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Berita Hari Ini Infrastructure

  • Infrastructure in Indonesia: Update Jakarta-Surabaya Railway

    The Indonesian government plans to show results of the prefeasibility study for the revitalization of the north coast railroad - that connects Jakarta and Surabaya on the island of Java - to Japan immediately after the study has been completed. Luhut Binsar Pandjaitan, Indonesia's Coordinating Minister for Maritime Affairs, said the government is expecting to start discussing the project in early August 2017.

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  • Mudik Tradition Indonesia: Fewer Idul Fitri Traffic Accidents

    Indonesian police informed that there were less traffic accidents during this year's Idul Fitri exodus compared to preceding years. Idul Fitri, a national week-long holiday, marks the end of the Islamic fasting month (Ramadan) and is a big happening in Indonesia. Ahead of Idul Fitri millions of workers who live in the cities travel to their places of origin to spend some days with their families. Locally, this tradition is known as "mudik" ("going home").

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  • Infrastructure Indonesia: Loan for Jakarta-Bandung Railway Signed

    A large chunk of the costs for the development of Indonesia's first high-speed railway - between the capital city of Jakarta and Bandung - is covered now a consortium of Indonesian and Chinese companies signed a USD $4.5 billion loan with the China Development Bank. This loan should cover about 75 percent of the total (estimated) costs to develop this railway. In 2015 the Indonesian government, rather unexpectedly, awarded the contract for this project to China, sidestepping Japan that thought it would be appointed to establish this railway.

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  • Strukton International Awarded Palmerah Tidal Bridge Project in Indonesia

    Tidal Bridge BV, a joint venture of Strukton International and DEC, has been awarded the contract to construct the Palmerah Tidal Bridge in Indonesia. The Dutch company will build a floating bridge in the Larantuka Strait, located in East Flores in the eastern part of Indonesia. This floating bridge will be linked to (what is set to become) the world's largest tidal power plant. The total duration of the project is estimated at four years with a final contract value of more than USD $550 million. This project is the first Dutch-Indonesian cooperation in the field of waterworks.

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  • Asian Development Bank's Latest Report on the Indonesian Economy

    The Asian Development Bank (ADB) kept its forecasts for economic growth in Indonesia at 5.1 percent (y/y) in 2017 and 5.3 percent (y/y) in 2018, implying it expects the trend of accelerating economic growth in Southeast Asia's largest economy to continue. The Manila-based institution mentions improvement in private investment and trade (namely expectation of rising exports) as main sources for growth of Indonesia's gross domestic product (GDP) in the years ahead.

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  • Airports in Indonesia: Bali's Ngurah Rai World's 3rd-Best Airport

    Airport Councils International, the only worldwide trade representative of the world's airports, considers Bali's I Gusti Ngurah Rai International Airport the world's third-best airport in the category "airports with an annual passenger capacity of 15-25 million people in 2016". The airport's score improved from 4.74 in the 2015 edition to 4.92 in the latest edition. To continue improving its performance, the airport operator will continue to invest in airport facilities as well as supporting infrastructure.

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  • Update 3rd Runway at Indonesia's Soekarno-Hatta Airport

    State-owned airport services company Angkasa Pura II, which operates airports in the western part of Indonesia, says construction of the third runway of the Soekarno-Hatta International Airport (located just outside Jakarta) will start in April 2017. This new runway, which requires about IDR 2 trillion (approx. USD $150 million) worth of investment, is expected to be ready for use in mid-2018. Soekarno-Hatta International Airport, the country's main port of entrance, is target of an ambitious expansion and renovation program with the aim to boost competitiveness by raising the airport's passenger capacity and flight frequency.

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  • Infrastructure Development Indonesia: New Funding Schemes Required

    The government of Indonesia needs to be more aggressive and innovative to find new sources to fund its ambitious infrastructure development program. To achieve its infrastructure targets, the government will need to find ways to entice the private sector because public funds are limited. So far, however, the private sector is hesitant to engage in capital-intensive and long-term investment in a country where the investment climate is not optimal.

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  • Weak Weather Conditions Undermine Indonesia's January Cement Sales

    Cement consumption in Indonesia fell to 5.27 million tons in January 2017, down 2.3 percent year-on-year (y/y) from the same month one year ago. This decline was blamed on the intense rainfall in the nation's regions that managed to obstruct progress with various projects. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said the decline in cement demand was seen in nearly all regions, including Sumatra, Java, Kalimantan, and Nusa Tenggara.

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Artikel Terbaru Infrastructure

  • Steel Industry in Indonesia: Challenges and Opportunities

    Domestic steel sales in Indonesia are expected to rise 6 percent y/y to 15.1 million tons in 2014. Meanwhile, the global average steel price has been USD $536 per ton this year, implying that the market value of Indonesian steel sales is to reach USD $8 billion this year. In recent years, the country’s steel sales have been rising on development of infrastructure, defense industry, and manufacturing. The sales are expected to continue rising in the years ahead due to commitment of the government to boost infrastructure development.

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  • 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 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

    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

    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

    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?

    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

    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?

    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

    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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