Industries

President Joko “Jokowi” Widodo has on Tuesday (Sep 20) inaugurated two new toll roads, namely the Cibitung-Cilincing toll road (two sections) and Serpong-Balaraja toll road (one section). The Cibitung – Cilincing toll road is part of Jakarta Outer Ring Road (JORR)-2 which links industrial and residential areas in the western and the eastern sides of Greater Jakarta. 

The development of Indonesia’s new capital, Nusantara, is ongoing. There are so many things happening at the same time and in such a short time, while the Government is looking for investors.  Last week, it was made known that the Government was drafting a Government Regulation on Ease of Doing Business. There, the Government is planning to offer several incentives. 

Township and industrial estate developer Kawasan Industri Jababeka (KIJA) has developed Correctio, the so-called ‘Indonesia’s Silicon Valley’ in Bekasi, West Java province. Supported by ministry of industry, the company has engaged state research agency BRIN, Indogen, BISA AI, Telkomsel, Mitsubishi Heavy Industries, Auk Industries, Gamatechno, Arcstone, and SemCorp.

Indonesia’s import expanded only by 3.8% month-on-month in August, but this was mainly due to nearly 17% fall in import of oil and gas. Import of non oil and gas actually expanded 9.23% from July, suggesting a strong domestic economy. 

So, Indonesia booked trade surplus of US$5.76 billion last month, expanded from US$4.2 billion in July thanks to higher export (+9.17%) growth than import (+3.77%). Higher volume of palm oil, iron & steel, and nickel contributed to higher export growth despite correction in international price of the commodities. 

Pusaka Bumi Transportasi, part of the Blue Bird Group, has on Thursday (September 15) signed a memorandum of intent (MoI) with CHETRA LLC, the Russian company that exclusively sells industrial machinery and spare parts. The MoI provides for joint work on the localization of bulldozer production in Indonesia.

More business players have been engaging in decarbonization efforts, including those producing fibers from wood or the so-called cellulose fibers. The Lenzing Group, the world’s giant company for botanic cellulose fibers, is expanding its global clean electricity...

Minister of public works and housing Basuki Hadimuljono and Bali governor I Wayan Koster have late last week kicked off physical construction of the Gilimanuk-Mengwi toll road (96.84 KM) in the resort island. Completion of the toll road will cut short travel time between Gilimanuk and Denpasar from 5-7 hours to 1.5-2 hours only. 

Indonesia’s connectivity improves further with the scheduled operation of six sections of toll roads, including two in Sumatra Island, this month. Nine new dams, meanwhile, are expected to complete physical construction this year to boost base water and irrigation water supply.

Textile and garment industry remains facing pressure from growing entry of imported products. Some local producers have reportedly stopped production as the inventory has been piling up. Unfortunately, the current subsidized-fuel price hike by over 30% would also impact textile and garment industry as the people purchasing power will weaken. Fuel price hike also lead to higher logistic costs, pressing even more the already thin margin.