Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Update 3rd Runway at Indonesia's Soekarno-Hatta Airport

    Update 3rd Runway at Indonesia's Soekarno-Hatta Airport

    State-owned airport services company Angkasa Pura II, which operates airports in the western part of Indonesia, says construction of the third runway of the Soekarno-Hatta International Airport (located just outside Jakarta) will start in April 2017. This new runway, which requires about IDR 2 trillion (approx. USD $150 million) worth of investment, is expected to be ready for use in mid-2018. Soekarno-Hatta International Airport, the country's main port of entrance, is target of an ambitious expansion and renovation program with the aim to boost competitiveness by raising the airport's passenger capacity and flight frequency.

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  • Infrastructure Development Indonesia: New Funding Schemes Required

    Infrastructure Development Indonesia: New Funding Schemes Required

    The government of Indonesia needs to be more aggressive and innovative to find new sources to fund its ambitious infrastructure development program. To achieve its infrastructure targets, the government will need to find ways to entice the private sector because public funds are limited. So far, however, the private sector is hesitant to engage in capital-intensive and long-term investment in a country where the investment climate is not optimal.

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  • Weak Weather Conditions Undermine Indonesia's January Cement Sales

    Weak Weather Conditions Undermine Indonesia's January Cement Sales

    Cement consumption in Indonesia fell to 5.27 million tons in January 2017, down 2.3 percent year-on-year (y/y) from the same month one year ago. This decline was blamed on the intense rainfall in the nation's regions that managed to obstruct progress with various projects. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said the decline in cement demand was seen in nearly all regions, including Sumatra, Java, Kalimantan, and Nusa Tenggara.

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

    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

    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

    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

    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

    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?

    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

    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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Latest Columns Infrastructure

  • Indonesian Gov't Confused: Postpone Power Projects or Not?

    Indonesian Gov't Confused: Postpone Power Projects or Not?

    Based on the latest reports - and contrary to earlier plans - the Indonesian government will not postpone the development of 15,200 MW of power projects. Earlier the government said it wanted to delay various power projects in an effort to curtail imports, thus improve the country's current account balance and ease heavy pressures on the rupiah exchange rate.

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  • Indonesia's Infrastructure Spending Below Average, How Come?

    Indonesia's Infrastructure Spending Below Average, How Come?

    If we take a look at Indonesia's central government spending in the first four months of 2018, then we detect something interesting. Overall, government spending has grown in the January-April 2018 period (compared to the same period one year earlier). However, growth in government spending is led by rising social assistance spending and rising subsidy spending. Meanwhile, growth of infrastructure spending has been much less robust. Does this mean that the Indonesian government has curtailed infrastructure development spending in order to relieve rising pressures on the budget deficit?

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  • Airport Infrastructure Development in Indonesia: Bali & Yogyakarta

    Airport Infrastructure Development in Indonesia: Bali & Yogyakarta

    The tourism industry of Indonesia is one of the most important industries in terms of the nation's foreign exchange earnings. However, compared to its neighboring countries - specifically Singapore, Malaysia and Thailand - Indonesia lags behind in terms of foreign visitor arrivals. This "failure" is partly attributed to the weak state of Indonesia's infrastructure. This includes the lack of enough airports or the lack of enough aircraft and passenger handling capacity at existing airports.

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  • Cement Industry Update Indonesia: Rising Sales in January 2018

    Cement Industry Update Indonesia: Rising Sales in January 2018

    Cement sales were good in January 2018 for Indonesian cement manufacturers, growth that is attributed to rising cement demand on the back of the government-led infrastructure development program, particularly the construction of toll roads. Indonesia's cement consumption rose 9.9 percent year-on-year (y/y) to 5.68 million tons in January 2018.

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  • Indonesian Construction Companies in Focus: Wijaya Karya

    Indonesian Construction Companies in Focus: Wijaya Karya

    Revenue and profit of Wijaya Karya (Wika), one of Indonesia's biggest construction companies, is partly dependent on developments surrounding the Jakarta-Bandung high-speed railway project. Earlier this month, Indonesian President Joko Widodo ordered an evaluation of this railway project, which saw groundbreaking in 2016 but has shown limited progress ever since.

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  • Looking Back at 2017 & Forward to 2018: Widodo's Performance

    Looking Back at 2017 & Forward to 2018: Widodo's Performance

    It was a solid year for the Indonesian economy. The macroeconomic fundamentals of the nation have strengthened due to the hard work of the Indonesian government under the leadership of President Joko Widodo. However, there is no room for complacency as there remain major bottlenecks, while legislative and presidential elections - in which voters can approve or disapprove Widodo's performance - are scheduled for 2019.

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  • New Toll Road Improves Connectivity in North Sumatra Growth Center

    New Toll Road Improves Connectivity in North Sumatra Growth Center

    Last week Indonesian President Joko Widodo inaugurated the 41.7-kilometer Parbarakan-Sei Rampah section of the Medan-Kualanamu-Tebing Tinggi toll road in North Sumatra. This Parbarakan-Sei Rampah section is now the longest piece of toll road on the island of Sumatra and will boost connectivity in the province of North Sumatra.

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  • World Bank Releases October Indonesia Economic Quarterly Report

    World Bank Releases October Indonesia Economic Quarterly Report

    In its latest report, the World Bank stated that Indonesia's macroeconomic fundamentals are solid and have been strengthening amid the central government's eagerness to implement critical structural reforms, while investment growth rose to the highest levels since the last quarter of 2015 (mainly investment in buildings and structures).

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  • Government of Indonesia Supports Development Meikarta Project

    Government of Indonesia Supports Development Meikarta Project

    Indonesian Minister of Home Affairs, Tjahjo Kumolo, made a statement in support of the Lippo Group's controversial Meikarta integrated township project. At the Indonesia Future City & REI Mega Expo 2017 on Thursday (14/09) Kumolo said Indonesia's regional governments should not unnecessarily obstruct private projects that help to develop the regional economy. He cited Meikarta as an example.

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