Below is a list with tagged columns and company profiles.

Today's Headlines Transportation

  • Construction Jakarta-Bandung High-Speed Railway Project to Start?

    Construction Jakarta-Bandung High-Speed Railway Project to Start?

    Next week construction of the high-speed Jakarta-Bandung railway project may finally start as the government is set to issue the necessary construction permit that allows for the development of Indonesia's first-ever high-speed railway project. This railway will connect Indonesia's capital city of Jakarta to the city of Bandung in West Java. Although the groundbreaking ceremony was conducted in January 2016 the project - similar to many other infrastructure projects in Indonesia - has been plagued by a long delay.

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  • Weak Infrastructure Blocks Investment in Indonesia's Cold Storage Industry

    Weak Infrastructure Blocks Investment in Indonesia's Cold Storage Industry

    The cold storage industry of Indonesia needs IDR 12 trillion (approx. USD $902 million) of additional investment in order to raise installed capacity to a sufficient level. Currently, Indonesia still has to cope with a deficit in terms of the availability of cold storage facilities. This causes a problem for the preserving as well as the transportation of (processed) seafood, chicken meat, fruits and vegetables. At the start of 2016 the Indonesian government announced it would open the cold storage industry to foreign investment for the full 100 percent. However, investment realization has been limited.

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  • Indonesia's Mudik Travelers Estimated to Rise in 2016

    Indonesia's Mudik Travelers Estimated to Rise in 2016

    The Transportation Ministry of Indonesia predicts that there will be around 18 million people traveling back to their places of origin ahead of this year's Idul Fitri celebrations (the days that mark the end of the Ramadan fasting month). This prediction is 3.3 percent higher than the flow of people during last year's Idul Fitri (17.4 million). The annual exodus of Indonesian workers and professionals from the cities back to their hometowns - to spend some days with their parents - ahead of Idul Fitri (Lebaran) is called mudik in Indonesian.

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  • Government of Indonesia Preparing 11th Economic Stimulus Package

    Government of Indonesia Preparing 11th Economic Stimulus Package

    The government of Indonesia is currently preparing the 11th economic policy package. Chief Economics Minister Darmin Nasution told reporters that this 11th package will focus on curtailing Indonesia's logistics costs, reducing dwelling time at Indonesian harbors, and improving the investment climate of Indonesia. He expects the 11th package to be unveiled next week. Since September 2015 the Indonesian government has unveiled ten economic stimulus packages. These packages aim to boost economic growth in Indonesia through deregulation, tax incentives and by opening room for foreign investment.

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  • New Cities and Economic Centers along the Jakarta-Bandung Railway

    New Cities and Economic Centers along the Jakarta-Bandung Railway

    Indonesia's first high-speed train, which will run between Jakarta and Bandung (in West Java) is expected to give rise to new economic centers and cities along the 142 kilometers-long railway. Construction of the project, estimated to cost a total of USD $5.5 billion, is scheduled to kick off on 21 January 2016 in Bandung as Indonesia's Transportation Ministry has finally issued the track permit (this had been a major hurdle previously).

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  • Indonesia Cancels Jakarta-Bandung’s High-Speed Train Project

    Indonesia Cancels Jakarta-Bandung’s High-Speed Train Project

    Indonesia has cancelled further development of the multi-billion high-speed railway between the capital city of Jakarta and Bandung (West Java) as President Joko Widodo decided that Indonesia does not need a train that can reach speeds of over 300 km per hour on the relatively short route (150 km) between both cities. Besides the short distance, there will also be around 14 stations constructed between both terminal stations, implying that the train needs to hit the brakes before it can reach its maximum speed.

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  • Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

    Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

    Inflation in Indonesia accelerated more than expected in July 2015. Based on the latest data from Statistics Indonesia (BPS), Indonesian inflation rose 0.93 percent (m/m) in July, primarily due to higher food and transportation costs caused by the Ramadan month and Idul Fitri celebrations. During this month, the people traditionally increase consumer spending (triggering higher food prices) and millions of people travel back to their places of origin for the Idul Fitri festivities (triggering higher transportation costs).

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  • Ramadan & Infrastructure in Indonesia: Idul Fitri Exodus Estimated at 20 Million

    Ramadan & Infrastructure in Indonesia: Idul Fitri Exodus Estimated at 20 Million

    It is estimated that about 20 million Indonesians will travel back to their hometowns during the Idul Fitri (also known as Lebaran) celebrations that mark the end of the Ramadan (the Islamic holy fasting month) next month. This homeward bound traveling is locally known as mudik. The annual mudik tradition involves millions of Indonesians taking time off from work, leaving their urban residences and travel back to their places of birth in the rural areas for a few days. During these days cities become empty.

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  • Inflation Update Indonesia: May Inflation Rises Beyond Expectation

    Inflation Update Indonesia: May Inflation Rises Beyond Expectation

    Inflation in Indonesia accelerated higher than expected in May 2015. Based on the latest data from Statistics Indonesia (BPS), announced today, Indonesia’s consumer price index rose to 7.15 percent (y/y) in May, from 6.79 percent (y/y) in the preceding month. The primary reason for higher inflation is rebounding oil prices thus causing higher prices at fuel pumps. As fuel subsidies have been largely cut at the start of 2015, the recent rising global oil prices now cause serious inflationary pressures in Indonesia.

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  • Inflation Update Indonesia: November Inflation Rises to 6.23% Y/Y

    Indonesia’s Central Statistics Agency (BPS) announced on Monday (01/12) that the country’s inflation figure accelerated to 6.23 percent year-on-year (y/y) in November 2014 (from 6.23 percent y/y in the previous month) due to the impact of higher subsidized fuel prices implemented by the Indonesian government. On 18 November, prices for subsidized fuels (low-octane gasoline and diesel) were raised by more than 30 percent in a bid to reallocate public spending from fuel consumption to productive long-term development.

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Latest Columns Transportation

  • Tackling Logistics Costs: Indonesia to Cut Toll Road Ticket Prices?

    Tackling Logistics Costs: Indonesia to Cut Toll Road Ticket Prices?

    The Indonesian government is studying the possibility of cutting toll road prices for specific trucks, hence companies engaged in transportation logistics would be the key beneficiaries. The study comes after stakeholders have complained about the expensive prices that are charged by toll road operators (most of which are state-controlled companies). Indonesian President Joko Widodo said a price cut of up to 30 percent is possible. A cheaper price would improve the competitiveness in the logistics sector.

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  • Ship Registration Procedure Reregulated by Ministry of Transportation

    Ship Registration Procedure Reregulated by Ministry of Transportation

    Recently, the Ministry of Transportation issued regulation no. PM 13 of 2017 regarding Ship Registration and Nationality (New Regulation). The New Regulation aims to increase investments in the Indonesian shipping sector. The New Regulation covers a wide scope, and therefore this column will focus on the ship registration of ownership procedures.

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  • The Impact of Low Oil Prices on Listed Companies in Indonesia

    The Impact of Low Oil Prices on Listed Companies in Indonesia

    Overall, low crude oil prices are problematic for stock markets as low prices indicate the world economy is not expanding on full throttle. This curbs investors' risk appetite. Particularly those companies that are active in the oil industry (or in related industries) will likely face declining share prices. However, there are also positive effects of low oil prices. For example consumers' purchasing power should improve because prices at the gas pump are lower, while some companies can curb operational costs. Hence, consumer and transportation stocks should actually benefit from low oil prices.

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  • Regulating the Ride-Hailing Apps Revolution in Indonesia

    Regulating the Ride-Hailing Apps Revolution in Indonesia

    On Saturday, 01 April, 2017, the new regulations for ride-hailing apps in Indonesia came into effect, designed to protect consumers of these apps and support traditional transportation services such as taxi operators, minivans, buses and motorcycle taxis. The regulations include maximum and minimum tariffs for four-wheeled-vehicle rides that are booked through the online app, as well as a limit on the number of vehicles available. However, authorities will give time to these ride-hailing apps to adjust to the new regulations due to the "magnitude of the technical rules".

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  • The Life of an Expat in Jakarta: App-Based Transport Services

    The Life of an Expat in Jakarta: App-Based Transport Services

    Foreigners who live in Indonesia's capital city of Jakarta are well aware of the horrible traffic situation. The lack of sufficient infrastructure development in combination with high car sales in recent years as well as the ever-growing population of Jakarta have resulted in complete standstills in many parts of the city, particularly on weekdays. To cover a relatively small distance in a car or taxi it can take hours, a loss of valuable time. Fortunately, there is a solution to these traffic jams.

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  • App-Based Transportation: Grab Sees Strong Growth in Indonesia

    App-Based Transportation: Grab Sees Strong Growth in Indonesia

    Grab, the Malaysia-founded online application used for transportation services, has experienced remarkable growth in Indonesia during the first half of 2016. GrabCar and GrabBike have grown some 250 percent despite a 50 percent cut in its fare subsidy in this period. More than 25 percent of active Grab users in Indonesia use Grab services more than once a month. This success is due to the government's decision to legalize mobile application-based transportation services (under specific conditions) and the re-branding of Grab (formerly it was known as GrabTaxi).

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  • Indonesian Companies in Focus: Construction Firm Adhi Karya

    Indonesian Companies in Focus: Construction Firm Adhi Karya

    State-controlled construction company Adhi Karya's corporate earnings should rise in the years ahead on the back of the light rail transit (LRT) project that is expected to provide IDR 33 trillion (approx. USD $2.5 billion) worth of contracts for the construction company. Adhi Karya was appointed to construct the Greater Jakarta part of the LRT that will connect Jakarta with the satellite cities around the capital city. According to Trimegah Securities, this project will bring plenty of long-term profit for Adhi Karya.

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  • Infrastructure Indonesia: Light Rail Transit (LRT) in Palembang

    Infrastructure Indonesia: Light Rail Transit (LRT) in Palembang

    Two state-controlled companies (both listed on the Indonesia Stock Exchange) are expected to feel the positive impact of the light rail transit (LRT) in Palembang (South Sumatra), a transportation project currently under construction. These two companies are construction firm Waskita Karya and cement producer Semen Baturaja. These two companies are heavily involved in the LRT project that is estimated to cost around USD $520 million. This LRT track is supportive infrastructure for the 2018 Asian Games, to be held in South Sumatra in August 2018.

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  • Construction of Indonesia's Jakarta-Bandung Railway Should Start Soon

    Construction of Indonesia's Jakarta-Bandung Railway Should Start Soon

    After experiencing a two-month delay due to permitting and concession trouble, the construction of the Jakarta-Bandung fast train should be able to commence soon. Indonesian Transportation Minister Ignasius Jonan confirmed on Wednesday (16/03) that his ministry agreed to grant a 50-year concession period to the Chinese-Indonesian consortium named Kereta Cepat Indonesia Cina (KCIC). The granting of this concession means that KCIC should be able to secure the necessary construction and business permits soon. The USD $5.1 billion Jakarta-Bandung railway (in West Java) is one of the mega-infrastructure projects of Indonesia.

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  • Indonesian Taxi Drivers Protest Against Uber, GrabCar & Go-Jek Apps

    Indonesian Taxi Drivers Protest Against Uber, GrabCar & GoJek Apps

    Indonesian drivers of taxis, buses and bajaj (three-wheeled scooters) gathered on Monday (14/03) on several locations - in front of the State Palace, City Hall, and the Ministry of Communication and Information - in Central Jakarta to demonstrate against the presence of online transportation applications such as Uber Taxi, GrabCar and Go-Jek. Protestors claim that these mobile apps are operating illegally in the country (as these services are not regulated by law) and cause a decline in income for long-time established transportation services, including taxi services, bus services and the more traditional transportation services such as bajaj and ojek (motor taxi).

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