Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Indonesia Investments' Newsletter of 22 November 2015 Released

    On 22 November 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as updates on Indonesia's trade balance, the interest rate environment, infrastructure development, global bonds, IPOs on the Indonesia Stock Exchange, Islamic banking, and much more.

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  • Construction Firm Adhi Karya Thriving on Indonesia's Infrastructure Push

    Construction Firm Adhi Karya Thriving on Indonesia's Infrastructure Push

    Indonesian publicly-listed construction firm Adhi Karya is expected to be one of the main beneficiaries of the government's push for infrastructure development across the archipelago. Adhi Karya is for 51 percent government-owned and therefore has close ties with the government. In the first ten months of 2015 Adhi Karya clinched IDR 10.6 trillion (approx. USD $774 million) worth of new contracts, up 100 percent from contracts won in the same period last year. Nearly half of these contracts involve projects (partly) financed by the central or local governments' budgets.

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  • Bank Indonesia Expects GDP Growth at Lower End of Target Range in 2015

    Bank Indonesia Expects GDP Growth at Lower End of Target Range in 2015

    The central bank of Indonesia (Bank Indonesia) expects the country's economic growth to come in the lower end of its 4.7-5.1 percent (y/y) gross domestic product (GDP) growth target range for full-year 2015. Bank Indonesia Governor Agus Martowardojo expects to see accelerated economic growth in the last quarter of the year (from the preceding quarter) due to increased government spending and investment. In the second quarter of 2015, Indonesia's economy expanded at the slowest pace in six years (+4.67 percent y/y), then accelerating to 4.73 percent (y/y) in the following quarter.

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  • IPO of Indonesia Pondasi Raya (Indopora) on the Indonesia Stock Exchange

    IPO of Indonesia Pondasi Raya (Indopora) on the Indonesia Stock Exchange

    Construction firm Indonesia Pondasi Raya plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in December 2015. The company, better known as Indopora, aims to raise around IDR 530 billion (approx. USD $39 million) by offering 303 million shares, or 15.1 percent of its paid-up capital, at a price ranging between IDR 1,280 and IDR 1,920 per share. This range is based on a price-to-earnings ratio of 8 to 12 times. Kurnia Salim, Head of Institutional Business at Yuanta Securities Indonesia, said Indopora is projected to collect IDR 333 billion (approx. USD $25 million) in net profit in 2016.

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  • Infrastructure Development Indonesia: Hotel Construction to Grow in 2016

    Infrastructure Development Indonesia: Hotel Construction to Grow in 2016

    In line with rising tourism in Indonesia, the value of hotel construction in Southeast Asia's largest economy is expected to grow 16 percent to IDR 21 trillion (approx. USD $1.6 billion) in 2016. Most of the new projects - roughly 21 percent - are located in the Greater Jakarta area. Besides tapping the tourism potential, hotel developers also want to tap the business potential, meaning that due to expected accelerated economic growth in 2016, there will arrive more foreign businessmen in Indonesia to attend meetings and other activities, particularly as the ASEAN Economic Community comes online.

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  • Company Profile Semen Indonesia: Preparing to Accelerate Growth

    Company Profile Semen Indonesia: Preparing to Accelerate Growth

    Sales of Semen Indonesia, Indonesia's leading cement producer, are expected to remain stagnant in 2015 despite recently rising cement demand due to the kick off of various government-led infrastructure projects. In the January-October 2015 period, the company's cement sales fell 2 percent compared to sales in the same period last year. On a positive note, Semen Indonesia's cement sales in October surged 10 percent to 2.7 million tons compared to the same month one year earlier. But with two months remaining it is not expected that the company's sales will significantly rise from last year's sales (26.6 million tons).

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  • Indonesia's 7th Economic Stimulus Package: Focus on the Village Economy

    Indonesia's 7th Economic Stimulus Package: Focus on the Village Economy

    The government of Indonesia is currently preparing the seventh economic policy package. Through this new package it aims to boost people's purchasing power by focusing on the village economy (ekonomi desa). The package will have two main centers of focus: (1) making the use of village funds - disbursed by the central government - more effective, and (2) improving logistics at the village level. Edy Putra Irawadi, Indonesian Deputy Minister for Industry and Trade, said these new policies will boost people's purchasing power, especially at the village level.

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  • Cement Sales in Indonesia Accelerate on Kick Off Infrastructure Projects

    Cement Sales in Indonesia Accelerate on Kick Off Infrastructure Projects

    According to the latest data from the Indonesian Cement Association (ASI), Indonesia's cement sales climbed 10.7 percent year-on-year (y/y) to 6.4 million tons in October 2015 as government-related infrastructure development has picked up in the second half of the year (cement sales only contracted on the island of Kalimantan in October). Cement sales are an interesting indicator as they provide valuable information about the country's household consumption and investment in property and infrastructure sectors.

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  • Economic Policy Package Indonesia: Bonded Zones & Import Tax Cut

    Economic Policy Package Indonesia: Bonded Zones & Import Tax Cut

    The second installment of Indonesia's September economic policy package, unveiled on Tuesday (29/09), received a warmer response from market participants compared to the first one (released on 9 September), evidenced by rebounding stocks and a stronger rupiah rate yesterday. Indonesia's latest policy package involves interest rate tax cuts for exporters, the speeding up of investment licensing for investment in industrial estates, and a relaxation of taxes on imports of capital goods in industrial estates and in the aviation industry.

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Latest Columns Infrastructure

  • 20 Japanese Food and Beverage Companies Plan to Invest in Indonesia

    20 Japanese Food and Beverage Companies Plan to Invest in Indonesia

    A total of twenty Japanese companies engaged in the food and beverage industry are exploring investment opportunities in Indonesia. According to research conducted by the Japan International Cooperation Agency (JICA), the food and beverage industry of Indonesia is regarded as a lucrative investment opportunity by these companies. If realized, these foreign direct investments could be worth between USD $400 million to USD $1 billion. However, JICA’s research did not mention any names of the Japanese companies.

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  • Indonesia Vulnerable to Land Disputes as Few Plantation Estate is Registered

    70% of Indonesian Plantation Estate Unregistered; Vulnerable to Land Disputes

    The plantation sector of Indonesia is vulnerable to land disputes. Noor Marzuki, a Director at the National Land Agency (Badan Pertanahan Nasional, or BPN), a non-departmental government institution, said that currently only 30 percent of Indonesia's total plantation estate area has been registered at the BPN. This implies that 70 percent of Indonesian plantation estates are unregistered and thus susceptible to land conflicts. The total size of Indonesia's plantation estate area is 120 million hectares.

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  • What are the Best Performing Indonesian Stocks so Far in 2014?

    What are the Best Performing Indonesian Stocks so Far in 2014?

    Regarding stock trading on the Indonesia Stock Exchange, investors who focused on property, banking and infrastructure stocks have made the highest profit so far in 2014. Although all sectoral indices that are contained within the benchmark stock index of Indonesia, known as the Jakarta Composite Index (abbreviated IHSG) have shown a good performance, the three aforementioned sectoral indices stand out as the country's top performers. Indonesia's IHSG has risen 16.14 percent between 1 January and 26 May 2014.

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  • Indonesian Cement Sales Decline in April 2014 due to Legislative Election

    Indonesian cement sales fell 0.4 percent (year-on-year) to 4.52 million tons in April 2014. The decline in cement sales was the result of the country’s legislative election that was held on 9 April 2014 as consumers bought few building materials during the campaign period. Head of the Indonesian Cement Association (ASI) Widodo Santoso stated that a number of large infrastructure projects are currently being tendered and are thus unable to boost domestic cement sales yet.

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  • World Bank: East Asia Pacific at Work: Employment, Enterprise & Well-Being

    World Bank Report "East Asia Pacific at Work: Employment, Enterprise and Well-Being"

    As rapid economic development has pushed the percentage of people working in most East Asian countries to among the highest in the world, policy makers should enact labor regulations and social protection policies to benefit all workers, including those in the large informal economy, according to a new World Bank report, East Asia Pacific at Work: Employment, Enterprise and Well-Being (released on 8 May 2014). Current regulations, however, favor salaried, prime-age males at the expense of women and youth.

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  • Jakarta's Giant Sea Wall & National Capital Integrated Coastal Development

    The Indonesian government is still studying the feasibility study for the National Capital Integrated Coastal Development (NCICD) masterplan. The NCICD masterplan, a joint project between the governments of Indonesia and the Netherlands, aims to protect the capital city of Jakarta against floods caused by high tides and faciliates sustainable development of Jakarta. The masterplan is developed by a consortium headed by Witteveen+Bos (main contractor) and Grontmij, with subconsultants KuiperCompagnons, Deltares, Ecorys and Triple-A.

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  • Fitch Ratings Survey Shows Optimistic View on Indonesian Economy

    Fitch Ratings Survey Shows Optimistic View on Indonesian Economy

    Fitch Ratings, one of the three major global credit rating agencies, said that its latest annual survey on economic prospects and the business climate in Indonesia indicates an optimistic view. Respondents in the survey, mostly CEOs and Division Heads at financial institutions, companies, government and media, were asked 11 questions about the Indonesian economy, reformation and prospects for the next five years. Andrew Steel, Managing Director Head of Asia Pacific Corporate Ratings Group, presented results of the survey.

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  • Without Reform, Indonesia's Oil Imports Reach 1.6 Million Bpd by 2020

    Without Reform Indonesia's Oil Imports Reach 1.6 Million Bpd by 2020

    Imports of oil will accelerate to 1.6 million barrels per day (bpd) by 2020 if fuels continue to be subsidized by the Indonesian government. This development will seriously burden Indonesia's trade balance (and current account). In 2013, Indonesia posted a trade deficit of USD $12.6 billion in the oil & gas sector. Due to improved performance in the non-oil & gas sector, the overall trade deficit was kept at USD $4.06 billion. Besides placing downward pressure on the rupiah exchange rate, expensive subsidies also burden the state budget.

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  • Tourism in Indonesia: Terrorism, Infrastructure and Asean Common Visa

    Tourism in Indonesia: Terrorism, Infrastructure and Asean Common Visa

    Tourism in Indonesia has posted impressive growth rates in recent years. This development is due to the fact that Indonesia has plenty of beautiful sites and cultural traditions to offer to foreign (and domestic) tourists, improved airline accessibility to Indonesia, and enhanced focus on promotional campaigns in foreign countries. Lastly, and not unimportantly, there have been no violent terrorist attacks in recent years. In the 2000s, a vicious terrorist attack always resulted in a temporary drop in foreign tourist arrivals.

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  • Infrastructure Development Update Indonesia: Trans-Sumatra Highway

    In 2015, Indonesia's Ministry of Public Works will start with the land acquisition process for the construction of the Trans-Sumatra Highway. This highway is a 2,732.2 kilometers-long toll road connecting Banda Aceh in the north of Sumatra to Bandar Lampung in the south through 23 routes that connect ten provinces. The total land area that needs to be acquired is roughly 218,976 million m² and is expected to cost around IDR 15 trillion (USD $1.3 billion). By 2025, construction of the project should be finished.

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