Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Rupiah & Stock Market Update Indonesia: Still Going Downhill

    Indonesian stocks continue to fall on today’s trading day (28/04). After having declined 3.49 percent yesterday, the benchmark Jakarta Composite Index fell a further 1.00 percent during the first trading session on Tuesday. Investors, particularly foreign ones, are still concerned about weak first quarter financial results of listed Indonesian companies, signalling that the country’s economic growth in Q1-2015 will be disappointing too. Furthermore, the market is waiting for results of the Federal Reserve’s two-day policy meeting which is set to start today.

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  • The 3 Reasons why Indonesian Stocks Fell Sharply on Monday

    The benchmark stock index of Indonesia - Jakarta Composite Index (IHSG) - fell sharply on Monday (27/04) amid mixed regional stock markets. Three main factors caused the weak performance of Indonesian stocks. Firstly, several key companies posted weak first quarter corporate earnings. Secondly, Indonesia’s economic growth in the first quarter may fall below 5 percent (y/y), which would be a six-year low. Lastly, Indonesia is getting bad press around the globe due to imminent executions of convicted foreign drug traffickers.

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  • 24th World Economic Forum: Indonesia Wants More Foreign Investment

    On the sidelines of the 24th World Economic Forum (WEF) on East Asia, Indonesia’s Chief Economic Minister Sofyan Djalil said that - despite global challenges - the government maintains its economic growth target of 5.7 percent (y/y) in 2015. However, he added that it will require great effort to achieve this target. One key strategy to achieve the target is to attract foreign investment through several policies including tax incentives and by easing the country’s bureaucratic hurdles for investment permits.

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  • Economic Update Indonesia: Car & Cement Sales in First Quarter 2015

    Two important indicators to measure the condition of an economy are car and cement sales as both statistics provide valuable information about people’s purchasing power (and consumer confidence) as well as infrastructure and property development. In the first quarter of 2015, Indonesia’s car and cement sales declined (compared to the same period in the preceding year), triggering concern that economic growth will fall accordingly. In the first quarter of 2014, Indonesia’s GDP growth had already slowed to 5.14 percent (y/y).

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  • Tenders in Indonesia: Infrastructure & Construction Tenders Delayed

    The deadline for tenders for various infrastructure projects in Indonesia has been extended by the Public Works and Public Housing Ministry because it needs more time to determine the number of projects to be offered and to calculate new budget allocations for these projects. Ministry official Hediyanto W. Husaini said that his ministry is optimistic that by early May 2015 all construction projects can be tendered. Currently, only 9,578 construction projects (about 70 percent of total planned projects) can be tendered.

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  • World Bank Releases March 2015 Indonesia Economic Quarterly

    The World Bank released its latest Indonesia Economic Quarterly report on 18 March 2015. In this report, entitled ‘High Expectations’, the World Bank states that it praises the early reform progress in several key areas such as fuel subsidies as well as more key reforms that are underway. This raises high expectations about the Indonesian economy in the middle and longer term. However, the government also faces challenges to implement further complex structural reforms amid subdued growth prospects.

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  • Construction Trans-Sumatra Toll Road Expected to Start in April 2015

    The Indonesian government will speed up construction of the 2,700 kilometers-long Trans-Sumatra toll road by revising Presidential Regulation No 100/2014 on Toll Road Construction in Sumatra and by accelerating the land acquisition process. The Trans-Sumatra toll road will become the main highway on Sumatra that connects Banda Aceh in the north to Bandar Lampung in the south through 24 sections stretching across ten provinces. President Joko Widodo said that construction of the highway is to start in April 2015.

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  • PPP Projects Indonesia: Building with Nature Innovation Program

    On Tuesday (03/03) the governments of Indonesia and the Netherlands launched a comprehensive five-year public-private partnership (PPP) for enhancing coastal safety at the northern coastal line of Central Java. By joining forces in this 5 million euro project (financed by the Dutch Sustainable Water Fund), mangrove restoration, small scale hard-engineering, and sustainable land use are to result in reduced erosion risk at the coastal area. Key to the project is the use natural protection to strengthen sustainable coastal engineering.

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  • Infrastructure Projects in Indonesia: Cilamaya Seaport Project

    Indonesian Transportation Minister Ignasius Jonan said that the Cilamaya port project in Karawang (West Java) may be tendered this year to the private sector. The central government is currently engaged in the preparation of the terms of reference (TOR) for the project. Through the construction of the Cilamaya port, which will occupy 2,000 hectares of land some 65 kilometers east of Jakarta, the government aims to reduce the country’s logistics costs and ease traffic at the Tanjung Priok port, the largest Indonesian seaport, in Jakarta.

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  • Government of Indonesia Eager to Limit Investment in Cement Industry

    The Indonesian government wants to limit investment opportunities in the country’s cement industry in an attempt to maintain a healthy business climate. Indonesian Industry Ministry official Harjanto said that Indonesia’s current cement production capacity is more than enough to meet domestic demand. Given that most established cement producers have expansion plans the influx of new cement producers leads to an oversupply thus reducing companies’ profit margins. The nation’s cement production capacity stands at 77 million tons per year.

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Latest Columns Infrastructure

  • Indonesia Jumps to No. 38 in Global Competitiveness Index 2013-2014

    In recent weeks, Indonesia has to cope with a large amount of negative publicity as large capital outflows from the country's financial markets occurred, partly due to weak economic results regarding the current account balance, inflation and the the rupiah. Interest rates are rising, thus eroding people's purchasing power and consequently curbing economic growth. However, the Global Competitiveness Index 2013-2014, released by World Economic Forum, contained a positive outcome for Southeast Asia's largest economy.

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  • Indonesian Government Proposes $32.6 Billion of Subsidy Spending in 2014

    The government of Indonesia proposes to allocate IDR 336.24 trillion (USD $32.6 billion) for subsidy spending in the 2014 state budget draft: IDR 284.7 trillion (USD $27.6 billion) for energy subsidies and IDR 51.6 trillion (USD $5.0 billion) for non-energy subsidies. The proposed amount implies a 3.41 percent fall in total subsidy allocation compared to Indonesia's state budget in 2013. However, despite a reduction, subsidy expenditure is still large at 18.5 percent of total government spending (IDR 1,816.7 trillion).

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  • Slowing Growth in Indonesian Cement Sales Continues in Semester II

    Cement sales in Indonesia grew by seven percent to 32.9 million tons in the period January to July 2013. This pace of growth is significantly lower compared to the double-digit cement growth rate last year and thus forms another sign of cooling economic growth in Southeast Asia's largest economy (cement sales are a good indicator to measure the state of economic growth of a country). A slowdown in domestic cement sales is likely to continue in the second half of 2013, partly due to a decline in infrastructure projects.

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  • Revised Tax Holiday and Tax Allowance to Attract Investments in Indonesia

    Apart from the five tax incentives that I have mentioned in a previous column, the Indonesian government also intends to ease two other tax rules in order to boost investments in Indonesia from 2014 onwards. These are the tax holiday and tax allowance. Relaxation of the tax holiday involves an alteration to the period as well as the size of the investment, and relaxation of procedural difficulties. Relaxation of the tax allowance involves the revision of the number of sectors that are eligible and a relaxation of procedures in the form of tax clearance.

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  • Groundbreaking of Sunda Strait Bridge Project Unlikely to Occur in 2014

    Due to uncertainty over the feasibility study, it seems highly unlikely that groundbreaking of the ambitious Sunda Strait Bridge project can be conducted in 2014. There has been a long delay with the feasibility study as differences of opinion emerged over who would undertake the study and how it will be financed. Economic Minister Hatta Rajasa said that if the government considers the project to have high priority, then it should make a decision now. If not, Indonesia's next government - after the 2014 elections - will be burdened with the issue.

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  • Supported by Domestic Investors, Indonesia's Stock Index Rises 0.61%

    Indonesia's main stock index (IHSG) rebounded on Tuesday (30/07) as domestic investors were keen on buying Indonesian assets. The value of transactions rose steeply to IDR 8.9 trillion (USD $872.5 million) and four billion shares changed hands. Indonesia's blue chips experienced a good day with Perusahaan Gas Negara gaining 3.51 percent, Bank Rakyat Indonesia 3.18 percent, and Telekomunikasi Indonesia rising 3.07 percent. The IHSG ended the trading day at 4,608.49 points, a 0.61 gain.

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  • Chamber of Commerce: Problems of Infrastructure Projects in Indonesia

    Indonesia's Chamber of Commerce and Industry (Kadin) said that it signals a lot of foreign interest in infrastructure projects in Indonesia. However, the country's unconducive investment climate blocks investors from initiating or participating in these projects. A number of matters that cause the unconducive investment climate are discrepancies in regulatory framework between central and regional governments, land acquisition, and a lack of human resources with adequate skills.

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  • Indonesia's Cement Consumption Grows 8.6% in January - April 2013

    Cement consumption in Indonesia increased 8.6 percent to 18.11 million tons in the first four months of 2013. Demand was particularly supported by property and housing projects in the bigger cities of Indonesia. Another pillar of support was found in the development of various infrastructure projects (including those within the framework of the government's ambitious MP3EI plan). The Indonesian Cement Association expects this year's cement consumption in Indonesia to rise to 61 million tons in total.

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  • Bloody May; the Month that Brings Traditional Pressures on Indonesia's IHSG

    Last week Indonesia's main stock index (IHSG) was mixed with a weakening trend. The index lost 19.9 points, equivalent to 0.40 percent of its value. During the last month, the index consolidated within the range of 4,800 and 5,030 points. Foreign funds continued to pour in and trade volume remained high although below average trade in the last three weeks. In fact, our technical indicators are showing signs that Indonesia's main stock index has become saturated.

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  • Astra International (ASII) Presents First Quarter Results of 2013

    Astra International, Indonesia's largest listed company by market capitalization, presented its Q1-2013 financial results yesterday. The company, which represents the dominating force in Indonesia's automotive sector, posted a seven percent fall in net earnings (YoY) to IDR 4,310 trillion (USD $444.3 million) amid Indonesia's rising labour costs, weak commodity prices, increased competition in the country's car sector and effects of new minimum down-payment regulations in automotive Shariah-financing.

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