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Berita Hari Ini Infrastructure

  • State-Controlled Wijaya Karya Posts 29.20 Percent Increase in Net Profit in 2012

    PT Wijaya Karya Tbk, a state-controlled engineering and construction company that is better known to the general public as Wika, posted net profit of IDR 505.12 billion (US $52.07 million) in 2012, a 29.20 percent increase compared to the previous year. Net profit per share rose from IDR 60,59 to IDR 76,01 per share. According to the financial report that was released today, the growth in net profit was mainly due to a 26.79 percent increase in sales.

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  • Heavy Rainfall Causes Floods on Jakarta's Arterial Roads Again

    Floods Jakarta January 2013 Indonesia Investments

    Today, Jakarta was hit again by floods, brought on by heavy rainfall, that reached up to 50 centimeters at some locations and paralyzed part of Jakarta's traffic. Barely two weeks ago, Indonesia's capital city had experienced sustained floods that took the lives of more than 20 people and resulted in losses totaling US $3.3 billion. It might not be Jakarta's last day of floods as the rainy weather conditions are forecast to continue in February.

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  • More Air Traffic Between Indonesia and Singapore Agreed Upon

    Several Indonesian media reported that a deal has been reached between the governments of Singapore and Indonesia that will foresee in an increase of flights (accompanied by a lowering in fares) between Singapore and several big cities in Indonesia (including Jakarta, Surabaya and Medan). The route Jakarta-Singapore is one of the busiest airline routes in Asia, mainly due to business traffic because of (growing) trade and investments flows between the two countries.

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  • Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Indonesian Finance Minister Chatib Basri said that the lower pace of economic growth in China, the world’s second-largest economy, is a major concern for Indonesia as it leads to declining demand for commodities (and thus places downward pressure on commodity prices). As Indonesia is a major commodity exporter - such as coal, crude palm oil, nickel ore and tin - the country feels the impact of weak global demand for commodities. About 60 percent of Indonesia’s exports are commodities, mostly raw ones.

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  • Indonesian August Cement Sales Rise on Property & Infrastructure Projects

    Indonesian August Cement Sales Jump 37% on Property & Infrastructure Projects

    Indonesian cement sales jumped 37.4 percent (year-on-year) to 4.7 million tons in August 2014 due to higher cement demand from Indonesian property and infrastructure developers. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said that the development of smelters, power plants, apartments, hotels, and social housing has been key to improved cement sales last month. However, the 37.4 percentage point growth was also caused by fewer working days in August 2013 as the Lebaran holiday fell in that month.

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  • Infrastructure Indonesia: Tender Soekarno-Hatta Airport Railway Delayed

    Infrastructure Indonesia: Tender Soekarno-Hatta Airport Railway Delayed

    The prequalification tender for the construction of the Soekarno-Hatta International Airport Railway project has been postponed until late October 2014 (from August) as agreements with several stakeholders still need to be finalized. For example, the government is yet to underwrite part of the required investment. Indonesia’s Ministry of Transportation proposes to underwrite IDR 13.5 trillion (USD $2.3 billion) - approximately 49 percent of total required investment for this railway project.

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  • Indonesian Property Stocks Gain Most in First 8 Months of 2014

    Indonesian Property Stocks Gain Most in First 8 Months of 2014

    Property stocks listed on the Indonesia Stock Exchange (IDX) have outperformed all other stocks between the first trading day of 2014 up to 29 August 2014. The IDX’ property sector category rose 37.6 percent in the indicated period, whereas the benchmark stock index (Jakarta Composite Index, abbreviated IHSG) - which involves all stocks traded on the IDX - climbed 18.7 percent over the same period. On the IDX, stocks are placed in ten sectoral categories. The second-best performing sectoral index was finance (+24.5 percent).

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  • Infrastructure in Indonesia: President Yudhoyono Targets Start of 13 Projects

    Infrastructure in Indonesia: President Yudhoyono Aims Start of 13 Projects

    Before the second and final term of Indonesian President Susilo Bambang Yudhoyono has finished on 20 October 2014, the groundbreaking of a total of 13 infrastructure projects should have been conducted. These 13 projects are diverse ranging from toll roads to steam power plants and the extension of the Soekarno-Hatta International Airport located nearby Jakarta. One of these 13 projects - the IDR 9.65 trillion Trans Sulawesi Railway project - has already had its groundbreaking in mid-August 2014.

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  • Joko Widodo’s Political & Economic Agenda: Future of Jokowi’s Indonesia?

    Joko Widodo’s Political & Economic Agenda: Future of Jokowi’s Indonesia?

    When campaigning, presidential candidates will always promise a bright future in order to gain votes. It is particularly easy for a new presidential candidate to promise golden mountains as opposed to the incumbent president who needs to be more cautious making promises as people can point to the (failed) results of his promises during the presidential term. The 2014 Indonesian presidential election was particularly interesting as we saw two new presidential candidates and, thus, the ‘inflation of promises’.

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  • Indonesian Government Tenders Soekarno-Hatta Airport Train Project

    Indonesian Government Tenders Soekarno-Hatta Airport Train Project

    The Indonesian Transportation Ministry will tender the Soekarno-Hatta International Airport train project in August 2014. The project, which will connect one of the world’s busiest airports to the capital city of Jakarta, is offered in the shape of a public-private partnership (PPP) with the Indonesian government. The total of investment required to develop the railway, which will be built partly underground, is estimated at IDR 26 trillion (USD $2.2 billion). The project aims to improve connectivity to the airport.

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  • World Bank Report: How Can Indonesia Avoid the Middle Income Trap?

    World Bank Report: How Can Indonesia Avoid the Middle Income Trap

    On Monday (23/06), the World Bank released its latest analysis regarding the Indonesian economy. In its report, titled ‘Indonesia: Avoiding the Trap’, the World Bank states that Indonesia needs to implement a six reforms in priority areas in order to avoid the so-called middle income trap (referring to the situation where a country gets stuck at a certain income level). Without these critical reforms, the country’s economic growth will slow and may not be able to escape the middle income trap.

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  • Presidential Election Indonesia 2014: 2nd Television Debate Jokowi-Prabowo

    Presidential Election Indonesia 2014: 2nd Television Debate Jokowi-Prabowo

    Sunday evening (15/06), the second debate between Indonesia’s two presidential candidates - Prabowo Subianto and Joko ‘Jokowi’ Widodo - was held. This debate was broadcast live on various Indonesian television stations and - once again - managed to become a trending topic on social media. The debate, the theme of which was ‘development of the economy and social welfare‘, was characterized by a nationalistic and protectionist tone. This tone had already been set by Subianto in the past weeks but now Jokowi also stressed protectionism.

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  • 20 Japanese Food and Beverage Companies Plan to Invest in Indonesia

    20 Japanese Food and Beverage Companies Plan to Invest in Indonesia

    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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