Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Indonesian Banks Look at Food & Beverage Sector for 2016 Credit Growth

    Indonesian Banks Look at Food & Beverage Sector for 2016 Credit Growth

    Besides infrastructure, Indonesia's food and beverage sector remains a favorite of Indonesian banks for the disbursement of loans in 2016 as this sector is regarded promising. Meanwhile, a good supply of food products also supports a stable inflation rate (apart from administered prices, volatile food prices are a key contributor to inflation in Indonesia). Roy Armand Arfandi, General Director of Bank Permata, said Indonesia's economic growth is still highly dependent on people's purchasing power (household consumption accounting for nearly 56 percent of the nation's GDP), hence those sectors that support domestic consumption are attractive for banks.

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  • National Strategic Projects Indonesia: Land Acquisition & Funds

    National Strategic Projects Indonesia: Land Acquisition & Funds

    Indonesian contractors involved in the development of infrastructure projects that have been declared 'national strategic projects' still see difficulty in realization of these projects despite the implementation of Presidential Instruction No. 1/2016 on the Acceleration of the Implementation of National Strategic Projects, signed on 8 January 2016 by Indonesian President Joko Widodo. This presidential instruction orders all relevant ministries and institutions to support the acceleration of the country's national strategic projects. By 2019 these projects - 225 in total - have to be completed.

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  • Moody's Investors Service Keeps Indonesia's Credit Rating at Baa3

    Moody's Investors Service Keeps Indonesia Credit Rating at Baa3

    New York-based Moody's Investors Service kept Indonesia's sovereign credit rating at Baa3 (stable outlook), the lowest level within the investment grade rating. Although the rating agency is positive about the strong nature of Indonesia's economy and the prudent fiscal policy that is safeguarded by the Indonesian government and central bank, it sees few room for an upgrade soon (to Baa2) as government revenue is not expected to rise significantly in the period ahead. Moody's released this statement on Thursday (28/01).

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  • Infrastructure Indonesia: Government Offers Toll Road Projects

    Infrastructure Indonesia: Government Offers Toll Road Projects

    Indonesia's Ministry of Public Works and Housing said the government plans to offer three toll road projects to investors in the first quarter of 2016: (1) Cileunyi-Sumedang-Dawuan (Cisumdawu) in West Java, (2) Serang-Panimbang in Banten, and (3) Legundi-Bunder in East Java. These projects are part of the Indonesian government's target to add 1,000 kilometers of new toll roads up to 2019 in an effort to enhance the country's infrastructure development, hence improving connectivity across the archipelago and reduce logistics costs.

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  • Indonesia & ASEAN Economic Community (AEC) - Introduction

    Indonesia & ASEAN Economic Community (AEC) - Introduction

    Per 1 January 2016 the ASEAN Economic Community (AEC) came into effect. This community implies stronger cooperation and integration among the ten member countries in Southeast Asia. According to its blue print the AEC involves the launch of a single market and production base among its member nations, hence allowing the free flow of goods, services, investment, and skilled labor as well as the freer flow of capital. Indonesia is one of the member countries.

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  • New Cities and Economic Centers along the Jakarta-Bandung Railway

    New Cities and Economic Centers along the Jakarta-Bandung Railway

    Indonesia's first high-speed train, which will run between Jakarta and Bandung (in West Java) is expected to give rise to new economic centers and cities along the 142 kilometers-long railway. Construction of the project, estimated to cost a total of USD $5.5 billion, is scheduled to kick off on 21 January 2016 in Bandung as Indonesia's Transportation Ministry has finally issued the track permit (this had been a major hurdle previously).

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  • Indonesia's Cement Sales End 2015 in a Positive Way

    Indonesia's Cement Sales End 2015 in a Positive Way

    Indonesia's cement sales totaled 61 million tons in 2015, up 1.8 percent from sales in 2014. Although the pace of growth is limited, the final result was well received by stakeholders and policymakers because in the first half of 2015 the nation's cement sales growth still stood at -1.5 percent on a year-on-year basis due to a delay in government-led infrastructure development. In the second half of the year there occurred a surge in infrastructure development projects, hence triggering higher cement sales.

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  • Heavy Equipment Industry Indonesia Plagued by Low Commodity Prices

    Heavy Equipment Industry Indonesia Plagued by Low Commodity Prices

    Production of heavy equipment in Indonesia fell 23 percent (y/y) to 4,100 units in 2015 due to the weak conditions in the mining and agriculture sectors. Traditionally, most of heavy equipment sales occur in these two sectors. Weak demand caused utilization of the nation's installed production capacity for heavy equipment to fall to 41 percent in 2015 from 51 percent in the preceding year. When fully utilized Indonesia can produce an estimated total of 10,000 units of heavy equipment per year.

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  • Cement Industry Indonesia in 2016: Growth on Infrastructure Push

    Cement Industry Indonesia in 2016: Growth on Infrastructure Push

    The push for government-led infrastructure development across Indonesia, which started from mid-2015, is expected to cause rising cement sales in Indonesia in 2016. The Indonesian Cement Association (ASI) expects to see a 5 percentage point growth in Indonesian cement sales to 64.5 million tons this year (from an estimated 61.5 million tons in 2015). However, ASI Chairman Widodo Santoso emphasized that a delay in government spending could jeopardize achieving the sales projection.

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  • Government of Indonesia Preparing 2016 Infrastructure Projects

    Government of Indonesia Preparing 2016 Infrastructure Projects

    Although Indonesian President Joko 'Jokowi' Widodo pledged to boost infrastructure development across Indonesia, government spending on infrastructure projects was sluggish during his first year in office due to budgetary and organizational reforms (including cutting the energy subsidies). A positive sign, however, is that government spending on infrastructure development and the number of groundbreaking ceremonies for infrastructure projects rose in the second half of 2015 as reforms were completed.

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Latest Columns Infrastructure

  • Latest Indonesia Investments Report Out - Introduction October 2021

    Latest Indonesia Investments Report Out - Introduction October 2021

    When writing this introduction, the 2021 United Nations Climate Change Conference (also known as COP26) had just started in Glasgow (Scotland). Indonesian President Joko Widodo is among the delegates who is slated to speech about the importance of preventing – and adapting to – climate change, and to seek ways to obtain climate financing as Indonesia is unable to finance the huge and costly energy transition by itself.

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  • Infrastructure in Indonesia; Jakarta-Bandung High-Speed Train Project Needs More Time & Money

    Infrastructure in Indonesia; Jakarta-Bandung High-Speed Train Project Needs More Time & Money

    On 30 September 2021 Indonesia’s House of Representatives (Dewan Perwakilan Rakyat, DPR) approved the 2022 State Budget (Anggaran Pendapatan dan Belanja Negara, APBN) that had previously been proposed by the cabinet. And with 14.2 percent of total government spending being reserved for infrastructure development in the 2022 State Budget, the Indonesian government confirms that it remains committed to much-needed infrastructure development.

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  • Airports in Indonesia; Yogyakarta International Airport Officially Opened

    Airports in Indonesia; Yogyakarta International Airport Officially Opened

    On 28 August 2020 Indonesian President Joko Widodo officially opened Yogyakarta International Airport (YIA), a brand new airport that is located in Kulon Progo in the Special Region of Yogyakarta; a region known as one of Indonesia’s main tourism centers. Many in fact call Yogyakarta the ‘heart and soul of Indonesia’.

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  • September 2020 Report Indonesia Investments; Infrastructure in Focus

    September 2020 Report Indonesia Investments; Infrastructure in Focus

    Across the world, concern over the COVID-19 pandemic grew in September 2020 as the number of new COVID-19 cases continued to rise rapidly. Worldwide, at the end of September 2020, some 34 million people have been infected with the virus, while more than one million people have died after contracting the virus.

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  • The Role of State-Owned Enterprises in the Indonesian Economy

    The Role of State-Owned Enterprises in the Indonesian Economy

    One characteristic of the Indonesian economy is that the state-owned enterprises (SOEs) play an important role in this USD $1.0 trillion economy. They not only play an important role because some of them rank among Indonesia’s biggest companies (in terms of profit, sales and assets), thereby generating plenty of money for the government (in the form of tax revenue or dividend) while at the same time creating jobs for millions of Indonesians.

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  • 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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