The Today's Headlines section of Indonesia Investments is a daily updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines will cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
State-controlled airline Garuda Indonesia plans to raise capital through a rights issue in semester II of this year. Funds assembled through this issue will be used to expand the company's fleet. In 2011, Garuda issued 30 percent of its shares on the Indonesia Stock Exchange (IHSG) although the House of Representatives (DPR) had in fact approved up to 40 percent. The remaining 10 percent will thus be sold this year.
According to data from Airport Council International, Jakarta's Soekarno-Hatta International Airport was the world's tenth most visited airport in 2012. It is the first time for an Indonesian airport to reach the top ten of most visited airports. However, robust growth in passengers in recent years resulted in overcapacity as the airport was originally built to handle an annual 22 million passengers, but had to cope with 57.7 million passengers in 2012.
Last month, Indonesia's cement sales increased by 15 percent to 4.65 million metric tonnes compared to cement sales in January last year. Strong GDP growth of over six percent annually in recent years has caused a rise in property development and infrastructure projects. Per capita cement consumption in Indonesia - which currently stands at around 200 kilogram per year - is still one of the lowest in Asia.
Indofood Sukses Makmur is reported to purchase 14.95 percent of the issuance of 98 million new shares of Singapore-listed Minzhong Food Corporation Limited (CMFC), a Chinese integrated vegetable processing company. CMFC will issue new shares for a price of SGD $0.915 per share, a 9.93 percent discount compared to the company's share value last Friday. Indofood's purchase is regarded to spur its business development and distribution network.
