Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Indonesia's May Cement Sales Up 6.2%, Next Month's Sales Could Fall

    Indonesia's cement sales rose 6.2 percent (y/y) to 5.1 million tons in May 2016, the highest monthly figure so far in 2016. As the property sector of Indonesia remains subdued amid sluggish demand and development, growth in cement sales is regarded to be the result of infrastructure development. Data from the Indonesian Cement Association (ASI) show that Indonesia's cement sales total 24.1 million tons in the first five months of 2016, up 3.9 percent (y/y) from sales in the same period one year earlier.

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  • Infrastructure Indonesia: Jakarta's New Priok Port (Kalibaru) Opened Soon

    State-owned Pelindo II, the company that is involved in port services across ten Indonesian provinces, plans to conduct another test related to the New Priok Port on 2 July 2016. Full commercial operations are scheduled to start on 15 July 2016. The New Priok Port is one of the large government infrastructure projects involving the construction of a new port (an extension of the Tanjung Priok) in North Jakarta in order to tackle Indonesia's severe logistics trouble, while bringing Indonesia's port facilities on par with other world-class ports such as Singapore.

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  • Investment Opportunities in Indonesia's Retail Sector: Lucrative Potential?

    Indonesia managed to enter the top five in the Global Retail Development Index, reflecting the strength and potential of the nation's retail sector. In the 2016 edition of the index, compiled by global consulting company AT Kearney, Indonesia jumped to fifth position (from 12th in the 2015 edition). The Global Retail Development Index measures the attractiveness of the retail sector in 30 developing economies as well as identifying investment opportunities in these markets. China remains number one in the ranking, followed by India, Malaysia and Kazakhstan.

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  • Indonesia's Ranking in A Selection of International Indexes

    How does Indonesia rank internationally in terms of happiness, human development, global innovation, and global competitiveness? Below we present a number of global rankings. Generally, Indonesia is ranked among the lower-medium segment, implying the nation has a long way to go before becoming an advanced economy.

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  • Steel Industry Indonesia: Infrastructure Projects & China Production Cuts

    After a three-year slowdown, the steel industry of Indonesia is showing some positive developments supported by government-led infrastructure projects in Indonesia and the rising global steel price. The price for (benchmark) hot rolled coil has surged 47 percent since the start of 2016 to USD $485 per ton (May 2016 delivery). In late 2015 the price of hot rolled coil was as low as USD $265 per ton. Moreover, the mandatory usage of locally-manufactured steel for the infrastructure projects will have a positive impact on Indonesia's steel industry.

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  • Japan & Indonesia to Partner for Construction of Patimban Seaport

    Japanese Prime Minister Shinzo Abe informed Indonesian President Joko Widodo that Japan is eager to be involved in the USD $3 billion Patimban deep seaport in Subang (West Java). This seaport is envisaged to become an international seaport with a 7.5 million twenty-foot equivalent units (TEU) capacity. President Widodo is in Japan for a two-day visit (26-27 May). On the sidelines of the Group of Seven summit, Widodo and Abe discussed several projects: the Patimban seaport, the revitalization of the northern Java railway, and the Batang power plant.

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  • Weak Infrastructure Blocks Investment in Indonesia's Cold Storage Industry

    The cold storage industry of Indonesia needs IDR 12 trillion (approx. USD $902 million) of additional investment in order to raise installed capacity to a sufficient level. Currently, Indonesia still has to cope with a deficit in terms of the availability of cold storage facilities. This causes a problem for the preserving as well as the transportation of (processed) seafood, chicken meat, fruits and vegetables. At the start of 2016 the Indonesian government announced it would open the cold storage industry to foreign investment for the full 100 percent. However, investment realization has been limited.

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  • No Investment Grade Yet but S&P Positive about Indonesia

    Global credit rating agency Standard & Poor's (S&P) appreciates the policy reforms that have been conducted by the Indonesian government because these changes lead to more openness as well as to enhanced competitiveness. Apart from cutting costly energy subsidies (and redirecting a large chunk of available funds to infrastructure development) the government also unveiled 12 economic policy packages since September 2015 (while more packages are in the pipeline) that include matters such as tax incentives and deregulation (aimed at boosting investment).

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  • Some Thoughts on the Performance of Indonesia's Stock Market in 2016

    The stock performance of Indonesian companies listed on the Indonesia Stock Exchange (IDX) in 2016 is expected to be better than last year's performance. One of the factors that supports this assumption is Indonesia's accelerating economic growth. Most - if not all - analysts expect GDP growth to rebound from its six-year low of 4.79 percent (y/y) in 2015. Indonesia's Q4-2015 GDP growth at 5.04 percent (y/y) was already promising (supported by government spending). In 2016 a growth pace in the range of 5.0 - 5.2 percent (y/y) should be possible. Although the link is not perfect, there is a correlation between a nation's stock market and its GDP growth.

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  • Toll Road Development Indonesia: State-Owned Companies Take Over

    Two of Indonesia's state-controlled companies will acquire at least 11 toll road concessions (with a total length of 525.7 kilometers and combined value of IDR 53.5 trillion or approx. USD $4.1 billion) from the private sector in the next two years. Toll road operator Jasa Marga is expected to acquire four toll road projects with a total length of 262.3 kilometers, estimated to be worth IDR 18.4 trillion (approx. USD $1.4 billion). Meanwhile construction firm Waskita Karya plans to acquire seven toll road projects (with a combined length of 263.4 kilometers), take-overs estimated to require IDR 35.1 trillion (approx. USD $2.7 billion) of investment.

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Latest Columns Infrastructure

  • Rising Logistics Costs after Higher Prices of Subsidized Fuels in Indonesia

    It has been more than a week since the Indonesian government raised its subsidized fuel prices (Pertalite, Pertamax, and automotive diesel fuel) by an average of slightly over 26 percent. One of the most interesting things is to see whether this decision leads to overall growing prices in Indonesian society. After all, fuel is crucial for the movement of goods and services, and has a significant impact on logistics costs.

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  • Latest Indonesia Investments Report Out - Introduction October 2021

    When writing this introduction, the 2021 United Nations Climate Change Conference (also known as COP26) had just started in Glasgow (Scotland). Indonesian President Joko Widodo is among the delegates who is slated to speech about the importance of preventing – and adapting to – climate change, and to seek ways to obtain climate financing as Indonesia is unable to finance the huge and costly energy transition by itself.

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  • Infrastructure in Indonesia; Jakarta-Bandung High-Speed Train Project Needs More Time & Money

    On 30 September 2021 Indonesia’s House of Representatives (Dewan Perwakilan Rakyat, DPR) approved the 2022 State Budget (Anggaran Pendapatan dan Belanja Negara, APBN) that had previously been proposed by the cabinet. And with 14.2 percent of total government spending being reserved for infrastructure development in the 2022 State Budget, the Indonesian government confirms that it remains committed to much-needed infrastructure development.

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  • Airports in Indonesia; Yogyakarta International Airport Officially Opened

    On 28 August 2020 Indonesian President Joko Widodo officially opened Yogyakarta International Airport (YIA), a brand new airport that is located in Kulon Progo in the Special Region of Yogyakarta; a region known as one of Indonesia’s main tourism centers. Many in fact call Yogyakarta the ‘heart and soul of Indonesia’.

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  • September 2020 Report Indonesia Investments; Infrastructure in Focus

    Across the world, concern over the COVID-19 pandemic grew in September 2020 as the number of new COVID-19 cases continued to rise rapidly. Worldwide, at the end of September 2020, some 34 million people have been infected with the virus, while more than one million people have died after contracting the virus.

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  • The Role of State-Owned Enterprises in the Indonesian Economy

    One characteristic of the Indonesian economy is that the state-owned enterprises (SOEs) play an important role in this USD $1.0 trillion economy. They not only play an important role because some of them rank among Indonesia’s biggest companies (in terms of profit, sales and assets), thereby generating plenty of money for the government (in the form of tax revenue or dividend) while at the same time creating jobs for millions of Indonesians.

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