Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • What is Indonesia's Progressive Tax on Idle Land Ownership?

    Sofyan Djalil, Indonesian Minister of Agrarian Affairs and Spatial Planning, says the progressive tax on land that is deemed idle will not disturb the investment climate of Indonesia because industrial estates and land that has a clear development purpose are exempted from this tax (this includes land destined for property development projects). Through the progressive land tax the government wants to combat speculative land buying, something that has become a problematic phenomenon in Indonesia.

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  • Japan & Indonesia to Cooperate on Key Infrastructure Projects

    Indonesian President Joko Widodo and Japanese Prime Minister Shinzo Abe will witness the signing of a joint study (a cooperation between Indonesia's Transportation Ministry and the Japan International Cooperation Agency, or JICA) into the medium speed railway - connecting Jakarta to Surabaya - on 15 January 2017 at the Presidential Palace in Bogor. Besides the medium speed railway, Widodo and Abe will also discuss funding for a deep-sea port project in Patimban (West Java) as well as contracts for the Masela oil & gas block in eastern Indonesia.

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  • Infrastructure Indonesia: Balikpapan-Bontang Toll Road Update

    The Balikpapan-Samarinda toll road on the eastern coast line on the island of Kalimantan (in the province of East Kalimantan) will be extended to include the city of Bontang. During a visit to Balikpapan at the start of the week, Indonesian President Joko Widodo confirmed the extension plan. It implies that the project will more than double in length. The distance between Balikpapan and Samarinda is around 99 kilometers. However, from Samarinda further northeastwards to Bontang stretches across 116 kilometers.

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  • Railways in Indonesia: Jakarta-Surabaya Medium-Speed Train

    Budi Karya Sumadi, Indonesian Minister of Transportation, said the preliminary study into the medium-speed Jakarta-Surabaya railway could be completed before the end of 2016. In a bid to enhance connectivity and curtail logistics costs the government of Indonesia encourages the construction of a medium-speed railway linking Indonesia's capital city of Jakarta (on the western part of Java) to the nation's second-largest city of Surabaya in East Java. The preliminary study was started three weeks ago.

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  • Infrastructure Budget Indonesia Rises in 2017 State Budget

    In the 2017 State Budget the Indonesian government allocated IDR 387.3 trillion (approx. USD $29.8 billion) for infrastructure development, up from IDR 317.1 trillion in the 2016 budget. Since Joko Widodo became Indonesian President in 2014 the infrastructure budget of Indonesia has been raised rapidly, showing that Widodo kept his pledge and is serious about constructing roads, bridges, airports, harbors, and railways in an effort to enhance connectivity in Southeast Asia's largest economy, reduce logistics costs and enforce the multiplier effect.

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  • Ease of Doing Business in Indonesia Improving, Time for Complacency?

    Indonesia's improving ranking in the World Bank's Ease of Doing Business Index shows that the government's reform efforts have had a positive effect. However, there is no time for complacency as most industries in Indonesia continue to lack competitiveness compared to regional counterparts, while many entrepreneurs in Indonesia continue to complain about (the lack of) legal certainty as well as (the lack of) good coordination and cooperation between Indonesia's central and regional governments (in terms of policy implementation).

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  • Steel Industry Indonesia: Local Steel Gaining Market Share

    The Indonesian Iron and Steel Association (IISIA) predicts that steel sales in Indonesia will grow nearly 9 percent (y/y) to 12.5 million tons in 2016, from 11.5 million tons in 2015, on the back of new infrastructure projects. IISIA Director for International Relations Purwono Widodo adds that the market share of locally-produced steel is expected to rise from 40 percent to 60 percent. This is a positive development because the steel market in Indonesia has been dominated by imports (mostly from China).

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  • Jean-Claude Trichet on the Indonesian Economy; New Policy Packages

    Jean-Claude Trichet, president of the European Central Bank (ECB) from 2003 to 2011, says the strategy of Indonesian President Joko Widodo to boost overall economic growth (and social development) in Southeast Asia's largest economy through infrastructure development is the correct strategy. Although this strategy requires time, it will result in structural long-term growth. Trichet spoke at an international seminar in Jakarta, themed "Challenges to Global Economy", organized by the Indonesian Deposit Insurance Company (LPS) to mark its 11th anniversary.

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  • Indonesia Infrastructure & "One Belt, One Road" Investment Conference

    Indonesia Infrastructure & "One Belt One Road" Investment Conference 2016 (IIC 2016) will be held on October 20th and 21st 2016 in Jakarta, Indonesia. The conference will be a stage of first-hand infrastructure investment information, a bridge of networking and discussing between local project leaders and investors, and will involve a full program of high quality international keynote speakers to give a global and local perspective on Indonesia infrastructure construction.

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  • Port Infrastructure Indonesia: 1st Terminal New Priok Port Completed

    Indonesian President Joko Widodo witnessed the inauguration of the first newly built container terminal, part of the New Priok Port, an extension of Indonesia's busiest port (Tanjung Priok) in North Jakarta, on Tuesday (13/09). At this occasion Widodo urged the developers of the New Priok Port to speed up construction of the port so that phase one can be completed by 2019. The New Priok Port, consisting of three phases, will relieve the overloaded systems at the existing Tanjung Priok port and bring Indonesia's port facilities on par with other world-class ports.

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Latest Columns Infrastructure

  • Infrastructure Development Indonesia: Gaining Momentum in 2016

    After having grown rapidly in the years 2010-2013, infrastructure development in Indonesia lost its momentum in 2014. This was due to limited available government funds, uncertainty caused by the legislative and presidential elections, and the nation's slowing economic growth. After Joko Widodo became Indonesia's seventh president in October 2014, it was expected that infrastructure development would revive. However, it didn't. But Widodo made one important move by seriously reducing energy subsidies, hence making more funds available for infrastructure development.

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  • China to Build Indonesia's High-Speed Railway Jakarta-Bandung Project

    Last week it was officially announced that China Railway International Co. Ltd, subsidiary of China Railway Group Ltd, together with a consortium consisting of Indonesian state-owned enterprises (which include Pilar Sinergi BUMN Indonesia, Wijaya Karya, Kereta Api, and Jasa Marga) will build Indonesia's first ever high-speed railway, valued at over USD $5 billion, between the capital city of Jakarta and Bandung (in West Java), a route that stretches for approximately 150 km.

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  • Indonesia Accepts China's Proposal for High-Speed Railway Jakarta-Bandung

    China has won a contract to build a high-speed railway between Indonesia's capital city of Jakarta and Bandung (West Java), beating Japan along the way. Earlier this month, the Indonesian government unexpectedly decided to decline proposals from Japan and China for the construction of a multi-billion high-speed railway between both cities as these proposals included financial assistance or a guarantee from the Indonesian government. Moreover, Indonesia considered a super-fast train unnecessary on the relatively short route (150 km).

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  • Economic Policy Package Indonesia: What are the Stimulus Measures?

    In response to the ailing global economy, Indonesian President Joko Widodo has unveiled a new economic policy package that aims to boost economic growth of Indonesia amid a highly uncertain global context. On Wednesday (09/09), Joko Widodo (often called Jokowi) provided some details about the first phase of this new stimulus package during a speech at the State Palace in Jakarta.

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  • Update Infrastructure Development Indonesia; Are there Positive Signs?

    Government-led infrastructure development is regarded by most analysts and policymakers as the key to overcome Indonesia’s slowing economic growth as infrastructure development will cause a multiplier effect in the economy (triggering growth in other industries such as cement and property while job availability grows accordingly). In the second quarter of 2015, Indonesia’s gross domestic product (GDP) growth slowed to 4.67 percent (y/y), a six-year low.

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  • Indonesia 8th Largest Shareholder Asian Infrastructure Investment Bank

    Indonesia is the eight-largest shareholder within the newly established Asian Infrastructure Investment Bank (AIIB). The Indonesian Finance Ministry announced earlier this week that the country will invest USD $672.1 million in the AIIB over the next five years. The AIIB is a new multilateral financial institution (initiated by China) that is to provide funds for infrastructure development projects in the Asia Pacific region. Initially, the AIIB has an authorized capital of USD $50 billion. This is expected to grow to USD $100 billion.

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  • Tourism in Indonesia: Strong Growth Visitor Arrivals on Bali

    A total of 1,555,609 foreign tourists have visited the island of Bali, the most popular tourist destination in Indonesia, in the first five months of 2015, an 11.3 percentage point growth from the same period last year. Given that the number of foreign tourists usually peaks in the period June-September it is most likely that the government’s target of welcoming 4 million foreign tourists on Bali in 2015 will be achieved, or exceeded. Most tourists that visit Bali originate from Australia, China and Japan.

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  • Indonesian Cement Sales Plunge Most in 6 Yrs, Hope on Infrastructure Projects

    The latest data from the Indonesian Cement Association (ASI) show that cement consumption in Indonesia declined 3.8 percent (year-on-year) to 22.9 million tons in the first five months of 2015 (from 23.8 million tons of cement in the same period last year). This fall is the steepest decline in Indonesian cement consumption since 2009 when demand plunged nearly seven percent (y/y) amid the impact of the global financial crisis. The current decline is caused by the country’s economic slowdown and falling commodity prices outside Java.

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  • Indonesian Stocks & Rupiah: Gaining on S&P Rating Outlook Upgrade

    Although most emerging market stocks fell, Indonesian stocks and the rupiah showed a solid performance on Thursday (21/05). The rupiah appreciated 0.40 percent to IDR 13,122 per US dollar according to the Bloomberg Dollar Index, while the benchmark stock index of Indonesia (Jakarta Composite Index) rose 0.39 percent to 5,313.21 points. Most emerging stocks fell due to weak data from China (despite a series of stimulus). However, Indonesian stocks were supported by news about its credit rating and dividend announcements.

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  • Obstacles in Indonesia’s Investment Climate: A Chinese Perspective

    Indonesia is not the easiest place to invest for foreign investors. This is reflected by the World Bank's Doing Business 2014 index in which Indonesia ranks 120th. In a business forum, held last week in Beijing, Chinese businessmen expressed a number of matters that blocked or seriously delayed their investments in Indonesia. For Indonesia (both domestic and foreign) investment realization, particularly in infrastructure, is important as investments is considered the main driver for the country’s economic growth in 2016.

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