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

  • Waskita Karya: Right Company, Right Time to Focus on Toll Road Construction

    Construction company Waskita Karya is expected to be among the main beneficiaries of the multi-year Trans-Java toll road project. The company, in which the Indonesian government owns a 68 percent stake, has been assigned to develop six (out of a total of 19) sections of the Trans-Java toll road including the sections Pemalang-Batang, Solo-Ngawi and Ngawi-Kertosono. Waskita Karya's participation in this project will not only strengthen the company's investment portfolio in Indonesia's toll road sector but will also imply rising precast concrete sales of its subsidiary Waskita Beton Precast (established in 2013).

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  • Steel Price Rises but China and Other Steel Producing Nations Divided

    The price of steel has surged 20 percent to USD $365 per ton in April 2016 from USD $305 per ton at the start of the year. The primary reason for the higher steel price is China's plan to curtail the country's installed steel production capacity by a further 150 million tons over the next five years. In recent years the steel price has dropped significantly due to the global oversupply, mainly originating from the chronic steel oversupply in China where domestic demand declined amid the nation's economic slowdown.

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  • Infrastructure Projects Indonesia: Semanggi Flyover Jakarta

    Construction of a new big infrastructure project in Indonesia has started: the Semanggi flyover in Jakarta's central business district. The project involves two additional elevated ramp roads above the existing intersection at Semanggi (hence creating an interchange). Improving the existing road infrastructure at this location is required in order to ease severe traffic congestion that occurs on working days. The project, which requires high-end technology, kicked off on Friday (08/04) and is scheduled to be completed in August 2017, ahead of the 2018 Asian Games.

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  • Construction of Indonesia's Jakarta-Bandung Railway Should Start Soon

    After experiencing a two-month delay due to permitting and concession trouble, the construction of the Jakarta-Bandung fast train should be able to commence soon. Indonesian Transportation Minister Ignasius Jonan confirmed on Wednesday (16/03) that his ministry agreed to grant a 50-year concession period to the Chinese-Indonesian consortium named Kereta Cepat Indonesia Cina (KCIC). The granting of this concession means that KCIC should be able to secure the necessary construction and business permits soon. The USD $5.1 billion Jakarta-Bandung railway (in West Java) is one of the mega-infrastructure projects of Indonesia.

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  • International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    The International Monetary Fund (IMF) expects Indonesia's economy to expand 4.9 percent year-on-year (y/y) in 2016, slightly up from a 4.8 percentage point (y/y) growth of gross domestic product (GDP) in 2015. On Tuesday (15/03) Luis Breuer, IMF Mission Chief for Indonesia, said the Washington-based lender projects limited growth (+0.1 percent) of Indonesia's private consumption this year. Regarding growth of investment and government spending in 2016, the IMF holds a more positive view. On the same day, the World Bank cut its forecast for Indonesia's 2016 GDP growth by 0.2 percent to 5.1 percent.

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  • Steel Pipe Industry of Indonesia to Thrive on Infrastructure Boom

    With Indonesia's construction and infrastructure sectors expected to grow in 2016, backed by government support, Indonesia-based steel pipe manufacturer Steel Pipe Industry of Indonesia should manage to see higher net profit this year. The company, with its factories in Sidoarjo and Surabaya (East Java), has the largest steel pipe production capacity of all steel pipe producers in Indonesia. With its six factories - and 34 production lines - the company's production capacity currently stands at 588,600 metric tons per year.

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  • Seaport Infrastructure Indonesia: Patimban to Replace Cilamaya?

    Indonesia's Ministry of Transportation has completed a feasibility study for the development of the Patimban seaport in West Java. Although there are no official statements made by the Indonesian government, it is expected that the Patimban seaport is the most suitable candidate to replace the Cilamaya port project in Karawang (West Java). This project was cancelled in April 2015 as the location was too closely located to an oil and gas block operated by Pertamina Hulu Energi Offshore North West Java, a unit of state-owned energy company Pertamina.

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  • Cement Industry Update: Semen Indonesia in a Good Position

    As cement sales in Indonesia are expected to rise nearly 10 percent (y/y) to 66.4 million tons in 2016 on the back of government-led infrastructure development, investment growth and accelerating GDP growth, three cement producers are set to benefit. The three market leaders in Indonesia's cement industry that should see higher sales are Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia.

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  • Indonesia's 8th Stimulus Package: Import Tax, Oil Refineries & One-Map Policy

    On Monday (21/12) the government of Indonesia unveiled its eight economic stimulus package. This latest edition of the series of packages - all aimed at boosting economic growth - involves three policies. Firstly, the scrapping of import taxes on 21 categories of airplane spare parts. Secondly, fiscal and non-fiscal incentives for the development of oil refineries. Thirdly, the central government will streamline and harmonize land-acquisition for infrastructure development across the country through the new "one-map policy".

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  • Bank Central Asia (BCA) to See Slower Credit Growth than State Banks

    Bank Central Asia (BCA), one of the leading commercial banks in Indonesia, is estimated to continue posting growing net profit and rising credit growth in the years ahead despite the persistently sluggish domestic economy. However, contrary to the state-controlled banks - such as Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) - BCA will most likely not see double-digit credit growth in the near future as BCA's customers mostly originate from the private sector. The state-controlled banks, on the other hand, have the advantage of being involved in the government's push for infrastructure development and government spending.

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