Indonesian Listed State-Owned Enterprises' Financial Results Q1-2014 (in billion rupiah):

                    Revenue                   Net Profit
 Company  Q1-2014  Q1-2013
% Growth  Q1-2014
% Growth
 1. Bank Rakyat Indonesia   12,401    9,918     +25.0    5,934    5,084     +16.7
 2. Bank Mandiri    8,980    7,455     +20.5    4,924    4,303     +14.4
 3. Telekomunikasi Indonesia   21,250   19,547      +8.7    3,649    3,477      +5.0
 4. Bank Negara Indonesia    5,289    4,291     +23.3    2,392    2,069     +15.6
 5. Semen Indonesia    6,177    5,543     +11.4    1,302    1,236      +5.3
 6. Tambang Batubara Bukit A    3,093    2,777     +11.4    536.3    493.1      +8.8
 7. Jasa Marga    1,523    1,372     +11.0    376.0    322.2     +16.7
 8. Bank Tabungan Negara    1,442    1,275     +13.1    341.1    333.7      +2.2
 9. Wijaya Karya    2,791    2,627      +6.2    167.5    156.8      +6.8
10. Semen Baturaja    284.2    222.5     +27.7     75.6     47.6     +58.8

Source: Investor Daily

The presence of four state-controlled banks within the top ten of most profitable listed Indonesian SOEs in Q1-2014 indicates that Indonesia's financial sector is still booming although at a lower pace compared to previous years as the central bank has raised borrowing costs last year in order to combat high inflation and limit the country's wide current account deficit (thus indirectly supporting the Indonesian rupiah exchange rate which had depreciated more than 20 percent against the US dollar in 2013). Therefore, the four banks - Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Tabungan Negara - have not been able to post 20+ percentage growth rates (year-on-year) of net profit.

While net profit growth in Indonesia's financial sector is slowing, the country's construction sector has a more promising outlook as the new government (which will be inaugurated in October 2014) is expected to put more emphasis on infrastructure projects. Currently, Indonesia lacks adequate quality and quantity of infrastructure, giving rise to higher logistics costs and thereby making the country less competitive globally. State-owned or partly state-controlled companies, such as Wijaya Karya, Jasa Marga, Adhi Karya, Waskita Karya as well as Pembangunan Perumahan (PP), are usually assigned to government-initiated infrastructure projects and thus these companies are expected to secure more profits this year and beyond. In the third and fourth quarters of 2014, the government is expected to announce the winners of tenders for various infrastructure projects.

The positive prospects of Indonesia's construction sector also impact positively on the state-controlled cement producers (Semen Indonesia and Semen Baturaja) as there will be higher demand for cement. However, these companies are negatively affected by slowing growth in the country's real estate and property sector after the central bank raised borrowing costs and tightened credit disbursement for property purchases.

Listed government-controlled enterprises that made a loss in the first quarter of 2014 were Garuda Indonesia, Krakatau Steel, and Indofarma. Some notable listed SOEs that have not released Q1-2014 financial results yet include Perusahaan Gas Negara (PGN), Aneka Tambang and Timah.