Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Aviation Infrastructure Indonesia: Passenger Capacity Soekarno-Hatta Airport

    Passenger capacity at Soekarno-Hatta International Airport, Indonesia's busiest airport located just outside Jakarta, is targeted to reach 61 million (per year) by the end of 2017, up 84 percent from a passenger capacity of 33 million passengers currently. Passenger capacity at the airport will rise strongly after the full completion of construction of Terminal 3 as well as the renovations at Terminals 1 and 2. Although Terminal 3 opened in August 2016 construction will continue into 2017 when full passenger capacity (25 million per year) is expected to be reached.

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  • Toll Road Development Indonesia: 11 Investors Compete in Tenders

    The Indonesia Toll Road Authority (in Indonesian: Badan Pengatur Jalan Tol, or BPJT), which is a department within Indonesia's Ministry of Public Works and Housing, says there are 11 investors that compete for four toll road projects. Combined, these four projects are estimated to have a total value of IDR 41.5 trillion (approx. USD $3 billion). The 11 investors - all having passed the prequalification process - are requested to send their proposals for the tender process. Before the end of 2016, the Indonesian government is expected to announce the winners of the tenders.

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  • Soekarno-Hatta International Airport's Terminal 3 Starts Operations

    On Tuesday (09/08), Terminal 3 of the Soekarno-Hatta International Airport, located just outside Indonesia's capital city of Jakarta, becomes operational. This IDR 7.7 trillion (approx. USD $588 million) terminal is designed to have the capacity to handle some 25 million passengers per year. In the first phase of the terminal's operations, national flag carrier Garuda Indonesia will use it for its domestic flights (about 126 per day). Gradually, Garuda will serve international flights from this terminal, followed by international flights of other airlines.

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  • Construction Jakarta-Bandung High-Speed Railway Project to Start?

    Next week construction of the high-speed Jakarta-Bandung railway project may finally start as the government is set to issue the necessary construction permit that allows for the development of Indonesia's first-ever high-speed railway project. This railway will connect Indonesia's capital city of Jakarta to the city of Bandung in West Java. Although the groundbreaking ceremony was conducted in January 2016 the project - similar to many other infrastructure projects in Indonesia - has been plagued by a long delay.

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  • Infrastructure Indonesia: Update Mass Rapid Transit (MRT) Project Jakarta

    Since the groundbreaking ceremony on 10 October 2013, witnessed by then-Jakarta Governor Joko Widodo, the Mass Rapid Transit (MRT) project in Indonesia's capital city of Jakarta has made progress. According to the latest updates, the first phase of the North-South line has been completed for slightly over 50 percent per July 2016. This first phase, which is estimated to require USD $1.5 billion worth of investment, connects Lebak Bulus in South Jakarta to Bunderan Hotel Indonesia in Central Jakarta.

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  • Cement Sales Indonesia Rose 3% in First Half of 2016

    Domestic cement sales in Indonesia climbed 3.1 percent year-on-year (y/y) to 29.48 million tons in the first half of 2016. Widodo Santoso, General Chairman of the Indonesian Cement Association (ASI), said rising cement demand in Indonesia is particularly supported by the construction of power plants, smelters and other infrastructure projects outside the island of Java. However, he added that the cement sales growth figure in H1-2016 is slightly below the target of ASI.

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  • World Bank's Logistics Performance Index: Indonesia Falls to 63rd

    Despite the Indonesian government being eager to push for infrastructure development, Southeast Asia's largest economy fell 10 positions in the World Bank's 2016 Logistics Performance Index (LPI), from 53rd position in 2014 to 63rd position this year. The LPI is determined through a worldwide survey involving operators on the ground (global freight forwarders and express carriers) that provide feedback on the logistics in nations where they operate and those with which they trade. High logistics costs are a problem for any economy as it makes products and services less competitive, while foreigners will think twice before investing in the country.

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  • 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

    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

    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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Latest Columns Infrastructure

  • Steel Industry in Indonesia: Challenges and Opportunities

    Domestic steel sales in Indonesia are expected to rise 6 percent y/y to 15.1 million tons in 2014. Meanwhile, the global average steel price has been USD $536 per ton this year, implying that the market value of Indonesian steel sales is to reach USD $8 billion this year. In recent years, the country’s steel sales have been rising on development of infrastructure, defense industry, and manufacturing. The sales are expected to continue rising in the years ahead due to commitment of the government to boost infrastructure development.

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  • Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Indonesian Finance Minister Chatib Basri said that the lower pace of economic growth in China, the world’s second-largest economy, is a major concern for Indonesia as it leads to declining demand for commodities (and thus places downward pressure on commodity prices). As Indonesia is a major commodity exporter - such as coal, crude palm oil, nickel ore and tin - the country feels the impact of weak global demand for commodities. About 60 percent of Indonesia’s exports are commodities, mostly raw ones.

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  • Indonesian August Cement Sales Rise on Property & Infrastructure Projects

    Indonesian cement sales jumped 37.4 percent (year-on-year) to 4.7 million tons in August 2014 due to higher cement demand from Indonesian property and infrastructure developers. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said that the development of smelters, power plants, apartments, hotels, and social housing has been key to improved cement sales last month. However, the 37.4 percentage point growth was also caused by fewer working days in August 2013 as the Lebaran holiday fell in that month.

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  • Infrastructure Indonesia: Tender Soekarno-Hatta Airport Railway Delayed

    The prequalification tender for the construction of the Soekarno-Hatta International Airport Railway project has been postponed until late October 2014 (from August) as agreements with several stakeholders still need to be finalized. For example, the government is yet to underwrite part of the required investment. Indonesia’s Ministry of Transportation proposes to underwrite IDR 13.5 trillion (USD $2.3 billion) - approximately 49 percent of total required investment for this railway project.

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  • Indonesian Property Stocks Gain Most in First 8 Months of 2014

    Property stocks listed on the Indonesia Stock Exchange (IDX) have outperformed all other stocks between the first trading day of 2014 up to 29 August 2014. The IDX’ property sector category rose 37.6 percent in the indicated period, whereas the benchmark stock index (Jakarta Composite Index, abbreviated IHSG) - which involves all stocks traded on the IDX - climbed 18.7 percent over the same period. On the IDX, stocks are placed in ten sectoral categories. The second-best performing sectoral index was finance (+24.5 percent).

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  • Infrastructure in Indonesia: President Yudhoyono Targets Start of 13 Projects

    Before the second and final term of Indonesian President Susilo Bambang Yudhoyono has finished on 20 October 2014, the groundbreaking of a total of 13 infrastructure projects should have been conducted. These 13 projects are diverse ranging from toll roads to steam power plants and the extension of the Soekarno-Hatta International Airport located nearby Jakarta. One of these 13 projects - the IDR 9.65 trillion Trans Sulawesi Railway project - has already had its groundbreaking in mid-August 2014.

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  • Joko Widodo’s Political & Economic Agenda: Future of Jokowi’s Indonesia?

    When campaigning, presidential candidates will always promise a bright future in order to gain votes. It is particularly easy for a new presidential candidate to promise golden mountains as opposed to the incumbent president who needs to be more cautious making promises as people can point to the (failed) results of his promises during the presidential term. The 2014 Indonesian presidential election was particularly interesting as we saw two new presidential candidates and, thus, the ‘inflation of promises’.

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  • Indonesian Government Tenders Soekarno-Hatta Airport Train Project

    The Indonesian Transportation Ministry will tender the Soekarno-Hatta International Airport train project in August 2014. The project, which will connect one of the world’s busiest airports to the capital city of Jakarta, is offered in the shape of a public-private partnership (PPP) with the Indonesian government. The total of investment required to develop the railway, which will be built partly underground, is estimated at IDR 26 trillion (USD $2.2 billion). The project aims to improve connectivity to the airport.

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  • 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

    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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