Industries

Indonesia is still waiting final investment decision from giants like Tesla and BASF-Eramet in the electric vehicle (EV) ecosystem. BASF-Eramet is scheduled to make decision in the coming weeks for its US$2.6 billion nickel-cobalt salts smelter in Halmahera, North Maluku province. Forget about Tesla for the time being, because it may not come soon.

President Joko ‘Jokowi’ Widodo has on Tuesday (Sep 12) inspected construction progress of Lotte Chemical’s nearly US$4 billion petrochemical complex project in Cilegon, Banten province. Planned since 2012 during SBY administration, we finally see the light under Jokowi.

Nearly 12 years after acquiring local cigarette producer, South Korea’s KT&G has recently secured support from Indonesian government to build new production facilities in East Java province.

We have every reason to be optimistic about the country’s connectivity, especially if the next president continues infrastructure projects started massively by President Joko ‘Jokowi’ Widodo. Extension of the light-rail transit (LRT) and mass-rapid transit (MRT) in Greater Jakarta, expansion of high-speed train (HST) from Bandung to Surabaya, and completion of trans-Sumatra toll road program should be done by Jokowi’s successor.

China might have dominated new major investments in Indonesia, which are mostly focused in metal processing (nickel, copper, and silica sands), but South Korea has stepped up presence through some big initiatives as well. Other than Lotte Chemical’s US$5 billion petrochemical project in Banten, LG Energy Solutions and Hyundai have laid foundations for the country’s ambition to become global hub for electric vehicle (EV) ecosystem. 

Minister of SMEs and cooperatives Teten Masduki, a confidante of President Joko ‘Jokowi’ Widodo, recently sparked national debate related to his remarks about the need to ban TikTok running social media and e-commerce simultaneously. 

Chinese coffee chain Cotti Coffee, the world’s fifth largest, has expanded its presence into Southeast Asia, opening first store in Indonesia at Jakarta’s Kuningan City Mall last month. Cotti Coffee opened its first store in Jakarta only less than a week after opening the first international site in Seoul, South Korea.

Indonesia welcomed 1.12 million visits of foreign tourists in July, an increase of 5.6% from June. That means the country already welcomed 6.3 million visits in the first seven months of 2023, jumped by 197% from the corresponding period last year. 

With the exception of Jembo Cable (JECC) and Kabelindo Murni (KBLM), which reported flat and lower sales, three other cable manufacturers listed on the Indonesia Stock Exchange (IDX) reported relatively stronger performance in the first half of 2023.