Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • What Are Indonesia's Priority Infrastructure Projects in 2016-2019?

    What Are Indonesia's Priority Infrastructure Projects in 2016-2019?

    There are 30 projects that have been selected as priority infrastructure projects in Indonesia for the period 2016-2019. In total, all these projects together will require some IDR 5,519 trillion (approx. US $415 billion) worth of investment. However, the Indonesian government (including state-owned enterprises and regional governments) can only come up with IDR 1,400 trillion, or 26 percent of the required funds. The remainder therefore needs to be covered by the private sector. As such, the key for success is fruitful cooperation between the private and public sector (for example through public-private partnerships).

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  • Indonesia Declares Patimban Seaport a National Strategic Project

    Indonesia Declares Patimban Seaport a National Strategic Project

    The central government of Indonesia has officially declared the Patimban Seaport project in Subang (West Java) a national strategic project through Presidential Decree No. 47/2016, signed by Indonesian President Joko Widodo. This declaration implies that the project is regarded a priority project that benefits the economy and society as a whole. The priority status further means that all ministers, government agencies and governors need to support the development of the project.

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  • Infrastructure in Indonesia: Update Trans-Sumatra Toll Road Development

    Infrastructure in Indonesia: Update Trans-Sumatra Toll Road Development

    Indonesian Minister for Public Works and Housing Basuki Hadimuljono doubts that construction of the Trans-Sumatra toll road will be completed by 2019. The minister already informed Indonesian President Joko Widodo about his concern. As usual, the main issue that forms a time-consuming matter in infrastructure projects in Indonesia is land acquisition. And while land prices on Sumatra are relatively cheap, the sheer size of land that needs to be purchased for this toll road makes it a challenging process. Regarding the Trans-Java toll road, on the contrary, Minister Hadimuljono says completion by 2018 is possible.

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

    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

    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?

    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

    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

    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

    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

    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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Latest Columns Infrastructure

  • Infrastructure Development Indonesia: Gaining Momentum in 2016

    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

    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

    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?

    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?

    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 8th Largest Shareholder Asian Infrastructure Investment Bank (AIIB)

    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

    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

    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

    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

    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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