Below is a list with tagged columns and company profiles.
Latest Reports Infrastructure
Basuki Hadimuljono, Indonesian Minister of Public Works and Public Housing, said the government continues to push for infrastructure development in the form of toll roads in various regions across Indonesia.
The central bank of Indonesia (Bank Indonesia) believes that the Indonesian government needs to make a more careful selection in terms of infrastructure development projects in order to curtail the big amount of imports that put pressure on the country's current account balance and rupiah exchange rate.
Indonesia managed to rise sharply in the ranks of the World Bank's latest Logistics Performance Index (LPI). In the 2018 edition, which was released on Tuesday (24/07), Indonesia ranked 46th, up from 63rd in the preceding edition (released in 2016).
Indonesia's Transportation Ministry is optimistic that the construction of the Patimban Seaport in Subang (West Java) can commence in June 2018 after the Idul Fitri celebrations have completed. Meanwhile, the port operator tender is scheduled to be opened in July 2018. The USD $3.1 billion Patimban seaport is envisaged to become a key international seaport in Indonesia with a 7.5 million twenty-foot equivalent units (TEU) capacity.
The Indonesian government targets to see 17 toll road projects, all part of the national strategic projects program, being completed before the end of 2019. Two of these projects - (1) the 7.2 km-long Bekasi-Cawang-Kampung Melayu toll road and (2) the 11 km-long Bogor Ring Road - are estimated to be ready for the public before the end of 2018. Combined, the 17 toll road projects cost IDR 105.35 trillion (approx. USD $7.6 billion) and will contribute to improved connectivity in Southeast Asia's largest economy.
The Committee for the Acceleration of Priority Infrastructure Delivery (in Indonesian: Komisi Penyediaan Percepatan Infrastruktur Prioritas, or KPPIP), said 14 projects have been removed from the national strategic projects list. KPPIP Program Director Rainier Haryanto said an evaluation showed that these 14 projects failed to meet specific criteria and can therefore not be started - or reach financial close - before the fourth quarter of 2019.
It has been a while since we last reported on developments surrounding the Palapa Ring project, one of Indonesia's priority infrastructure projects in the 2016-2019 period. The Palapa Ring, which involves an undersea fiber-optic cable network that stretches across 13,000 kilometers as well as an onshore network of nearly 22,000 kilometers, will provide fast broadband Internet to Indonesians in both the urban and rural areas across the country. Once completed, all Indonesian districts (kabupaten) are connected through fiber-optic communication.
Shares of listed construction company Waskita Karya are under pressure on Wednesday (21/02) after the Indonesian government decided to temporary halt all elevated construction projects that involve girder installations (which include projects such as flyover toll roads, bridge construction, and the light rail transit, or LRT).
The International Monetary Fund (IMF) sees room for Indonesia's tax ratio to rise up to 15 percent of gross domestic product (GDP). Luis Breuer, IMF Mission Chief for Indonesia, expects to see an improvement in Indonesia's tax ratio - from the weak level of 10 percent of GDP in 2017 - on the back of Indonesia's improving economic growth. Accelerating economic growth should boost tax revenue realization.
After a good year in 2017, sales of commercial vehicles in Indonesia are expected to accelerate further in 2018 on the back of accelerating economic growth, growing activity in the mining and agriculture sectors, and the Gaikindo Indonesia International Commercial Vehicle Expo (to be held between 1-4 March 2018 in the Jakarta Convention Center).
Latest Columns Infrastructure
The heavily subsidized fuel price of Indonesia is likely to be raised next month according to Indonesian media sources. Various high officials, including Economic minister Hatta Rajasa, discussed the possibility to raise the fuel price from IDR 4,500 (USD $0.46) to IDR 6,500 (USD $0.67) per liter starting from May. This increase will only apply to private passenger cars, and not to motorcycles and public transportation. However, president Susilo Bambang Yudhoyono has not made up his mind yet.
Last week, I discussed the composition of the ten largest Indonesian companies by market capitalization. For this week's column I have decided to zoom in on the performance of Indonesia's main stock index (IHSG), which has been highly volatile in the last week. It seems like its trend for the upcoming short-term has changed from an upward into a sideward trend. While the Dow Jones Index has been setting new records, the IHSG is showing some signs of fatigue.
The Sunda Strait bridge, a planned road and railway connection between the two western Indonesian islands of Sumatra and Java, has been a dream of Indonesia's political elite since the 1960s. From both a political and an economic point of view, the connection between these two islands through physical infrastructure is a grand ideal. However, as with many other infrastructure projects in Indonesia, its realization tests people's patience.
Despite the fact that Indonesia reported the world's third-highest GDP growth in 2012 (behind China's 7.4 percent and Saudi Arabia's 7.1 percent), supported by rising consumption by a burgeoning middle class and significant increased foreign direct investment, the country's performance in terms of competitiveness is disappointing. It is cheaper to import products from countries that contain competitive businesses than to produce them in Indonesia.
The number of air passengers in Indonesia has increased significantly during the last decade, and turned the country in one of the fastest-growing air travel industries worldwide. Blessed with robust macro economic growth and a subsequent burgeoning middle class, Indonesians are increasingly using airplanes as means of transportation. It is estimated that in 2012 about 72.5 million people used air transport in Indonesia, a ten percent year-on-year increase.
Indonesia's central government hopes that local governments team up with the private sector to develop the country's infrastructure. President Susilo Bambang Yudhoyono said that there are two ways through which local governments can stimulate its infrastructure development: cut expenses on other fields and use it on infrastructure development instead, or, invite the private sector to participate in public-private partnerships (PPPs).
One of the industries that has been showing remarkable growth in recent years in Indonesia is the aviation industry. Blessed with robust macro economic growth and a burgeoning middle class, the country's population is increasingly using airplanes as means of transportation. Considering the magnitude of Indonesia, its island rich composition and underdeveloped road and rail network, air travel is an efficient option.
Both Indonesia's cement production and cement consumption have risen rapidly in recent years. As the country has been showing solid economic growth for a decade - and is forecast to continue this growth -, property and infrastructure projects have grown in number accordingly, thus increasing demand for building materials such as cement. Moreover, the government is committed to enhance the country's much-needed infrastructure development.
Associated businesses Infrastructure
