Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • PPP Projects Indonesia: Building with Nature Innovation Program

    PPP Projects Indonesia: Building with Nature Innovation Program

    On Tuesday (03/03) the governments of Indonesia and the Netherlands launched a comprehensive five-year public-private partnership (PPP) for enhancing coastal safety at the northern coastal line of Central Java. By joining forces in this 5 million euro project (financed by the Dutch Sustainable Water Fund), mangrove restoration, small scale hard-engineering, and sustainable land use are to result in reduced erosion risk at the coastal area. Key to the project is the use natural protection to strengthen sustainable coastal engineering.

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  • Infrastructure Projects in Indonesia: Cilamaya Seaport Project

    Infrastructure Projects in Indonesia: Cilamaya Seaport Project

    Indonesian Transportation Minister Ignasius Jonan said that the Cilamaya port project in Karawang (West Java) may be tendered this year to the private sector. The central government is currently engaged in the preparation of the terms of reference (TOR) for the project. Through the construction of the Cilamaya port, which will occupy 2,000 hectares of land some 65 kilometers east of Jakarta, the government aims to reduce the country’s logistics costs and ease traffic at the Tanjung Priok port, the largest Indonesian seaport, in Jakarta.

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  • Government of Indonesia Eager to Limit Investment in Cement Industry

    The Indonesian government wants to limit investment opportunities in the country’s cement industry in an attempt to maintain a healthy business climate. Indonesian Industry Ministry official Harjanto said that Indonesia’s current cement production capacity is more than enough to meet domestic demand. Given that most established cement producers have expansion plans the influx of new cement producers leads to an oversupply thus reducing companies’ profit margins. The nation’s cement production capacity stands at 77 million tons per year.

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  • Indonesia’s Capital City Jakarta at Bottom of Safe Cities Index 2015

    Indonesia’s Capital City Jakarta at Bottom of Safe Cities Index 2015

    In the Safe Cities Index 2015, launched by the Economist Intelligence Unit (EIU), Indonesia’s capital city of Jakarta is ranked at the bottom of the index. The Safe Cities Index, which covers 50 large cities worldwide (selected on factors which include regional representation and availability of data), based its ranking on an average score across four categories: digital security, health security, infrastructure safety and personal safety. In 2014, data from the Jakarta Police showed that 213 out of every 100,000 Jakartans were victims of various crimes.

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  • Indonesia Investments' Newsletter of 25 January 2015 Released

    Indonesia Investments' Newsletter of 25 January 2015 Released

    On 25 January 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 in the last seven days. Most of the topics involve economic matters such as the impact of the Eurozone’s quantitative easing program on Indonesia’s stocks and currency, the global challenges that are being faced by Indonesia, an infrastructure update, international relations, and more.

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  • Positive Structural Change in Indonesia’s Current Account Deficit?

    Positive Structural Change in Indonesia’s Current Account Deficit?

    The current account deficit of Indonesia, which is expected to have improved slightly from 3.3 percent of the country’s gross domestic product (GDP) in 2013 to about 3 percent of GDP in 2014, is forecast to continue to improve in 2015 hence placing less pressures on the rupiah exchange rate and the economy in general. A wide current account deficit makes the country vulnerable to capital outflows in times of global shocks (for example looming higher US interest rates) as the deficit signals that Indonesia relies on foreign funding.

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  • Cement Sales Growth in Indonesia Limited due to Politics & Commodities

     Cement Sales Growth in Indonesia Limited due to Politics & Commodities

    Indonesian cement sales in 2014 reached 59.9 million metric tons, up 3.3 percent from domestic sales in the previous year but below the target that was set by the Indonesian Cement Association (ASI). The ASI targeted a sales growth rate of between 3.5 percent and 4.0 percent year-on-year. This sales target had in fact already been revised down from 6 percent (y/y) due to weak cement sales amid uncertainties brought about by Indonesia’s ‘political year’ (legislative and presidential elections) as well as weak global commodity prices.

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  • Cement Consumption in Indonesia Declines in 2014

    Cement Consumption in Indonesia Declines in 2014

    Growth of cement sales in Indonesia is estimated to have slowed in 2014 amid uncertainties brought about by the ‘political year’ (referring to the fragmented results of the country’s legislative and presidential elections and which led to the postponement of various infrastructure projects and other investments in Indonesia). Other factors that impacted negatively on cement sales this year were the central bank’s higher interest rate policy, low commodity prices and weakening purchasing power.

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  • Indonesia Investment Coordination Board Targets 15% Investment Growth

    Government investment service agency Indonesia Investment Coordinating Board (BKPM) targets IDR 524 trillion (USD $42 billion) worth of investments in 2015, a 15 percent growth from estimated investment realization this year (IDR 450 trillion). BKPM is optimistic that after the ‘political year’ of 2014 (due to the legislative and presidential elections) the new government will push for the implementation of various infrastructure projects such as toll roads, harbours and airports, thus making Indonesia more attractive to foreign investors.

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  • Sea Toll Road of Indonesia will Reduce Country's Logistics Costs Sharply

    The sea toll road, a maritime program initiated by Indonesian President Joko Widodo, may reduce the country’s logistics costs by 10 to 15 percent, said Secretary of the Expert Team of the National Logistics System, Nofrisel. Currently, between 18 and 22 percent of companies’ production costs in Indonesia are absorbed by logistics costs, particularly due to expensive transportation costs, hence seriously reducing competitiveness of Indonesian companies. In peer regional countries this figure is below ten percent.

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Latest Columns Infrastructure

  • World Bank Report: How Can Indonesia Avoid the Middle Income Trap?

    World Bank Report: How Can Indonesia Avoid the Middle Income Trap

    On Monday (23/06), the World Bank released its latest analysis regarding the Indonesian economy. In its report, titled ‘Indonesia: Avoiding the Trap’, the World Bank states that Indonesia needs to implement a six reforms in priority areas in order to avoid the so-called middle income trap (referring to the situation where a country gets stuck at a certain income level). Without these critical reforms, the country’s economic growth will slow and may not be able to escape the middle income trap.

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  • Presidential Election Indonesia 2014: 2nd Television Debate Jokowi-Prabowo

    Presidential Election Indonesia 2014: 2nd Television Debate Jokowi-Prabowo

    Sunday evening (15/06), the second debate between Indonesia’s two presidential candidates - Prabowo Subianto and Joko ‘Jokowi’ Widodo - was held. This debate was broadcast live on various Indonesian television stations and - once again - managed to become a trending topic on social media. The debate, the theme of which was ‘development of the economy and social welfare‘, was characterized by a nationalistic and protectionist tone. This tone had already been set by Subianto in the past weeks but now Jokowi also stressed protectionism.

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  • 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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