Category: Industries

Joe Biden, who seeks a second term, has asked US authorities to triple taxes (import tariffs) on Chinese steel. This might have significant impact to Indonesian iron and steel industry, which grew fast in recent years thanks to immense investment from Chinese companies.

So, Tim Cook, CEO of Apple, met president Joko ‘Jokowi’ Widodo and president elect Prabowo Subianto in Jakarta Wednesday (Apr 17) with fresh ‘commitment’ to look at ‘possible’ manufacturing investment. While Indonesia is the largest market in Southeast Asia for Apple, the country is seen by the tech giant only as a market. Cook visited Vietnam first, where he committed more investments. 

Satellite internet provider under SpaceX owned by Elon Musk, Starlink has started to fulfill its operating permit in Indonesia. The company is set to run its network operations in May with the initial trial phase in Nusantara new capital city (IKN). Starlink, in addition, is partnering with local internet providers.

Domestic car sales, both wholesale and retail, experienced a decline in the first quarter (Q1) of 2024 compared to the same period last year. This cannot be separated from macroeconomic indicators that are not yet supportive.

Paper producers reported weaker earnings in 2023, while some suffered losses including Fajar Surya Wisesa (FASW) controlled by Siam Cement Group (SCG) and Toba Pulp Lestari (INRU) linked to Sukanto Tanoto, main competitor of Sinarmas Group in pulp and paper business.

Pharmaceutical firm Pyridam Farma (PYFA) plans to launch the rights issue, offering 10.7 billion new shares, representing 95.24% of its enlarged capital, priced at Rp100 per share, to raise total proceeds of Rp1.07 trillion. 

Not only Petrindo Jaya (CUAN) and Barito Renewables (BREN). Petrochemical giant Chandra Asri (TPIA) is member of Barito Pacific Group (Prajogo Pangestu) valued overtly in the market. The stock was last worth Rp504 trillion, more than 10 times equity as at December 31, 2023. 

Steel has increasingly become an export commodity to watch for Indonesia because it emerged as third largest behind coal and palm oil. HRC steel, one of key indicators, has gained nearly 19% in the past 30 days whilst still 17% below the same period last year.

The Ministry of Energy and Mineral Resources (ESDM) is targeting the construction of 16 smelters in integrated mineral refining facilities this year, including seven nickel smelters, where five units have been completed and two units under construction, with a total investment value of US$2.67 billion.

Mixed news came from various parts of the world. Sales of EV in China, the world’s largest market, were slowed down in the first two months of 2024 due to economic slowdown in the world’s second largest economy. Marke share of EV in the US, the largest automobile market, meanwhile, is predicted to grow significantly this year.

Minister of Health Budi Gunadi Sadikin inaugurated the IVD (In Vitro Diagnostic) medical device factory owned by Chinese medical manufacturer PT Virtue Diagnostics Indonesia in Cikarang, West Java province with US$10 million of investment. Sitting in the 12,200 square meters area, the factory is claimed as the largest IVD medical device in Southeast Asia.

PT Pupuk Kalimantan Timur (Pupuk Kaltim), a subsidiary of state-owned fertilizer holding company PT Pupuk Indonesia continues to expand its production capacity. Interesting to see whether the government will eventually allow the company to launch an initial public offering (IPO).