Industries

Claimed itself market leader, state-owned steel manufacturer PT Krakatau Steel (KRAS) Tbk is now worth only Rp4 trillion, not even half its equity (Rp9 trillion by June 30). The first major steel manufacturer in the country, but for decades Krakatau Steel consistently suffered losses despite huge support from the State.

Cement producers came up with mixed results in the first half of 2023. Market leader Semen Indonesia (SMGR) reported squeezed margins, while second largest player Indocement (INTP) posted significantly stronger bottomline. Cemindo Gemilang (CMNT) should have reported net loss without non-cash forex gains.

President Joko ‘Jokowi’ Widodo is currently in China for a State visit. A meeting with President Xi Jinping resulted in the signing of eight agreements, which will naturally lead to higher influence of China in Indonesian economy, including in the healthcare, agriculture, manufacturing, and infrastructure. 

Solo-Yogyakarta is among the busiest roads in the country with 25,000 cars per day traveling between the two cultural cities. People have long waited for a toll road which can cut short travel time from three hours to one hour only. It won’t happen soon, but portion of the Solo-Yogyakarta toll road, built with estimated investment of Rp24.7 trillion, will likely start commercial operation before the end of Jokowi’s term next year.

Ancora Resources (OKAS), controlled by former banker and trade minister Gita Wirjawan, has been ‘forced’ to issue new shares to settle the US$12.358 million loans due to Island Spice Investments Ltd (ISIL). With current market capitalization of US$15.4 million only, Gita’s Ancora Group will see substantial dilution of ownership.

China’s BYD, the world’s largest manufacturer of electric vehicles (EVs), currently has a market capitalization of US$105 billion, twice of USA’s General Motors Co (US$56 billion) as automobile electrification passed the point of no return. Sales of EVs in China, Europe, and, even the slow-start USA, continues to take away the market from combustion engine. 

Minister of Trade, Zulkifli Hasan, on Tuesday (July 11) visited PT Hyundai Motor Manufacturing Indonesia (HMMI) in Cikarang, Bekasi Regency, West Java, where he supported HMMI’s plan to boost investment in electric car. HMMI is a foreign investment company developed with strong support from the Government of Indonesia and the Republic of Korea.

After almost 12 years of development, the 61.6 KM Cileunyi (Bandung)-Sumedang-Dawuan (Cisumdawu) toll road finally entered full commercial operation. Inaugurated by President Joko ‘Jokowi’ Widodo on Tuesday (Jul 11), the toll road is key to full commercial operation of the underutilized Kertajati international airport. 

Ministry of public works and housing plans to auction off development of six toll road projects next year with estimated investment above US$3 billion, including the most anticipated toll road connecting the famous Puncak tourism area in Bogor, West Java.