Category: Industries

Infrastructure Journal No. 24/2017

Reliability of electricity supply in North Sumatra and Aceh has increased with early commercial operation of 240 MW marine vessel power plant (MVPP) in Belawan, North Sumatra. The additional capacity entered the system on June 15, lifting overall supply to 2,223 MW, higher than peak load of North Sumatra (1558 MW) and Aceh (355 MW).

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China Investment & Outside Java Industrialization

The Government has increasingly been frustrated with continued delay of Freeport’s copper smelter with estimated investment of US$2.3 billion. Chinese investors, on the other hand, have aggressively invested over US$5 billion in the past few years in mineral processing plants in West Kalimantan, Central Sulawesi, Southeast Sulawesi, North Maluku, and Maluku provinces.

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Equity Policy in Action: Electricity

Teluk Balikpapan coal-fired power plant (2×100 MW) has recently entered commercial operation in East Kalimantan. Takalar coal-fired power plant (2×100 MW) in South Sulawesi province will follow because its construction progress reached 76% by late March 2017. Development of these projects was started by SBY-Boediono administration.

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Growing Optimism for Connectivity (8)

After almost one decade of planning, physical construction of Cengkareng-Batu Ceper-Kunciran (14.19 KM) under the Jakarta Outer Ring Road (JORR)-2 has finally entered physical construction, boosting optimism on connectivity in the greater Jakarta, West Java, and Banten provinces. How about the trans-Sumatra and trans-Java toll road projects?

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Infrastructure Journal No.21/2017

Silangit Airport in Tapanuli Utara, North Sumatra province, is set to become an international airport this year to support Toba Lake as one of 10 tourist destinations by Jokowi-Kalla administration. The airport’s runway is being expanded from 2,400m x 30m to 2650m x 45 to accommodate wide-body aircrafts.

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In Action: Local Content Policy for Smartphones (1)

Minister of industry Airlangga Hartarto has on Thursday (June 8) inaugurated production facility for Motorola and Lenovo smartphones at PT Tridharma Kencana (TDK) factory in Serang Regency, Banten province. TDK claims of 34% local content for smartphones produced there. “We will continue to promote domestic manufacturing of smartphones, because Indonesian market alone already 60 million units per annum,” said Airlangga.

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Infrastructure & Tourism Industry

The government has engaged World Bank for the development of basic and supporting infrastructure in three tourist destinations prioritized by Jokowi-Kalla administration: Toba Lake (North Sumatra), Borobudur Temple (Central Java), and Mandalika Resort (West Nusa Tenggara). The partnership starts with the provision of masterplan for the tourist destinations within 12 months time, including public roads, homestay, clean water, and sanitation system.

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Growing Optimism for Connectivity (7)

Physical construction progress of Section III of Medan-Binjai toll road in North Sumatra province has reached 99.36% by June 2nd, 2017. Section II, meanwhile, has reached 96%. That means, these sections will soon be entering commercial operation, boosting connectivity in the most populous province in Sumatra Island.

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Infrastructure Journal No.20/2017

Indonesian economy yet to grow faster. That’s true. Investment grade, improved corruption perception index, ease of doing business, and consistency in the development of infrastructure, however, promise future stronger growth. Better infrastructure will also support tourism industry.

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A More Promising Manufacturing Industry

Unilever Indonesia (UNVR), market leader for home & personal care and food & refreshment, has laid out five-year investment plan worth US$500 million to the Government. Following commercial operation of oleochemical plant in Sei Mangkei, North Sumatra, the consumer goods giant plans to build downstream factories in the area, including shampoo and soap.

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The Saturated Tower Market

Solusi Tunas Pratama (SUPR), an independent tower operator, booked net profit of Rp69 billion in the first quarter of 2017, an increase of 23.3% from the corresponding period of 2017. SUPR, where Carlyle is a strategic investor, however, reported only 2.8% growth in sales revenues, while operating profit inched up 1.7%.

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