Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Jokowi Opens Bonded Logistics Centers to Improve Indonesia's Competitiveness

    Jokowi Opens Bonded Logistics Centers to Improve Indonesia's Competitiveness

    Indonesian President Joko Widodo inaugurated 11 bonded logistics centers on Thursday (10/03) as part of Indonesia's second economic stimulus package that was unveiled on 30 September 2015. These bonded logistics centers aim to curtail the country's notoriously high logistics costs which makes businesses in Indonesia less competitive and the general business climate in Southeast Asia's largest economy less attractive. The official opening ceremony for the 11 centers (mostly located on the island of Java) was held in Jakarta.

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  • Cement Sales in Indonesia Rise in February, Export in Focus

    Cement Sales in Indonesia Rise in February, Export in Focus

    Cement sales in Indonesia rose 3 percent year-on-year (y/y) to 4.45 million tons in February 2016 from the same month one year earlier. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said Indonesia's rising cement sales were caused by the ongoing development of infrastructure projects across the archipelago. Three regions showed a marked increase in cement sales last month: Sumatra (+16.5 percent y/y to 2.13 million tons), Sulawesi (+33 percent y/y to 841,000 tons) and the Moluccas & Papua (+31 percent y/y to 125,000 tons).

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  • FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    Japanese companies remain committed to invest in Indonesia - particularly into infrastructure, power and manufacturing - according to the Kansai Economic Federation (Kankeiren), one of Japan's private, non-profit representative economic organizations. Kankeiren Chairman Shosuke Mouri met Indonesia's Chief Economics Minister Darmin Nasution on Monday (07/03) in Jakarta. Japan is one of the biggest investors in Indonesia. During the period 2010-2015 the country invested a combined total of USD $14.9 billion in Indonesia.

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  • Dam Construction in Indonesia: 8 Dams to Be Tendered

    Dam Construction in Indonesia: 8 Dams to Be Tendered

    Indonesia's Ministry of Public Works and Housing targets to complete the tender process for eight dams, worth a combined IDR 8.60 trillion (approx. USD $637 million) - all national strategic projects - by June 2016. Imam Santoso, Director of Dams at the Public Works Ministry, said one dam has already been tendered last week: the IDR 1.04 trillion Kuwil Kawangkoan Dam in North Sulawesi. Next week the government is set to tender the Leuwikeris Dam in West Java. The central government aims to tender a new dam project every two weeks up to June 2016.

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  • GVK to Develop New International Airport in Yogyakarta

    GVK to Develop New International Airport in Yogyakarta

    India-based conglomerate GVK is ready to invest USD $500 million as part of its commitment to develop a new international airport in Yogyakarta. Karthi Gajendran, President of Airport Development at GVK, said the company sees great potential in the construction of a new airport in Temon (Kulo Progo) near the coastal line in the Indonesian province of Yogyakarta. GVK will create a joint venture with Indonesian state-owned airport operator Angkasa Pura I later this year to develop the new airport.

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  • Cement Sales Indonesia Rise in January on Infrastructure Push

    Cement Sales Indonesia Rise in January on Infrastructure Push

    The start of infrastructure projects in Indonesia - ranging from roads, bridges, power plants, smelters, and public housing - has managed to boost cement consumption in the first month of 2016. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement consumption in Indonesia rose 4.4 percent (y/y) to 5.14 million tons in January 2016 from the same month one year earlier. Highest growth in consumption occurred in Sumatra (+15.8 percent y/y to 1.1 million tons), Java (+5.3 percent y/y to 2.9 million tons) and Sulawesi (+19 percent y/y to 424,000 tons).

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  • Indonesian Banks Look at Food & Beverage Sector for 2016 Credit Growth

    Indonesian Banks Look at Food & Beverage Sector for 2016 Credit Growth

    Besides infrastructure, Indonesia's food and beverage sector remains a favorite of Indonesian banks for the disbursement of loans in 2016 as this sector is regarded promising. Meanwhile, a good supply of food products also supports a stable inflation rate (apart from administered prices, volatile food prices are a key contributor to inflation in Indonesia). Roy Armand Arfandi, General Director of Bank Permata, said Indonesia's economic growth is still highly dependent on people's purchasing power (household consumption accounting for nearly 56 percent of the nation's GDP), hence those sectors that support domestic consumption are attractive for banks.

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  • National Strategic Projects Indonesia: Land Acquisition & Funds

    National Strategic Projects Indonesia: Land Acquisition & Funds

    Indonesian contractors involved in the development of infrastructure projects that have been declared 'national strategic projects' still see difficulty in realization of these projects despite the implementation of Presidential Instruction No. 1/2016 on the Acceleration of the Implementation of National Strategic Projects, signed on 8 January 2016 by Indonesian President Joko Widodo. This presidential instruction orders all relevant ministries and institutions to support the acceleration of the country's national strategic projects. By 2019 these projects - 225 in total - have to be completed.

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  • Moody's Investors Service Keeps Indonesia's Credit Rating at Baa3

    Moody's Investors Service Keeps Indonesia Credit Rating at Baa3

    New York-based Moody's Investors Service kept Indonesia's sovereign credit rating at Baa3 (stable outlook), the lowest level within the investment grade rating. Although the rating agency is positive about the strong nature of Indonesia's economy and the prudent fiscal policy that is safeguarded by the Indonesian government and central bank, it sees few room for an upgrade soon (to Baa2) as government revenue is not expected to rise significantly in the period ahead. Moody's released this statement on Thursday (28/01).

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  • Infrastructure Indonesia: Government Offers Toll Road Projects

    Infrastructure Indonesia: Government Offers Toll Road Projects

    Indonesia's Ministry of Public Works and Housing said the government plans to offer three toll road projects to investors in the first quarter of 2016: (1) Cileunyi-Sumedang-Dawuan (Cisumdawu) in West Java, (2) Serang-Panimbang in Banten, and (3) Legundi-Bunder in East Java. These projects are part of the Indonesian government's target to add 1,000 kilometers of new toll roads up to 2019 in an effort to enhance the country's infrastructure development, hence improving connectivity across the archipelago and reduce logistics costs.

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Latest Columns Infrastructure

  • 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 Quarter I 2013 Financial Results Indonesia Investments

    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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  • The Ongoing Quest for the Reduction in Indonesia's Fuel Subsidy

    Fuel Price Hike Indonesia - Indonesia Investments - Richard van der Schaar

    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.

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  • Why Will the Jakarta Composite Index Have Another Volatile Week?

    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.

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  • Still Many Uncertainties Surrounding Indonesia's Sunda Strait Bridge (JSS)

    Sunda Strait Bridge - Jembatan Selat Sunda - JSS Indonesia Investments

    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.

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  • Low Competitiveness Blocks Development of Indonesia's Manufacturing Sector

    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.

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  • What is Blocking Realization of Indonesia's Lucrative Aviation Potential?

    What is Blocking Realization of Indonesia's Lucrative Aviation Potential?

    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.

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  • Local Governments and Private Sector Should Join Hands to Develop Infrastructure

    Local Governments and Private Sector Should Join Hands to Develop Infrastructure

    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).

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  • Booming Aviation Industry in Indonesia Continues its Fast Pace

    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.

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  • The Rise of Indonesia's Cement Production and Consumption

    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.

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