Indonesia continues to attract major investments. Other than multi billion dollar projects of Vale Indonesia (INCO), Japan’s Daikin has recently kicked off construction of new AC factory with Rp3.3 trillion of investment this week.

Daikin, through PT Daikin Industries Indonesia, builds the new factory at GIIC Industrial Park, Bekasi, West Java province. The plant, with design capacity of 1.5 million units per annum, is scheduled to start commercial production in the second half of 2024 creating jobs to 1,600-2,500 people.

Cellular phone provider XL Axiata (EXCL) opted to reduce or divest some shares in data center entity, PT PDG Data Centres, after injecting Rp1.35 trillion last month. Henry Wijayanto, XL’s head external communications, told Bisnis.com that XL divest some shares in data center entity, maintaining at 14.82%, reduced from earlier 33.6%, aiming to be managed by partner with specific competency in data center business. In May 2022, XL transferred 245,362 shares in PT PDG Data Centres to Princeton Digital Group (Indonesia Alpha) Pte Ltd.

Meanwhile cellular firm Smartfren Telecom (FREN), owned by Sinarmas Group, said Alibaba has invested US$100 million to FREN, purchasing 19.6 billion FREN shares from Dian Swastika Sentosa (DSSA), also unit of Sinar Mas Group, at price of Rp77 per unit, or Rp1.5 trillion in total.

With Alibaba, FREN will also focus on developing digital business (data center project). FREN has data center project with capacity of 1,000 megawatts (MW)–mega project– under consortium of Sinar Mas and Dubai’s Group 42 (G42). Apart from FREN, Sinar Mas also focuses to strengthen its data center business through Mora Telematika Indonesia (MORA) or Moratelindo.

Noting also that Telkom also has 26 data centers which contributed Rp1.1 trillion in revenue. Telkom intends to consolidate its data center business within 2-3 years. Indosat Ooredoo (ISAT) also continues to developing its data center, and with subisidary PT Aplikanusa Lintasarta, ISAT transferred its data center asset to PT Starone Mitra Telekomunikasi (SMT).

DCI Indonesia (DCII), owned by Salim Group, also plans to develop its data center, expanding the building capacity this year, financed by retained profit of Rp256.4 billion. In the first half (H1) of 2022, DCII booked net profit of Rp143 billion, grew 30% y/y, on revenues of Rp458 billion, grew 22% y/y.

Technology firm Indointernet (EDGE), with popular Indonet brand, also subsidiary of DCII, allocates Rp2.8 trillion for expanding its data center (EDGE1) and for building new data center (EDGE2) with capacity of 20 megawatts (MW) IT Loan, targeted to be ready for services in 2023. In H1 this year, EDGE booked net profit of Rp69 billion, grew 41% y/y, on revenue of Rp382 billion, grew 38.4%.

Multipolar Technology (MLPT) are also said as target of investors’ investment as they have high growth prospect for its data center business alongwith the growing digital economy in the country. In H1 this year, MLPT booked net profit of Rp239 billion, surged 191% y/y, on sales and services revenue of Rp1.67 trillion, grew 39% y/y.

ICT retailer Erajaya Swasembada (ERAA) allocates Rp300 billion for buying back its shares amounting 3 billion units, funded by internal cash. Per June 2022, ERAA’s assets reached Rp15.48 trillion and equity was Rp6.81 trillion. After completion of buy back, ERAA’s assets will decline to Rp15.18 trillion and equity to Rp6.51 trillion. Earlier in May 20, 2022 to August 19, 2022, ERAA purchased back its shares (71.69 million units) at value of Rp35.56 billion.

ERAA booked profit attributable to owners of Rp507.5 billion in H1 this year, declined 9% y/y, as operating profit fell 8.6% y/y to Rp821.6 billion. Sales grew 9.5% y/y to Rp23.4 trillion. Cost of goods sold rose 10.5% y/y to Rp20.9 trillion.

Sales of cellular phones and tablet rose 8.2% y/y to Rp18.5 trillion, and sales of accessories and others jumped 66.6% y/y to Rp2.5 trillion. While sales of operator product declined 21% y/y to Rp1.38 trillion, and sales of computer and other electronic devices increased 6.6% y/y to Rp1 trillion.

Revenues from Apple South Asia Pte Ltd Singapore reached Rp3.79 trillion, PT Samsung Electronics Indonesia contributed Rp4.36 trillion, and PT Xiaomi Technology Indonesia contributed Rp2.49 trillion. Erajaya’s assets grew 36% y/y to Rp15.5 trillion, while liability jumped 75.5% to Rp8.67 trillion. Its cash and cash equivalent reached Rp852 billion.

Erajaya recorded a negative cashflow balance sheet, as it used net cash of Rp640.8 billion on operating activities during H1 of 2022, but it narrowed from Rp1.82 trillion it used in H1 of 2021. It spent Rp242.7 billion on acquiring fixed assets, funded by bank loan of Rp685 billion.

 

by Yohannes Obor

DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE