Conch Group in Indonesia, 10 years later
Conch Group, one of the world’s largest construction material producers based in China, signed a memorandum of understanding with the Indonesian government to pour in US$5 billion for the development of cement factories with ultimate design capacity of 25 million tons per annum in November 2011. The first plant, in South Kalimantan province, entered commercial production in late 2014.
Seaweed Industry: What to expect?
Outgoing president Jokowi has repeatedly reminded the country about the importance of developing downstream/processing industry for seaweed, including for the production of biofuel. Acknowledged as the second largest producer of seaweed in the world, the incoming president Prabowo Subianto is expected to do more on that commodity.
Pressures on petrochemicals & Chandra Asri (2)
Shares of Chandra Asri (TPIA), the largest petrochemical company in Indonesia, ended lower by 3.5% on Wednesday (Sep 11), but its market cap (Rp774 trillion) was 770 times of second largest polyethylene producer PT Lotte Chemical Titan Tbk (FPNI).
Pressures on petrochemicals & Chandra Asri
The Jakarta Post quoted Fajar Budiono, secretary general of the Indonesian Olefin, Aromatic and Plastic Industry Association (INAplas), saying the plastic and petrochemical sectors are bracing for potential mass layoffs because of low utilisation rate of factories amidst growing import. Yet, Chandra Asri Petrochemical (TPIA), the largest player, continues its overtly high valuation in the stock market.
Toll Road Projects Update
President Joko ‘Jokowi’ Widodo inaugurated the commercial operation of the Sigli – Banda Aceh toll road in Aceh province for the section 2 Seulimeum – Jantho (6.26 KM), section 3 Jantho – Indrapuri (16.37 KM), section 5 Blang Bintang – Kuto Baro (7.6 KM), and section 6 Kuto Baro – Baitussalam (5.11 KM) yesterday. Meanwhile, the construction of section 1 Padang Tiji – Seulimeum (24.58 KM) has reached 88.6% of progress in August 2024.
Mass transportation projects update
China was the first country visited by president elect Prabowo Subianto. This was followed with claims from Luhut Binsar Pandjaitan (coordinating minister for maritime and investment affairs) that Prabowo-Gibran government will proceed with the Bandung-Surabaya high-speed train (HST).
Steady recovery of tourism industry
Indonesia welcomed 1.31 million visits of foreigners in July, increased by 9.42% from June 2024. That means the country has welcomed 7.75 million visits in the seven months of 2024, an increase of 20.75% from the corresponding period last year. The total number of foreign tourist visits during this period was the highest since 2020.
Seamless Pipe Industry Update
Seamless pipe manufacturer PT Artas Energi Petrogas and PT Inerco Global International, owned by Hendrik Kawilarang Luntungan, signed the cooperation agreement worth Rp5 trillion for funding the factory’s operation. The factory will be the first seamless pipeline factory in Southeast Asia, located at Krakatau Steel Industry complex in Cilegon, Banten province.
Electric Motorcycle So Far
The government has already allocated US$455 million for electric motorcycle subsidy since it was announced in May 2024. The subsidy will cover the purchase of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles into electric ones.
Green ammonia update
Indonesia is a country with great potential for developing renewable energy as the Government has emphasized Indonesia’s potential as a leading hydrogen and green ammonia producer in the region.