Market

One MW of data center at PT DCI Indonesia Tbk (DCII) is now valued 1.5 trillion, nearly US$100 million. PT Telkom Data Ekosistem (Neutra DC), subsidiary of telco giant Telkom Indonesia (TLKM), is now building a hyperscale data center with 50 MW capacity in the Kabil Integrated Industrial Estate, Batam Island with investment of up to US$500 million.

Unbelievably high valuation of data center has led to the entry of other major business groups into the sector. Pretty much like mining, plantation, renewable or nickel, as of today, almost all major business groups have ventured into data center.

Shares of DCI Indonesia (DCII), a data center service provider or data center, jumped 20% to Rp52,200 on Thursday (Sept 12). At this price, DCI Indonesia was worth Rp124.4 trillion (US$8.7 billion) or 50 times equity, one of the most expensive stocks in the market.

Shares of Unggul Indah Cahaya (UNIC), a petrochemical company co-owned by Salim Group and Wings Group, two of the largest business groups in Indonesia, ended slightly lower by 0.3% to Rp8,950 on Wednesday (Sep 11) to make a market capitalisation of Rp3.13 trillion.

Oil regained grounds slightly this morning after falling 4% to its lowest in three years Tuesday (Sep 10) on concerns surrounding weakening demand in China. Oil has fallen 24% year-on-year, which is a good news for a country heavily relying on import for domestic consumption. 

Charoen Pokphand (CPIN), the largest integrated poultry player, is now worth Rp78.7 trillion, more than four times Japfa Comfeed (JPFA), the second largest player. In the first half of 2024, Japfa came out stronger than Charoen in terms of profit margins. 

Ten years ago, feed producer Malindo Feedmill (MAIN) sold 96 million shares to a group of investors, including private equity firms, at Rp3,500 per share. On Monday (Sep 9), Malindo ended lower by 0.63% to Rp795. That means those stay in the company already booked unrealised loss of 77%. 

BlueBird (BIRD), the largest conventional taxi operator in the country, launched initial public offering (IPO) about ten years ago. The shares were offered at Rp6,500 and in a matter of three months, the stock reached its peak at Rp12,100 in January 2015. Late last week, the stock was traded at Rp1,800 only.

Shares of PT Aspirasi Hidup Indonesia Tbk (ACES), the largest furniture and home furnishing chain in Indonesia ended higher by 0.7 % to Rp720 on Tuesday (Sept 3) to make a market capitalization of Rp12.32 trillion. At the last quoted price, ACES was worth Rp12.32 trillion or 2.08 x equity.

President elect Prabowo Subianto said few months ago that he would implement mandatory B100 (biodiesel 100%) to significantly reduce import of petroleum diesel. Four years ago, state electricity utility PLN reminded the government that B100 could lead to bigger emissions, twice of diesel instead.