Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • 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

    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

    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

    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

    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

    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

    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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  • Indonesia & ASEAN Economic Community (AEC) - Introduction

    Per 1 January 2016 the ASEAN Economic Community (AEC) came into effect. This community implies stronger cooperation and integration among the ten member countries in Southeast Asia. According to its blue print the AEC involves the launch of a single market and production base among its member nations, hence allowing the free flow of goods, services, investment, and skilled labor as well as the freer flow of capital. Indonesia is one of the member countries.

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  • 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's Cement Sales End 2015 in a Positive Way

    Indonesia's cement sales totaled 61 million tons in 2015, up 1.8 percent from sales in 2014. Although the pace of growth is limited, the final result was well received by stakeholders and policymakers because in the first half of 2015 the nation's cement sales growth still stood at -1.5 percent on a year-on-year basis due to a delay in government-led infrastructure development. In the second half of the year there occurred a surge in infrastructure development projects, hence triggering higher cement sales.

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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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