Author: yosefardi.com

Mining Saves The Day

The State is slated to collect more of non tax revenues from coal and minerals this year, helping the government in compensating difficulties in tax collections. As of early November, the State has collected Rp34.4 trillion of non tax revenues from coal and mineral, higher than full year target of Rp32.4 trillion.

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Takeaways from October Trade Stats

Indonesia booked trade surplus of US$895 million last month, down 27.6% year-on-year and nearly 50% month-on-month due to stronger import than export growth. The correction was mostly linked to 62% jump in deficit of oil and gas, while surplus in non oil and gas slipped only 2.2% year-on year.

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Australian Mcmahon, Nusa Konstruksi Develop Gold & Copper Mine

Nusa Konstruksi Enjiniring Tbk (DGIK) has partnered with Perth-based mining contractor Macmahon Holdings on the development of a gold and copper mine at Mount Tumpangpitu in Banyuwangi, East Java. The US$9 million deal bumps the total contract value the companies have secured between them over the past few years to $190 million, following construction work at the Martabe gold mine in North Sumatra, scheduled for completion in 2020. Corporate secretary Djohan Halim said in a filing to the Indonesia Stock Exchange (IDX) on Monday (Nov 13), the Mount Tumpangpitu gold mine is operated by Bumi Suksesindo, a subsidiary of Indonesian miner Merdeka Copper Gold, which is affiliated with investment firm Saratoga Investama Sedaya. Saratoga holds a 27.8% stake in the...

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Domestic Cement Sales Up 11% in October

Domestic cement sales reached 6.7 million tons in October, up 12.5% year on year. Given the October sales, domestic cement sales in the ten months to October reached 54.2 million tons, 7.2% higher from the same period last year. In October, cement consumption in Java grew 17% to 3.75 million tons, Kalimantan rose 6.1% to 434,830 tons, Bali & Nusa Tenggara increased 27% to 388,600 tons, Maluku & Papua grew 24% to 163,400...

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Banks Hesitant to Loan to Hotel Industry

Local banks are still hesitant to disburse credit to sectors that support these leisure activities, such as the hotel industry. Despite having detected a trend toward spending on leisure activities among Indonesian consumers, banks cannot suddenly start disbursing credit to those sectors that support these activities. Overall, local banks have disbursed a total of Rp96.5 trillion worth of credit to the accommodation provider sector (which includes hotels) in the first eight months of 2017, up a modest 3.33% from credit disbursement in the same period one year earlier. This is a significant slowdown, considering the growth rate was 8.8% (y/y) in 2016, 16.7% (y/y) in 2015, and 24.1% (y/y) in 2014.Meanwhile, the non-performing loan (NPL) ratio in the domestic accommodation provider sector rose to 4.11% in August 2017, up from 2.71% at the end of 2016, implying the quality of credit in this sector has...

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Steel Manufacturers Request Anti-Dumping Duties

Indonesian steel manufacturers urge the government to curb the dumping of steel by foreign traders in Indonesia. Hidayat Triseputro, Executive Director of the Indonesian Iron and Steel Industry Association (IISIA), says the key problem is the free trade zone in Batam (located close to Singapore) where steel can be imported duty-free. In 2016 Indonesia consumed a total of 12.7 million tons of steel, while domestic manufacturers could only deliver 6.8 million tons (therefore the Indonesian government pushes for more investment in the nation’s steel manufacturing industry). The remainder was imported from abroad, particularly from China where a chronic steel oversupply led to attractive prices.The Indonesian government is currently encouraging the development of a steel manufacturing center in Cilegon with a production capacity of 10 million tons per year. This project is targeted to be completed by...

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Revisiting PTPN 3

PTPN 3, which is now a holding company for state-owned plantations, revives its plan to launch the initial public offering (IPO) of its unit, PTPN 4, in 2018. Earlier, The Company has targeted to raise Rp1.8 trillion from IPO. Current market condition, and expected market improvement next year, would support PTPN IV to gain more funds through IPO.

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The Helicopter Procurement Graft Case and Corruption in Riau

The pre-trial lawsuit filed by the President Director of PT Diratama Jaya Mandiri one Irfan Kurnia Saleh against the Corruption Eradication Commission (KPK) was not granted by the presiding judge at the South Jakarta District Court. Irfan must go through prosecution as such. Irfan’s legal counsel said they’re ready to fight against the KPK in the Corruption Court. On a separate matter, the Supreme Court recently accepted the cassation petition filed by the KPK in the case of corruption that ensnared the Regent of Rokan Hulu one Suparman. Suparman was acquitted by the Corruption Court at the Pekanbaru District Court back in February 2017 and was re-assigned to his position as Regent in May 2017.

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More Support for Jokowi’s Re-election Bid

Nasdem, a political party led by media mogul Surya Paloh, said that they ‘d formally declare their endorsement of President Joko “Jokowi” Widodo’s re-election in their upcoming National Working Meeting (Rakernas). Nasdem will be the fifth political party in the ruling coalition to pledge their support for Jokowi after Golkar, Hanura, PPP, and PKPI.

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Prabowo’s 2019 Preparation (2)

The Chairman of the opposition party Gerindra Prabowo Subianto visited the tombs of the Kings of Islamic Mataram and the final resting place of the Great Military Commander General Soedirman in Yogyakarta on Monday (Nov. 13). Prabowo also took the time to met with the patron figure of PAN Amien Rais, who was Prabowo’s supporter in the 2014 presidential race. Did Prabowo and Amien talk about an alliance between Gerindra and PAN for 2019? Will PAN abandon the ruling coalition?

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