Industries

Weaker global demand and flood of imported products in domestic market forced Indonesian textile and garment producers to report substantially lower revenues and margins in the first nine months of 2023. This, unfortunately, might go on until the end of next year.

Shares of Chandra Asri (TPIA), the country’s largest petrochemical company, ended lower by 2.34% to Rp2,920 on Wednesday (Nov 15), while Lotte Chemical Titan (FPNI), the second largest polyethylene (PE) producer behind Chandra Asri, ended slightly lower by 0.51%. 

Foreign affairs minister Retno Marsudi revealed US$25.85 billion of investment commitment by US companies in Indonesia, including two projects from ExxonMobil and Freeport Indonesia with combined investment of US$5 billion.

Minister of Agriculture Andi Amran Sulaiman recently stated that the government plans to develop a sugar factory sitting on 1 to 2 million hectares of land in Papua, with the initial development planned for 200,000 hectares of land.

China, the world’s second largest automotive market, reported 37.5% jump year-on-year for new energy vehicle (NEV) sales to make a market share of 37.4% in October. The gap between electric vehicles (EVs) and combustion engine cars narrowed to a point of no return.

PT Dexin Steel Indonesia (DSI), a joint venture between Tsingshan Steel (China) and Hanwa Co (Japan), has just operated the third blast furnace in Central Sulawesi province, lifting production capacity to 7 million tons in late September 2023. That means the company needed only five years to reach that capacity. 

Some believe Indonesian bottled water market is dominated by two main players: Aqua (Danone) and Le Minerale (Mayora Group). This can be seen in their advertising war in all media platforms. How about medium-small players listed on the Indonesia Stock Exchange (IDX)?

Cimory (CMRY) is now worth nearly US$2 billion despite the fact that it is smaller in size than established players like Ultrajaya (ULTJ) and Indomilk, subsidiary of Indofood CBP Sukes Makmur (ICBP). As mentioned earlier, Ultrajaya is now Rp11 trillion smaller than Cimory in terms of market capitalization.

Shares of milk producer Ultrajaya (ULTJ) ended slightly higher by 0.28% to Rp1780 on Wednesday (Nov 8) to make a market capitalization of Rp18.5 trillion. Smaller player Cimory (CMRY), meanwhile, declined by 1.4% to Rp3,660, reflecting market value of Rp29.5 trillion. So, the gap is Rp11 trillion.

Shares of Kalbe Farma (KLBF), the country’s largest pharmaceutical company, ended higher by 1.57% to Rp1,615 on Monday (Nov 7) even though the company reported a disappointing first nine months of the year, where its net profit dropped 16.9%.