Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Infrastructure Development Indonesia: Balikpapan-Samarinda Toll Road Project

    Infrastructure Development Indonesia: Balikpapan-Samarinda Toll Road Project

    In its bid to enhance connectivity across the Indonesian archipelago, the government of Indonesia is eager to boost toll road development. Enhanced connectivity is key to curtail the nation's high logistics costs hence improving the competitiveness of domestic businesses while also making the investment climate more attractive. Besides business interests, enhanced infrastructure development is also important from a social point of view (for example, people's access to healthcare is improved). In this column we take a look at the developments of the Balikpapan-Samarinda toll road on the island of Kalimantan.

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  • Growing Economic Activity in Indonesia, Higher Current Account Deficit

    Growing Economic Activity in Indonesia, Higher Current Account Deficit

    Indonesia's current account deficit is expected to rise to USD $26 billion, or 2.6 percent of the nation's gross domestic product (GDP), in 2016. This increase is expected because rising investment and infrastructure development in Indonesia will require more imports from abroad. In 2015 Indonesia's current account deficit was recorded at USD $17.8 billion (2.06 percent of GDP), improving from a USD $27.5 billion deficit (3.09 percent of GDP) in the preceding year (when Indonesia touched a record high current account deficit, and which seriously undermined investors' confidence in the nation's assets).

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  • February Car Sales Indonesia Fall slightly, Cause for Optimism?

    February Car Sales Indonesia Fall slightly, Cause for Optimism?

    An improvement has been detected in Indonesia's car sales. According to the latest data from the Indonesian Automotive Industry Association (Gaikindo) car sales in Indonesia totaled 88,250 units in February 2016. Although this figure is 0.6 percent down from sales in the same month one year earlier, the percentage fall is the slowest since August 2014. Noegardjito, Secretary of Gaikindo, said this limited decline came on the back of Indonesia's improving economy. However, February was still the 18th consecutive month of contracting car sales in Southeast Asia's largest economy.

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  • Steel Imports from China into Indonesia Surged in 2015

    Steel Imports from China into Indonesia Surged in 2015

    Indonesia's steel and iron producers urge the government to limit imports of steel into Indonesia as these imports are a burden on the domestic steel industry. Data from the Indonesian Iron and Steel Industry Association (IISIA) show that steel imports from China - the world's largest steel producer - into Indonesia jumped 94 percent year-on-year (y/y) to 3 million tons in 2015. This surge is particularly caused by foreign contractors working on infrastructure projects in Indonesia.

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  • Jokowi Opens Bonded Logistics Centers to Improve Indonesia's Competitiveness

    Jokowi Opens Bonded Logistics Centers to Improve Indonesia's Competitiveness

    Indonesian President Joko Widodo inaugurated 11 bonded logistics centers on Thursday (10/03) as part of Indonesia's second economic stimulus package that was unveiled on 30 September 2015. These bonded logistics centers aim to curtail the country's notoriously high logistics costs which makes businesses in Indonesia less competitive and the general business climate in Southeast Asia's largest economy less attractive. The official opening ceremony for the 11 centers (mostly located on the island of Java) was held in Jakarta.

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  • Cement Sales in Indonesia Rise in February, Export in Focus

    Cement Sales in Indonesia Rise in February, Export in Focus

    Cement sales in Indonesia rose 3 percent year-on-year (y/y) to 4.45 million tons in February 2016 from the same month one year earlier. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said Indonesia's rising cement sales were caused by the ongoing development of infrastructure projects across the archipelago. Three regions showed a marked increase in cement sales last month: Sumatra (+16.5 percent y/y to 2.13 million tons), Sulawesi (+33 percent y/y to 841,000 tons) and the Moluccas & Papua (+31 percent y/y to 125,000 tons).

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  • FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    Japanese companies remain committed to invest in Indonesia - particularly into infrastructure, power and manufacturing - according to the Kansai Economic Federation (Kankeiren), one of Japan's private, non-profit representative economic organizations. Kankeiren Chairman Shosuke Mouri met Indonesia's Chief Economics Minister Darmin Nasution on Monday (07/03) in Jakarta. Japan is one of the biggest investors in Indonesia. During the period 2010-2015 the country invested a combined total of USD $14.9 billion in Indonesia.

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  • Dam Construction in Indonesia: 8 Dams to Be Tendered

    Dam Construction in Indonesia: 8 Dams to Be Tendered

    Indonesia's Ministry of Public Works and Housing targets to complete the tender process for eight dams, worth a combined IDR 8.60 trillion (approx. USD $637 million) - all national strategic projects - by June 2016. Imam Santoso, Director of Dams at the Public Works Ministry, said one dam has already been tendered last week: the IDR 1.04 trillion Kuwil Kawangkoan Dam in North Sulawesi. Next week the government is set to tender the Leuwikeris Dam in West Java. The central government aims to tender a new dam project every two weeks up to June 2016.

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  • GVK to Develop New International Airport in Yogyakarta

    GVK to Develop New International Airport in Yogyakarta

    India-based conglomerate GVK is ready to invest USD $500 million as part of its commitment to develop a new international airport in Yogyakarta. Karthi Gajendran, President of Airport Development at GVK, said the company sees great potential in the construction of a new airport in Temon (Kulo Progo) near the coastal line in the Indonesian province of Yogyakarta. GVK will create a joint venture with Indonesian state-owned airport operator Angkasa Pura I later this year to develop the new airport.

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  • Cement Sales Indonesia Rise in January on Infrastructure Push

    Cement Sales Indonesia Rise in January on Infrastructure Push

    The start of infrastructure projects in Indonesia - ranging from roads, bridges, power plants, smelters, and public housing - has managed to boost cement consumption in the first month of 2016. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said domestic cement consumption in Indonesia rose 4.4 percent (y/y) to 5.14 million tons in January 2016 from the same month one year earlier. Highest growth in consumption occurred in Sumatra (+15.8 percent y/y to 1.1 million tons), Java (+5.3 percent y/y to 2.9 million tons) and Sulawesi (+19 percent y/y to 424,000 tons).

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Latest Columns Infrastructure

  • Indonesia Investment Summit 2015: Challenges & Pillars of the Economy

    Indonesia Investment Summit 2015: Challenges & Pillars of the Economy

    In his presentation at the Indonesia Investment Summit 2015, organized in Jakarta on 15-16 January, Standard Chartered Bank Senior Economist Fauzi Ichsan said that despite the challenges amid global uncertain times, there remains plenty room and opportunity for Indonesia to grow robustly on the long-term. In fact, by 2030 Ichsan believes that Indonesia will be among the world's top ten countries in terms of largest economies. For investors it is important to understand the challenges and key pillars of economic growth.

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  • ADB Praises Indonesia’s Reform Efforts but GDP Growth Limited in 2015

    Takehiko Nakao, President of the Asian Development Bank (ADB), estimates that the Indonesian economy will grow 5.6 percent year-on-year (y/y) in 2015, lower than the target that has been set by the Indonesian government in the 2015 State Budget (5.8 percent y/y). Nakao is slightly less optimistic as he expects a slowdown in government spending this year. On a positive note, Nakao’s forecast implies a sharp improvement in Indonesia’s economic growth in 2015 from an estimated 5.1 percentage point (y/y) GDP growth in 2014.

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  • Soekarno-Hatta Railway Project Indonesia: Tendered to Private Sector

    Soekarno-Hatta Railway Project: Fully Tendered to Private Sector

    The Indonesian government changed the funding scheme for the construction of the Soekarno-Hatta International Airport Railway project (which will connect Soekarno Hatta International Airport, located nearby Jakarta, and Halim Airport in Jakarta). Previously, it was planned that this project, valued at IDR 26 trillion (USD $2.1 billion), would be offered through a public-private partnership (PPP) construction in which the Indonesian government would finance 55 percent of the costs. Now, however, the project is offered fully to the private sector.

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  • Macroeconomic Stability Indonesia: Inflation and GDP Update

    The Governor of Indonesia’s central bank, Agus Martowardojo, said that he expects inflation to accelerate to 6.1 percent year-on-year (y/y) in November 2014, significantly up from 4.83 percent y/y in the previous month. Accelerated inflation is caused by the multiplier effect triggered by the recent subsidized fuel price hike in Southeast Asia’s largest economy. On 18 November 2014, the government introduced higher prices for subsidized fuels in a bid to reallocate public spending from fuel consumption to structural development.

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  • What are Joko Widodo's Economic & Social Development Targets?

    Last week, Indonesian President Joko Widodo introduced higher subsidized fuel prices in Southeast Asia’s largest economy in a bid to shift generous public spending from fuel consumption to productive and structural economic and social development. Prices of subsidized low-octane gasoline (premium) and diesel (solar) were raised by over 30 percent, or IDR 2,000 (USD $0.17) per liter, starting from 00:00 on Tuesday (18/11). Widodo aims to reallocate these funds to infrastructure, social welfare and the maritime sector.

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  • US Investments in Indonesia: American Companies Eager to Invest

    A total of 35 American companies are interested to invest a combined USD $61 billion in Indonesia over the next five years according to a survey conducted by the Paramadina Public Policy Institute, the American Chamber of Commerce in Indonesia (AmCham Indonesia), the Indonesian Employers Association (Apindo), and the Indonesian Chamber of Commerce and Industry (Kadin Indonesia). These 35 US companies have already invested a total of USD $65 billion in Indonesia over the period 2004 to 2012.

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  • Aviation Industry Indonesia: Air Passenger Traffic Growth is Slowing

    Aviation Industry Indonesia: Air Passenger Traffic Growth is Slowing

    The number of air passengers in Indonesia will most likely fail to meet its growth target in 2014. Based on government data, the number of air passengers in Southeast Asia’s largest economy reached 47.5 million in the first eight months of 2014, a 5.82 percentage point growth from the same period last year. However, the Indonesia National Air Carrier Association (INACA) initially targeted annual passenger growth in the range of 12-15 percent for 2014. Amid slowing economic growth, people’s purchasing power has declined.

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  • Positive Outlook Investments in Indonesia’s Food & Beverage Industry

    Positive Outlook Investments in Indonesia’s Food & Beverage Industry

    Investment in Indonesia’s processed food and beverage industry is expected to grow at least ten percent to IDR 55 trillion (USD $4.6 billion) in 2015 from an estimated investment realization of IDR 50 trillion in 2014. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said that investments in this sector have been solid due to rising consumption of food and beverages in Southeast Asia’s largest economy. Particularly foreign investments have been strong in 2014 and are expected to continue next year.

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  • What are the Economic Challenges Faced by President Joko Widodo?

    What are the Economic Challenges Faced by President Joko Widodo?

    Today (20/10), Central Jakarta seems to have changed into one big party as Joko Widodo was inaugurated as Indonesia’s seventh president earlier this morning. For the remainder of the day celebrations will be held at Monas (National Monument) and surrounding areas. However, it is of vital importance that Widodo (popularly known as Jokowi) will start to focus on this presidential duties tomorrow as the country is facing a number of economic challenges. What are these challenges?

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  • Steel Industry in Indonesia: Challenges and Opportunities

    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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