14 June 2022 (closed)
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Tag: Infrastructure
Below is a list with tagged columns and company profiles.
Today's Headlines Infrastructure
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Need for More Capital Injections into Indonesia's ‘Bleeding’ State-Owned Enterprises
On 8 June 2021 Indonesian Minister of State-Owned Enterprises Erick Thohir told Commission VI of the House of Representatives (DPR) that he proposes to raise the budget for capital injections into state-owned enterprises (SOEs) in 2022. The main reason is that the SOE Ministry wants to inject (additional) capital into 12 SOEs.
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Ports in Indonesia; Patimban Seaport Soon Ready to Become Indonesia’s Automotive Export Hub
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Indonesia Investments' Monthly Report Released: September 2020 Edition - Infrastructure in Focus
On Monday (05/10/2020) Indonesia Investments released the September 2020 edition of its monthly report. In this edition, titled 'Infrastructure in Focus', we focus on infrastructure development in Indonesia. For example we discuss how the lack of infrastructure development undermines economic and social development.
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President Joko Widodo’s Vision for Indonesia in the 2019-2024 Period
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Indonesian Economy: Solid Gross Domestic Product (GDP) Growth in 2018
In line with our forecast, Indonesia’s economic growth continued to accelerate in 2018. Based on data from Statistics Indonesia (Badan Pusat Statistik, or BPS), which were released in early February 2019, the country’s gross domestic product (GDP) expanded 5.17 percent year-on-year (y/y) in full-year 2018, up from a growth rate of 5.07 percent in the preceding year.
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Three Strategic National Projects of Indonesia to Be Completed in 2019
The construction of three national strategic projects - worth a combined IDR 70 trillion (approx. USD $5 billion) - is targeted to be completed before the end of 2019. These three projects are: (1) the first phase of Jakarta's mass rapid transit (IDR 16 trillion), (2) the New Yogyakarta International airport (IDR 10.8 trillion), and (3) the Patimban seaport in Subang, West Java (IDR 43.2 trillion).
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Infrastructure in Indonesia: 13 New Toll Road Projects to Be Completed
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Bank Indonesia Urges Gov't to Be More Selective in Infrastructure Projects
The central bank of Indonesia (Bank Indonesia) believes that the Indonesian government needs to make a more careful selection in terms of infrastructure development projects in order to curtail the big amount of imports that put pressure on the country's current account balance and rupiah exchange rate.
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Indonesia's Rank in the Logistics Performance Index Improves
Latest Columns Infrastructure
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Infrastructure Indonesia: Jakarta-Surabaya Railway & Patimban Seaport
After Japan was disappointed by not being awarded the contract to build a high-speed railway between Indonesia's capital city of Jakarta and Bandung (West Java), the Indonesian government now plans to offer the revitalization of the northern Java railway to Japan. Another project that is expected to be offered to Japan is the Patimban seaport project in Subang (West Java). Indonesian President Joko Widodo is currently in Japan for a two-day visit to attend the Group of Seven summit on invitation of Japanese Prime Minister Shinzo Abe.
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Infrastructure Development in Indonesia: $450 Billion Required
It is estimated that Indonesia will need some USD $450 billion in funds to finance the government's infrastructure development plans for the 2015-2019 period. However, through the state budgets the government can only deliver USD $230 billion, or roughly 50 percent of required funds. The remainder should originate from the private sector (30 percent of total funds) and state-controlled enterprises (20 percent). However, is it likely that the private sector (both foreign and domestic) is to come up with USD $141 billion for investment in infrastructure up to 2019?
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Impact of Indonesia's Infrastructure Development on Property Sector
With the Indonesian government showing its commitment to push for infrastructure development, the property sector of Indonesia is expected to get a boost as infrastructure development opens access to new areas. For example, Indonesia's first high-speed train project that is to connect Jakarta and Bandung (in West Java) is expected to give rise to new economic centers and cities along the 142 kilometers-long railway. Moreover, existing property in the proximity of a new infrastructure project should lead to significantly rising property prices.
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Indonesia Plans to Offer 10 Toll Road Projects to Investors
The Indonesian government plans to offer 10 toll road projects - with a total length of 520.83 kilometers - to investors before the end of the year. The projects are estimated to have a total value of IDR 109.58 trillion (approx. USD $8.3 billion). The offering of these projects are in line with the government's efforts to boost infrastructure development across the country. Such development will enhance inter and intra island connectivity, thus curbing the nation's high logistics costs and offer a more attractive investment climate to (potential) investors.
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Infrastructure Indonesia: Light Rail Transit (LRT) in Palembang
Two state-controlled companies (both listed on the Indonesia Stock Exchange) are expected to feel the positive impact of the light rail transit (LRT) in Palembang (South Sumatra), a transportation project currently under construction. These two companies are construction firm Waskita Karya and cement producer Semen Baturaja. These two companies are heavily involved in the LRT project that is estimated to cost around USD $520 million. This LRT track is supportive infrastructure for the 2018 Asian Games, to be held in South Sumatra in August 2018.
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Foreigners Need Rep Office or JV for Construction Work in Indonesia?
Indonesia's economic growth in the first quarter of 2016 was rather disappointing at 4.92 percent (y/y), below analyst estimates that averaged around 5 percent (y/y), due to slowing household consumption, private investors being in a wait-and-see mode, and relatively weak government spending (a usual phenomenon at the year-start). Indonesia's construction sector also grew weakish in Q1-2016. However, the construction sector still has good prospects in the years ahead on the back of the government's infrastructure projects.
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Indonesia in April: State Budget & 7-day Reverse Repurchase Rate
If we look back on the month of April, two important matters - related to the economy - occurred in Indonesia this month: (1) in the first week of April, the Indonesian government managed to complete the Revised 2016 State Budget (RAPBN-P 2016), and, one week later, (2) the central bank (Bank Indonesia) announced it will adopt a new benchmark monetary tool per 19 August 2016 - the so-called seven-day reverse repurchase rate - that is to replace the existing BI rate (which fails to influence market liquidity effectively).
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Bank Negara Indonesia (BNI) to Thrive on Infrastructure Credit Growth?
Bank Negara Indonesia (BNI), one of the leading banks in Indonesia, is expected to maintain rising net profit figures in the years ahead due to its decision to focus on (corporate) credit disbursement for domestic infrastructure development projects. In fact, according to RHB OSK Securities, BNI may become the state-controlled bank that benefits most from the government decision to raise its infrastructure budget to IDR 313.5 trillion (approx. USD $24 billion) in the 2016 State Budget. Last year, growth of credit disbursed by BNI to infrastructure projects climbed 116.2 percent (y/y). This year infrastructure credit may grow by another 19 percent.
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Non-Optimal Public Spending on Infrastructure Development in Indonesia
Public spending on infrastructure development in Indonesia is not optimal. Sofyan Djalil, Indonesia's National Development Planning Minister as well as Head of the National Development Planning Agency (Bappenas), says immature and non-integrated planning between ministries and other government agencies as well as between the central and regional governments cause inefficient and non-optimal infrastructure spending. Non-optimal infrastructure development implies that Indonesia's overall economic growth as well as social development cannot achieve its full potential.
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Waskita Karya: Right Company, Right Time to Focus on Toll Road Construction
Construction company Waskita Karya is expected to be among the main beneficiaries of the multi-year Trans-Java toll road project. The company, in which the Indonesian government owns a 68 percent stake, has been assigned to develop six (out of a total of 19) sections of the Trans-Java toll road including the sections Pemalang-Batang, Solo-Ngawi and Ngawi-Kertosono. Waskita Karya's participation in this project will not only strengthen the company's investment portfolio in Indonesia's toll road sector but will also imply rising precast concrete sales of its subsidiary Waskita Beton Precast (established in 2013).
Associated businesses Infrastructure
- Adhi Karya
- AKR Corporindo
- Astra International
- Bakrie & Brothers
- Bosowa Corporation (Private)
- Holcim Indonesia
- Indocement Tunggal Prakarsa
- Jasa Marga
- Lippo Cikarang
- Nusantara Infrastructure
Other Tags
- Rupiah (1096)
- Indonesia Stock Exchange (758)
- Inflation (667)
- GDP (630)
- Bank Indonesia (607)
- Federal Reserve (534)
- Jakarta Composite Index (505)
- China (448)
- IHSG (412)
- BI Rate (404)
Today's Headlines
- Developing an Electric Vehicle Ecosystem in Indonesia; Integrating the Upstream & Downstream Sectors
- Trade Balance of Indonesia: Impact of Palm Oil Export Ban Felt Heavily in May 2022
- Indonesia’s Age-Old Energy Subsidy Dilemma; Government Adds USD $20 Billion to 2022 Budget
- New Report Out: Indonesia’s Age-Old Energy Subsidy Addiction - May 2022
- Gross Domestic Product (GDP); Indonesia Starts 2022 with a Sound Economic Growth Rate