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Berita Hari Ini Infrastructure

  • Third Runway Soekarno-Hatta International Airport to be Completed in 2017?

    Angkasa Pura II, the state-owned airport services company that operates airports in the western part of Indonesia, says the 3rd runway of the Soekarno-Hatta International Airport, located just outside Indonesia's capital city of Jakarta, will be finished in late-2017. This third runway, expected to cost IDR 4 trillion (USD $300 million), is part of a big expansion and renovation plan aimed at raising the airport's passenger capacity and flight frequency. Construction of the runway should start in early 2017 provided the land acquisition process has been completed.

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  • Indonesia Investments' Newsletter of 27 March 2016 Released

    On 27 March 2016, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as infrastructure development, the current account deficit, updates on various sectors including property and banking, the controversial decision regarding the Masela LNG plant, land reclamation, and much more.

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  • Infrastructure Development Indonesia: Balikpapan-Samarinda Toll Road Project

    In its bid to enhance connectivity across the Indonesian archipelago, the government of Indonesia is eager to boost toll road development. Enhanced connectivity is key to curtail the nation's high logistics costs hence improving the competitiveness of domestic businesses while also making the investment climate more attractive. Besides business interests, enhanced infrastructure development is also important from a social point of view (for example, people's access to healthcare is improved). In this column we take a look at the developments of the Balikpapan-Samarinda toll road on the island of Kalimantan.

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  • Growing Economic Activity in Indonesia, Higher Current Account Deficit

    Indonesia's current account deficit is expected to rise to USD $26 billion, or 2.6 percent of the nation's gross domestic product (GDP), in 2016. This increase is expected because rising investment and infrastructure development in Indonesia will require more imports from abroad. In 2015 Indonesia's current account deficit was recorded at USD $17.8 billion (2.06 percent of GDP), improving from a USD $27.5 billion deficit (3.09 percent of GDP) in the preceding year (when Indonesia touched a record high current account deficit, and which seriously undermined investors' confidence in the nation's assets).

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  • February Car Sales Indonesia Fall slightly, Cause for Optimism?

    An improvement has been detected in Indonesia's car sales. According to the latest data from the Indonesian Automotive Industry Association (Gaikindo) car sales in Indonesia totaled 88,250 units in February 2016. Although this figure is 0.6 percent down from sales in the same month one year earlier, the percentage fall is the slowest since August 2014. Noegardjito, Secretary of Gaikindo, said this limited decline came on the back of Indonesia's improving economy. However, February was still the 18th consecutive month of contracting car sales in Southeast Asia's largest economy.

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  • Steel Imports from China into Indonesia Surged in 2015

    Indonesia's steel and iron producers urge the government to limit imports of steel into Indonesia as these imports are a burden on the domestic steel industry. Data from the Indonesian Iron and Steel Industry Association (IISIA) show that steel imports from China - the world's largest steel producer - into Indonesia jumped 94 percent year-on-year (y/y) to 3 million tons in 2015. This surge is particularly caused by foreign contractors working on infrastructure projects in Indonesia.

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  • Jokowi Opens Bonded Logistics Centers to Improve Indonesia's Competitiveness

    Indonesian President Joko Widodo inaugurated 11 bonded logistics centers on Thursday (10/03) as part of Indonesia's second economic stimulus package that was unveiled on 30 September 2015. These bonded logistics centers aim to curtail the country's notoriously high logistics costs which makes businesses in Indonesia less competitive and the general business climate in Southeast Asia's largest economy less attractive. The official opening ceremony for the 11 centers (mostly located on the island of Java) was held in Jakarta.

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  • Cement Sales in Indonesia Rise in February, Export in Focus

    Cement sales in Indonesia rose 3 percent year-on-year (y/y) to 4.45 million tons in February 2016 from the same month one year earlier. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said Indonesia's rising cement sales were caused by the ongoing development of infrastructure projects across the archipelago. Three regions showed a marked increase in cement sales last month: Sumatra (+16.5 percent y/y to 2.13 million tons), Sulawesi (+33 percent y/y to 841,000 tons) and the Moluccas & Papua (+31 percent y/y to 125,000 tons).

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  • FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    Japanese companies remain committed to invest in Indonesia - particularly into infrastructure, power and manufacturing - according to the Kansai Economic Federation (Kankeiren), one of Japan's private, non-profit representative economic organizations. Kankeiren Chairman Shosuke Mouri met Indonesia's Chief Economics Minister Darmin Nasution on Monday (07/03) in Jakarta. Japan is one of the biggest investors in Indonesia. During the period 2010-2015 the country invested a combined total of USD $14.9 billion in Indonesia.

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  • Dam Construction in Indonesia: 8 Dams to Be Tendered

    Indonesia's Ministry of Public Works and Housing targets to complete the tender process for eight dams, worth a combined IDR 8.60 trillion (approx. USD $637 million) - all national strategic projects - by June 2016. Imam Santoso, Director of Dams at the Public Works Ministry, said one dam has already been tendered last week: the IDR 1.04 trillion Kuwil Kawangkoan Dam in North Sulawesi. Next week the government is set to tender the Leuwikeris Dam in West Java. The central government aims to tender a new dam project every two weeks up to June 2016.

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Artikel Terbaru Infrastructure

  • Waskita Karya: Right Company, Right Time to Focus on Toll Road Construction

    Construction company Waskita Karya is expected to be among the main beneficiaries of the multi-year Trans-Java toll road project. The company, in which the Indonesian government owns a 68 percent stake, has been assigned to develop six (out of a total of 19) sections of the Trans-Java toll road including the sections Pemalang-Batang, Solo-Ngawi and Ngawi-Kertosono. Waskita Karya's participation in this project will not only strengthen the company's investment portfolio in Indonesia's toll road sector but will also imply rising precast concrete sales of its subsidiary Waskita Beton Precast (established in 2013).

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  • Steel Price Rises but China and Other Steel Producing Nations Divided

    The price of steel has surged 20 percent to USD $365 per ton in April 2016 from USD $305 per ton at the start of the year. The primary reason for the higher steel price is China's plan to curtail the country's installed steel production capacity by a further 150 million tons over the next five years. In recent years the steel price has dropped significantly due to the global oversupply, mainly originating from the chronic steel oversupply in China where domestic demand declined amid the nation's economic slowdown.

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  • Infrastructure Projects Indonesia: Semanggi Flyover Jakarta

    Construction of a new big infrastructure project in Indonesia has started: the Semanggi flyover in Jakarta's central business district. The project involves two additional elevated ramp roads above the existing intersection at Semanggi (hence creating an interchange). Improving the existing road infrastructure at this location is required in order to ease severe traffic congestion that occurs on working days. The project, which requires high-end technology, kicked off on Friday (08/04) and is scheduled to be completed in August 2017, ahead of the 2018 Asian Games.

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  • Construction of Indonesia's Jakarta-Bandung Railway Should Start Soon

    After experiencing a two-month delay due to permitting and concession trouble, the construction of the Jakarta-Bandung fast train should be able to commence soon. Indonesian Transportation Minister Ignasius Jonan confirmed on Wednesday (16/03) that his ministry agreed to grant a 50-year concession period to the Chinese-Indonesian consortium named Kereta Cepat Indonesia Cina (KCIC). The granting of this concession means that KCIC should be able to secure the necessary construction and business permits soon. The USD $5.1 billion Jakarta-Bandung railway (in West Java) is one of the mega-infrastructure projects of Indonesia.

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  • International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    The International Monetary Fund (IMF) expects Indonesia's economy to expand 4.9 percent year-on-year (y/y) in 2016, slightly up from a 4.8 percentage point (y/y) growth of gross domestic product (GDP) in 2015. On Tuesday (15/03) Luis Breuer, IMF Mission Chief for Indonesia, said the Washington-based lender projects limited growth (+0.1 percent) of Indonesia's private consumption this year. Regarding growth of investment and government spending in 2016, the IMF holds a more positive view. On the same day, the World Bank cut its forecast for Indonesia's 2016 GDP growth by 0.2 percent to 5.1 percent.

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  • Steel Pipe Industry of Indonesia to Thrive on Infrastructure Boom

    With Indonesia's construction and infrastructure sectors expected to grow in 2016, backed by government support, Indonesia-based steel pipe manufacturer Steel Pipe Industry of Indonesia should manage to see higher net profit this year. The company, with its factories in Sidoarjo and Surabaya (East Java), has the largest steel pipe production capacity of all steel pipe producers in Indonesia. With its six factories - and 34 production lines - the company's production capacity currently stands at 588,600 metric tons per year.

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  • Seaport Infrastructure Indonesia: Patimban to Replace Cilamaya?

    Indonesia's Ministry of Transportation has completed a feasibility study for the development of the Patimban seaport in West Java. Although there are no official statements made by the Indonesian government, it is expected that the Patimban seaport is the most suitable candidate to replace the Cilamaya port project in Karawang (West Java). This project was cancelled in April 2015 as the location was too closely located to an oil and gas block operated by Pertamina Hulu Energi Offshore North West Java, a unit of state-owned energy company Pertamina.

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  • Cement Industry Update: Semen Indonesia in a Good Position

    As cement sales in Indonesia are expected to rise nearly 10 percent (y/y) to 66.4 million tons in 2016 on the back of government-led infrastructure development, investment growth and accelerating GDP growth, three cement producers are set to benefit. The three market leaders in Indonesia's cement industry that should see higher sales are Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia.

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  • Paket Stimulus ke-8 Indonesia: Pajak Impor, Kilang Minyak & Kebijakan Satu-Peta

    Pada hari Senin (21/12), Pemerintah Indonesia meluncurkan paket stimulus ekonomi ke-8. Paket terbaru ini dari serangkaian paket kebijakan - semuanya bertujuan untuk mendongkrak pertumbuhan ekonomi - mencakup tiga kebijakan. Pertama, menghapuskan pajak impor untuk 21 kategori suku cadang pesawat. Kedua, insentif fiskal dan non-fiskal untuk pengembangan kilang minyak. Ketiga, Pemerintah Pusat akan merampingkan dan menyelaraskan proses akuisisi lahan untuk pembangunan infrastruktur di seluruh negeri menggunakan "kebijakan satu-peta" yang baru.

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  • Bank Central Asia (BCA) to See Slower Credit Growth than State Banks

    Bank Central Asia (BCA), one of the leading commercial banks in Indonesia, is estimated to continue posting growing net profit and rising credit growth in the years ahead despite the persistently sluggish domestic economy. However, contrary to the state-controlled banks - such as Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) - BCA will most likely not see double-digit credit growth in the near future as BCA's customers mostly originate from the private sector. The state-controlled banks, on the other hand, have the advantage of being involved in the government's push for infrastructure development and government spending.

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