Industries

Indonesia is targeting to build its first Special Economic Zone (SEZ) for health and tourism in Bali Island as the President Joko “Jokowi” Widodo has officially established the said SEZ with Rp10.2 trillion of investment. 

Kudos to the Jokowi administration! After three decades, the Bekasi-Cawang-Kampung Melayu (Becakayu) toll road, which connects Jakarta and Bekasi in West Java province, has finally completed and will soon fully operational.

The Dutch animal feed producer company De Heus has recently opened its fourth animal feed factory in an area of five hectares in the Pasuruan Industrial Estate Rembang (PIER), East Java province, which is managed by the state-owned company PT Surabaya Industrial Estate Rungkut (SIER).

Oversupply and higher energy costs are still the main challenges faced by cement makers. In the first nine months of 2022, cement makers came up with mixed results. Semen Indonesia (SMGR), market leader, posted 19.5% increase in net profit, while second largest player Indocement INTP) reported a 21.6% fall in net profit. 

Investors were not impressed by financial performance of state steel producer Krakatau Steel (KRAS). Shares of KRAS collapsed 6.91% Tuesday (Nov 1) even when the company reported profit attributable to owners of US$80 million in first nine months (9M) to September of 2022, grew 35.6% year on year (y/y).

Construction of a petrochemical plant, slated to become one of the world’s largest, in the Kuning-Mangkupadi Indonesian Green Industrial Estate (KIHI), Tanjung Palas Timur District, Bulungan Regency, North Kalimantan province, is scheduled to start next year.

Shares of Chandra Asri (TPIA), the country’s largest petrochemical company, have fallen from peak at Rp10,750 in early April to as low as Rp2,440 on Monday (Oct 31) to make a market capitalization of Rp52.8 trillion in line with the weakening bottom line. 

The future of the new capital city Nusantara in East Kalimantan province might be one of the biggest concerns of President Joko “Jokowi” Widodo, whose term will end October 2024. While State Budget for the project will increase significantly next year and that construction has progressed super fast for some government buildings, some are still worried about post-2024.

Ministry of information and communication has confirmed physical construction for the first national data center (NDC) in Bekasi Regency, West Java province next month. This will be followed with the second NDC in Batam Island, Riau Islands province.