reforms will be implemented in order to avoid the middle income trap. This trap occurs when rapidly growing economies stagnate at middle-income levels for many years, thereby failing to reach a high income level (as has been the case with Brazil, Mexico, South Africa and other middle income countries from the early 1980s to the mid-2000s).

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Doddy Riyadi, official at the Indonesian Economic Development Committee (KP3EI), said that logistics costs in Indonesia are expected to have fallen three to four percent by the year 2015. Currently, Indonesia is characterized by relatively high logistics costs, thereby reducing the competitiveness of Indonesian products on the international market (curbing exports) as well as, generally, causing a less attractive investment climate. The primary cause of high logistics costs is Indonesia’s lack of quality and quantity of infrastructure.

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The central bank of Indonesia (Bank Indonesia) announced that its foreign exchanges reserves had risen to USD $107.0 billion by the end of May 2014, up from USD $105.6 billion at the end of the previous month. This increase primarily stemmed from government oil and gas export earnings as well as an influx of foreign portfolio capital into Southeast Asia's largest economy, which reflects the positive perception of international investors with regard to the economic fundamentals of Indonesia.

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One of Indonesia's main fiscal problems is the ever increasing amount of public funds spent on energy subsidies (these include fuels and electricity subsidies). These subsidies aim to support the poorer segments of Indonesian society but several studies conclude that it are in fact the middle class and elite segments that benefit the most of these energy subsidies. Furthermore, by keeping energy prices artificially low, the government distorts the economy by creating a more-or-less 'false economy'.

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The Indian rupee depreciated 0.4 percent to 58.7150 per US dollar on Monday (26/05), the most in a month on speculation that India's central bank intervened to deliberately weaken the currency after it had gained 2.8 percent against the US dollar this month (becoming the best performing Asian currency). The rupee gained due to optimism about the new government's ability to boost the economy (which has slowed down considerably in recent years). However, the central bank expects that a too strong rupee will hurt the country's exports.

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Based on the latest reports - and contrary to earlier plans - the Indonesian government will not postpone the development of 15,200 MW of power projects. Earlier the government said it wanted to delay various power projects in an effort to curtail imports, thus improve the country's current account balance and ease heavy pressures on the rupiah exchange rate.

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If we take a look at Indonesia's central government spending in the first four months of 2018, then we detect something interesting. Overall, government spending has grown in the January-April 2018 period (compared to the same period one year earlier). However, growth in government spending is led by rising social assistance spending and rising subsidy spending. Meanwhile, growth of infrastructure spending has been much less robust. Does this mean that the Indonesian government has curtailed infrastructure development spending in order to relieve rising pressures on the budget deficit?

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The tourism industry of Indonesia is one of the most important industries in terms of the nation's foreign exchange earnings. However, compared to its neighboring countries - specifically Singapore, Malaysia and Thailand - Indonesia lags behind in terms of foreign visitor arrivals. This "failure" is partly attributed to the weak state of Indonesia's infrastructure. This includes the lack of enough airports or the lack of enough aircraft and passenger handling capacity at existing airports.

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Cement sales were good in January 2018 for Indonesian cement manufacturers, growth that is attributed to rising cement demand on the back of the government-led infrastructure development program, particularly the construction of toll roads. Indonesia's cement consumption rose 9.9 percent year-on-year (y/y) to 5.68 million tons in January 2018.

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The completion of the high-speed Jakarta-Bandung railway in West Java is expected to see a delay due to land acquisition and licensing troubles. The USD $5.9 billion project is now expected to be completed in 2020, one year later than originally planned.

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Revenue and profit of Wijaya Karya (Wika), one of Indonesia's biggest construction companies, is partly dependent on developments surrounding the Jakarta-Bandung high-speed railway project. Earlier this month, Indonesian President Joko Widodo ordered an evaluation of this railway project, which saw groundbreaking in 2016 but has shown limited progress ever since.

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It was a solid year for the Indonesian economy. The macroeconomic fundamentals of the nation have strengthened due to the hard work of the Indonesian government under the leadership of President Joko Widodo. However, there is no room for complacency as there remain major bottlenecks, while legislative and presidential elections - in which voters can approve or disapprove Widodo's performance - are scheduled for 2019.

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Last week Indonesian President Joko Widodo inaugurated the 41.7-kilometer Parbarakan-Sei Rampah section of the Medan-Kualanamu-Tebing Tinggi toll road in North Sumatra. This Parbarakan-Sei Rampah section is now the longest piece of toll road on the island of Sumatra and will boost connectivity in the province of North Sumatra.

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In its latest report, the World Bank stated that Indonesia's macroeconomic fundamentals are solid and have been strengthening amid the central government's eagerness to implement critical structural reforms, while investment growth rose to the highest levels since the last quarter of 2015 (mainly investment in buildings and structures).

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Indonesian Minister of Home Affairs, Tjahjo Kumolo, made a statement in support of the Lippo Group's controversial Meikarta integrated township project. At the Indonesia Future City & REI Mega Expo 2017 on Thursday (14/09) Kumolo said Indonesia's regional governments should not unnecessarily obstruct private projects that help to develop the regional economy. He cited Meikarta as an example.

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