We talked to one cabinet member two weeks ago. That time, he informed us about the visit from executives of cement companies, during which they appealed for moratorium of new cement mill to tackle the growing oversupply. Looks like the proposal might be partly accommodated by the new cabinet.
Read MoreIndo Tambangraya Megah (ITMG), coal producer controlled by Banpu Plc (Thailand), is among the best performing stocks with 117% gain year-to-date as equity investors speculated on recovery of thermal coal market. Fundamentals of coal producers, including ITMG, in the first half, however, were still under significant pressures. ITMG, for example, reported 37.1% fall in net profit.
Read MoreAfter sinking thousands of vessels for their alleged involvement in illegal fishing, President Joko ‘Jokowi’ Widodo ordered his cabinet to speed up investments in fisheries industry. We have to admit that investments in the sector yet to pick up. Financial statement of companies listed on Indonesia Stock Exchange (IDX) suggested slow pace of investment and sales revenues in the sector.
Read MoreThe Democratic Party and the Golkar Party have reportedly reached an agreement to endorse Wahidin Halim and his running mate Andika Hazrumy to challenge the incumbent Governor of Banten Rano Karno, who is also a politician from PDI-P, in Banten’s 2017 gubernatorial election. And so, it appears likely that we will see two pairs of candidates in the race with Wahidin-Andika going head-to-head against the incumbent.
Read MoreThe process of Suspension of Debts Payment (PKPU) for PT Trikomsel Oke Tbk (TRIO) is still ongoing. In the hearing held on June 16, 2016, the panel of judges of the Commercial Court of the Central Jakarta District Court decided to grant the Company its application for extension of time for PKPU. TRIO will have 45 more days after August 1 (until September 15) to revise their proposal.
Read MoreIn May 2016 two companies under the management of Lippo Group, Lippo Limited (HKEX.00226) and Lippo China Resources (HKEX.00156), together with the LCR Group, made a joint announcement that a bankruptcy petition was filed by certain creditors against CS Mining LLC, the valuable strategic partner of the Group. On August 4, 2016, the United States Bankruptcy Court for the District of Utah granted the petition. The case reminds us of Lippo Group’s engagement in the mining industry in Indonesia.
Read MorePT Waskita Beton Tbk has kicked off initial public offering of 10.54 billion shares or about 40% of the enlarged paid-up share capital. Will it be successful like Wika Beton (WTON), which gained almost 100% from IPO price, or probably better?
Read MorePresident Joko ‘Jokowi’ Widodo and Singapore Prime Minister Lee Hsien Loong are scheduled to inaugurate Kendal Industrial Park in Kendal, Central Java province on August 25, 2016. Construction of Pemalang-Batang and Batang-Semarang toll road plus 2×1000 MW in Batang Regency have lifted prospect of the industrial park developed by SembCorp and Jababeka Group.
Read MorePrivate-equity firm CVC Capital Partners has launched a buyout offer for Nirvana Asia Ltd, Asia’s largest funeral-services provider by revenue, in a deal worth almost US$1 billion. The deal is interesting to watch, given Nirvana Asia’s operations in Malaysia, Singapore, and Indonesia.
Read MoreProduction of heavy equipment in Indonesia continues to slide. In the first half of 2016 Indonesia produced a total of 1,471 heavy equipment units, down 35% (y/y) from 2,256 units in the same period one year earlier. Meanwhile, the utilization of the nation’s installed heavy equipment production capacity plunged from 40% to 30% over the same period. Overall, the heavy equipment sector of Indonesia has been plagued by weak conditions in the mining and agriculture sectors. The construction sector now forms the main source of heavy equipment sales.
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