Industries

Mixed news came from various parts of the world. Sales of EV in China, the world’s largest market, were slowed down in the first two months of 2024 due to economic slowdown in the world’s second largest economy. Marke share of EV in the US, the largest automobile market, meanwhile, is predicted to grow significantly this year.

Minister of Health Budi Gunadi Sadikin inaugurated the IVD (In Vitro Diagnostic) medical device factory owned by Chinese medical manufacturer PT Virtue Diagnostics Indonesia in Cikarang, West Java province with US$10 million of investment. Sitting in the 12,200 square meters area, the factory is claimed as the largest IVD medical device in Southeast Asia.

PT Pupuk Kalimantan Timur (Pupuk Kaltim), a subsidiary of state-owned fertilizer holding company PT Pupuk Indonesia continues to expand its production capacity. Interesting to see whether the government will eventually allow the company to launch an initial public offering (IPO).

World crude steel production for the 71 countries reporting to the World Steel Association was 148.1 Mt in January 2024, a 1.6% decrease compared to January 2023. China is estimated to have crude steel production of 77.2 Mt in January 2024, down 6.9% on January 2023. 

For two days, President Joko ‘Jokowi’ Widodo visited South Sulawesi province for reviewing and inaugurating a number of infrastructure projects. The President inaugurated the Centralized Domestic Waste Water Management System (SPAL-DT) in Losari, Makassar with Rp1.2 trillion of investment. Sitting on 2.37 hectares of land, the SPAL-DT has 16,000 cubic meters per day of capacity with 9.6 kilometers length wastewater pipe network, serving 41,000 households. The implementation of SPAL-DT project, which began in November 2020, completed this month. 

Indonesia now has 187 smelters (processing nickel, bauxite, iron, tin, copper, and gold) to supporting government’s program to developing the processing/refining industry and mineral-based industrial areas. The Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) said the government will continue the so-called ‘downstreaming’ program.

Indonesian government proudly announced that the country will be become the first to launch VinFast’s new electric vehicle (EV). VinFast from Vietnam, as you know, has been listed on Nasdaq, New York with market capitalization of US$12.73 billion, slightly smaller than Indonesia’s largest automotive player Astra International. 

Investment in hospitality industry is set to grow faster. The economic crisis caused by COVID-19 pandemic influenced the hospitality industry, causing some projects to be postponed. Gradual recovery of tourism, therefore, is the main driver to revitalization of this industry. 

Domestic demand of steel is now subject to continuation of the ambitious new capital city (IKN) Nusantara project because it is currently the single largest market. Outcome of February 14 election, accordingly, defines future demand of the commodity. 

China’s tire manufacturer Zhongce Rubber Group Co. Ltd (ZC Rubber) has officially announced its plan to construct its second overseas tire factory in Indonesia. The company, in addition, aims to commence tire production at the new facility by the end of 2024. ZC Rubber is also evaluating the possibility of building another plant in Mexico.