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.

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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.

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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.

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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.

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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).

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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.

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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).

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The Indonesian Cement Association (ASI) said cement sales in Indonesia grew by 7.6 percent year-on-year (y/y) to 66.4 million tons in full-year 2017. Widodo Santoso, Chairman of ASI, said cement sales rose in all regions across the country with the exception of Kalimantan and Sulawesi. As usual, the biggest cement consumer in 2017 was Java. This island accounted for 57 percent of total cement consumption in Indonesia in 2017, followed by Sumatra with 21 percent.

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In line with the progress in the light rail transit (LRT) project, Indonesian construction company Adhi Karya has used the majority of funds that were assembled through the company's rights issue. Based on a report released by the state-controlled company, it has already used IDR 2.4 trillion (approx. USD $179 million) - or about 88 percent of rights issue proceeds. The rights issue took place on 22 September 2015.

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Indonesian President Joko Widodo opened Silangit International Airport on Friday (24/11). The opening of this international airport is expected to give a boost to tourist arrivals at Lake Toba (in Indonesian: Danau Toba) in North Sumatra. Silangit Airport, which is located about 70 kilometers to the south of Lake Toba, makes it much easier for domestic and foreign tourists to travel to the famous lake.

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If we take a look at Indonesia's central government spending in the first four months of 2018, then we detect something interesting. Overall, government spending has grown in the January-April 2018 period (compared to the same period one year earlier). However, growth in government spending is led by rising social assistance spending and rising subsidy spending. Meanwhile, growth of infrastructure spending has been much less robust. Does this mean that the Indonesian government has curtailed infrastructure development spending in order to relieve rising pressures on the budget deficit?

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The tourism industry of Indonesia is one of the most important industries in terms of the nation's foreign exchange earnings. However, compared to its neighboring countries - specifically Singapore, Malaysia and Thailand - Indonesia lags behind in terms of foreign visitor arrivals. This "failure" is partly attributed to the weak state of Indonesia's infrastructure. This includes the lack of enough airports or the lack of enough aircraft and passenger handling capacity at existing airports.

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Cement sales were good in January 2018 for Indonesian cement manufacturers, growth that is attributed to rising cement demand on the back of the government-led infrastructure development program, particularly the construction of toll roads. Indonesia's cement consumption rose 9.9 percent year-on-year (y/y) to 5.68 million tons in January 2018.

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The completion of the high-speed Jakarta-Bandung railway in West Java is expected to see a delay due to land acquisition and licensing troubles. The USD $5.9 billion project is now expected to be completed in 2020, one year later than originally planned.

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Revenue and profit of Wijaya Karya (Wika), one of Indonesia's biggest construction companies, is partly dependent on developments surrounding the Jakarta-Bandung high-speed railway project. Earlier this month, Indonesian President Joko Widodo ordered an evaluation of this railway project, which saw groundbreaking in 2016 but has shown limited progress ever since.

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It was a solid year for the Indonesian economy. The macroeconomic fundamentals of the nation have strengthened due to the hard work of the Indonesian government under the leadership of President Joko Widodo. However, there is no room for complacency as there remain major bottlenecks, while legislative and presidential elections - in which voters can approve or disapprove Widodo's performance - are scheduled for 2019.

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Last week Indonesian President Joko Widodo inaugurated the 41.7-kilometer Parbarakan-Sei Rampah section of the Medan-Kualanamu-Tebing Tinggi toll road in North Sumatra. This Parbarakan-Sei Rampah section is now the longest piece of toll road on the island of Sumatra and will boost connectivity in the province of North Sumatra.

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In its latest report, the World Bank stated that Indonesia's macroeconomic fundamentals are solid and have been strengthening amid the central government's eagerness to implement critical structural reforms, while investment growth rose to the highest levels since the last quarter of 2015 (mainly investment in buildings and structures).

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Indonesian Minister of Home Affairs, Tjahjo Kumolo, made a statement in support of the Lippo Group's controversial Meikarta integrated township project. At the Indonesia Future City & REI Mega Expo 2017 on Thursday (14/09) Kumolo said Indonesia's regional governments should not unnecessarily obstruct private projects that help to develop the regional economy. He cited Meikarta as an example.

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One of the toll roads that is high on the Indonesian government's priority list is the Balikpapan-Samarinda toll road in East Kalimantan. The project is part of the government's quest to boost infrastructure development, thus reduce the nation's high logistics costs and make local businesses more competitive. However, as with every big infrastructure project in Southeast Asia's largest economy, there are bottlenecks that have caused a significant delay.

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