Market

It is like a five-year ritual to hear someone promised self-sufficiency in food and energy. Unfortunately that’s the main them of Prabowo Subianto’s first speech as president. He cited experts convincing him that Indonesian can achieve the food self-sufficiency in four to five years. 

So, Rosan P Roeslani, former CEO of PT Berau Coal Energy Tbk (when the company was controlled by Bakrie Group, now under Sinarmas Group), has been reappointed minister of investment in the Prabowo cabinet. The difference, the ministry’s name is changed to ‘ministry of investment and downstreaming. 

As the problems for PT Waskita Beton Precast Tbk (WSBP) was getting worse, the shareholders decided to take a different route. We all know that towards the end of 2023, the subsidiary of PT Waskita Karya (Persero) Tbk (WSKT) is being sued by one of its creditors, PT Bank DKI. At the heart of the dispute is the decision to settle debts through Mandatory Convertible Bonds (OWK) which, supposedly, was not approved by Bank DKI. In early 2024, Bank DKI withdrew this lawsuit, only to file a new lawsuit in a different district court. Not long ago, we learned that Bank DKI won the lawsuit, and this is why the dispute continues. WSBP immediately appealed the decision while the shareholders recently submitted a formal complaint against the Panel of Judges to the Judicial Commission (KY).

“Indonesians are overburdened by academic titles. They can’t work effectively,” one former finance minister once said. In recent years, we’ve seen so many political leaders secured PhD or Dr title or even honorary professorship. The latest, with lots of controversies, is Dr Bahlil Lahadalia, who graduated with cum laude from University of Indonesia. 

Central government under Prabowo Subianto’s presidency will expand significantly. Number of ministers will grow by 35%, while number of vice ministers ballooned to sky high. Coordinating ministers almost doubled as well. With them, special staffs will grow exponentially because one minister may bring in five. 

The composite index of Indonesia Stock Exchange (IDX), despite its credibility issue, was not upbeat with the likely cabinet lineup of the new Prabowo-Gibran administration. The stock market  and rupiah moved in narrow range in the past few days as market players didn’t expect surprises in fiscal, investment, and monetary policies.

Angel Yeast, China yeast biotech manufacturer, is partnering to set up a subsidiary with Tunas Baru Lampung (TBLA), a producer of palm oil, biodiesel, and sugar controlled by Oey Family (Sungai Budi Group) with the capital worth RMB381 million (approximately US$54.29 million).

Indonesia’s export in September declined 5.8% month-on-month, but expanded 6.44% year-on-year. Higher volume and price of some key commodities contributed to the strong year-on-year growth. 

Sinarmas Group’s Widjaja Family acquired some properties in London (UK), while RGE’s Sukanto Tanoto purchased high-profile assets in Germany. This time, Musim Mas Group’s Karim Family acquired a property in Tokyo, Japan.

With a population of around 280 million people, Indonesia will continue to attract investments in healthcare sector. Despite downfall of middle-income group in the past ten years, improvement in the universail healthcare program (BPJS Kesehatan) and potential collaboration with private insurance facilities are seen main stimulus for growth in the sector.