Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Pelindo II Announces Winner of New Priok Port Tender at the End of 2013

    PT Pelabuhan Indonesia II (Indonesia Port Corporation in English but most widely known as Pelindo II), the state-owned enterprise that is involved in port and harbour services in ten Indonesian provinces, will choose its partner for the construction of terminal II and terminal III of the New Priok Port project from a selection of 12 companies. These companies can either opt to join the tender for the construction of one terminal, or, for both terminals together. At the end of the year, the winners of the tenders will be announced.

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  • Indonesia Launches Committee to Prepare for ASEAN Economic Community

    In order to be fully prepared for the start of the ASEAN Economic Community in late 2015, the Indonesian government has formed a national committee that will provide analysis, evaluations as well as recommendations to the government. Indonesia's president Susilo Bambang Yudhoyono announced plans to set up this committee in April. He stated that the committee will include representatives from the government, entrepreneurs, analysts and members of the public.

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  • Company Profile Update: Lippo Cikarang, a Leading Property Developer

    Indonesia Investments presents the updated company profile of PT Lippo Cikarang Tbk, a leading Indonesian property developer that started operations in the early 1990s with the development of the Cikarang township in Bekasi (West Java). This township includes both industrial and residential centers, complete with supporting infrastructure and public facilities on a 3,000 hectare-wide landbank. Similar to other Indonesian property developers, Lippo Cikarang has posted growing profits due to higher demand in the property sector.

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  • Construction of Jakarta's MRT Projected to Start in October 2013

    In order to tackle Jakarta's grave traffic problem, brought on by a lack of quantity and quality of infrastructure and public transportation in combination with millions of daily travelers, governor Joko Widodo has given great priority to the development of the Jakarta Mass Rapid Transit System (MRT). Similar to the Sunda Strait Bridge, Jakarta's MRT project has been a topic of heated discussion and study for decades. However, pressure from Jakarta's governor Joko Widodo (who is better known as Jokowi) put an end to the lingering delay.

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  • Indonesian Government: Inflation Rises in 2013, but Eases in 2014

    The government of Indonesia expects inflation to rise to 7.2 percent in 2013 because of the increase in the price of subsidized fuel in June, and expects it to ease to 4 percent in both 2014 and 2015 provided that good monetary policy is implemented. This good monetary policy should particularly be targeted at maintaining food security. The projections were presented by the Fiscal Policy Agency (Badan Kebijakan Fiskal), the Ministry of Finance, and Indonesia's central bank Bank Indonesia.

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  • Indonesia's Manufacturing Growth of 2013 is Revised Down to 6.5 Percent

    About a week ago, Indonesia's highly optimistic minister of Industry, MS Hidayat, stated that Indonesia's non oil & gas manufacturing sector would grow around 9 percent in 2013. Now, however, the minister has felt the need to revise this figure down to 6.5 percent after meeting several other ministers. Issues that will limit growth of the manufacturing sector are higher minimum wages, the planned rise in subsidized fuel prices, and the lack of support through bank credits.

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  • Company Profile Update: Holcim Indonesia, a Leading Cement Producer

    Indonesia Investments presents the updated company profile of Holcim Indonesia, Indonesia's third-largest cement producer. The company, part of the Swiss-based Holcim Group, provides a fully integrated range of cement types, concrete and aggregates to customers (mostly on Java). Indonesia's cement business has been booming in recent years and therefore Holcim is focused on expanding its production capacity through the construction of two Tuban plants. The company holds a 15 to 16 percent market share in Indonesia.

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  • Royal HaskoningDHV to Supervise Construction of the New Priok Port

    Royal HaskoningDHV, a Netherlands-based international project management and engineering consultancy services provider, has won the contract to supervise the construction of the extension of the main port of Jakarta, Tanjung Priok. The contract is part of the New Kalibaru Terminal Development. The first phase includes the development of a new 4.5 million TEUs container terminal which aims to enhance the economic development of Indonesia and will bring Indonesia's port facilities on par with other world-class ports.

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  • Company Profile Update: Indocement, a Leading Indonesian Cement Producer

    Indocement Tunggal Prakarsa is the second largest cement producer of Indonesia in terms of market share. Its operations are spread across factories in West Java and South Kalimantan, comprising a total of 12 plants. At end 2012, Indocement’s total installed design capacity was 18.6 million tons of cement per year. Indocement offers a diversified range of cement products which are sold under the “Tiga Roda” brand. Indonesia's cement sector has shown a steep increase in domestic cement production and consumption.

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  • Tender for Construction Terminal 2 and 3 of the Kalibaru New Priok Harbour

    PSA International (the Port of Singapore Authority) is one of the participants in the tender - organized by PT Pelindo II - for the construction of terminal two and three of the Kalibaru New Priok harbour in North Jakarta. According to the Director of Pelindo II, RJ Lino, there are 18 participants in the tender, of which the winner will probably be announced in September 2013. Companies can either opt to join the tender for the construction of both terminals, or, one of the two terminals.

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Latest Columns Infrastructure

  • Recap: G20 Major Economies Agree that the Global Economy is Improving

    One of the conclusions of the G20 Finance Ministers and Central Bank Governors meeting (MGM) that was conducted on 22 and 23 February 2014 in Sydney, Australia, was the group's shared view that the global economy is displaying signs of improvement. Indications of global economic improvement are reflected by strengthening growth in the USA, United Kingdom and Japan. In the meeting Indonesia was represented by Finance Minister Chatib Basri and Bank Indonesia Governor Agus Martowardojo.

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  • MP3EI Update Indonesia: Total Investments Reach USD $51.6B in 2014

    Total realized investments in the context of the government's Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) will reach IDR 628.9 trillion (USD $51.6 billion) in 2014. The MP3EI was unveiled by the Indonesian government in May 2011 to accelerate its ambitious goal of becoming one of the world's largest economies by 2025. This masterplan particularly focuses on (much-needed) infrastructure development by cooperating with the private sector (for example through public-private partnerships).

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  • Along Slowing Economy and Floods Indonesia's Cement Sales Decline

    Indonesia's cement sales in January 2014 declined 1 percent to 4.65 million metric tons from the same month in 2013 (4.68 million metric tons). The decline was caused by severe floods brought about by high rainfall amid a peak in Indonesia's rainy season. The floods resulted in disrupted distribution networks, therefore blocking cement shipments to retailers. Moreover, these weather conditions caused the postponement of several construction activities, thus reducing demand for cement.

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  • Indonesia Designs Three Scenarios for Infrastructure Funding in the RPJMN

    The government of Indonesia - through its Ministry of National Development Planning (known as Bappenas) - designed three funding scenarios for Indonesia's infrastructure development in the National Medium-Term Development Plan (RPJMN 2015-2019). The lack of appropriate infrastructure is one of the bottlenecks to Indonesia's development. The scenarios involve the amount of funds and other requirements for infrastructure investment. The three scenarios are divided into a 'full scenario', a 'partial scenario' and a 'baseline scenario'.

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  • Japan's Mitsui Confident in Long-Term Prospects of Investing in Indonesia

    Mitsui & Co, one of the largest trading companies in Japan, believes that Indonesia is one of the most prospective investment destinations for the middle and longer term. After Brasil and Chile, Indonesia is currently the third-largest investment market for Mitsui & Co, which is part of the Mitsui Group. The latter has stakes in various sectors including energy, food, logistics and finance. The CEO of Mitsui & Co, Masami Iijima, stated that Indonesia is lucrative due to its large and young population as well as its rapidly expanding middle class.

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  • Indonesia Received Record Amount of Direct Investments in 2013

    On Tuesday (21/01), the Indonesia Investment Coordinating Board (BKPM) announced that investments in Indonesia grew 27 percent to IDR 398.6 trillion (USD $33 billion) in 2013, thus exceeding the target that was set at the start of the year (IDR 390 trillion). This result, which is a new record high for Southeast Asia's largest economy, was supported by a 39 percent increase in domestic direct investment (IDR 128.2 trillion) and a 22 percent increase in foreign direct investment (IDR 272.6 trillion).

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  • Two Airports Serving the Community of Indonesia's Capital City of Jakarta

    On Friday 10 January 2014, the government of Indonesia opened Halim Airport for scheduled commercial flights. Previously, the only airport that served these types of flights around Indonesia's capital city of Jakarta and surrounding towns was the Soekarno-Hatta International Airport (Soetta), located in Cengkareng (Banten). However, the amount of daily passengers at Soetta has exceeded its capacity. Based on data from Airports Council International, released in 2013, Soetta is the world's tenth busiest airport.

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  • Indonesia's Retail Sales Accelerate in November; Positive Outlook for 2014

    Indonesian retail sales surged 14 percent in November 2013 from one year earlier (the highest growth rate since July 2013). On a month-to-month basis, Indonesia's retail sales increased 1.5 percent from October 2013. These findings were the result of a survey conducted by the central bank of Indonesia (Bank Indonesia), which surveyed 650 retailers in 10 Indonesian cities. The bank's survey also indicated that Indonesian retailers may increase prices of their products in 2014 in order to compensate for the depreciating rupiah exchange rate.

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  • International Tender Surabaya Monorail and Tram Project in December 2013

    The regional government of Surabaya, Indonesia's second-largest city after the capital city of Jakarta, is planning to tender two separate infrastructure projects - open to both foreign and domestic investors - at the start of December 2013. The two projects involve the construction of the city's monorail, valued at IDR 6.42 trillion (USD $558.3 million), and the construction of a tramline, valued at IDR 2.41 trillion (USD $209.6 million). When finished, the two projects are expected to reduce traffic congestion in Surabaya, East Java's economic center.

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  • Indonesian Government Offers Private Sector 27 Infrastructure Projects

    One of the major problems which is blocking Indonesia's economic growth is the country's infrastructure. The lack of quality and quantity of Indonesia's infrastructure causes logistics costs to rise steeply and thus makes investors (particularly the foreign ones) hesitant to invest as high logistics costs imply a weakening of the country's competitiveness. The problem of Indonesia's infrastructure is both 'hard' infrastructure (roads, airports and electricity supply) and 'soft' infrastructure (social welfare and health care).

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