One property and hotel company with total assets nearly $20 billion on Singapore Exchange (SGX) decided to join other investors in seizing opportunities in Indonesia’s property sector. State oil and gas company Pertamina, meanwhile, sets aside US$5.59 billion of capital expenditures this year, jumped from US$3.6 billion realized last year to support some major projects.
Pertamina dismissed speculations about financial pressures from the government’s decision not to adjust fuel price even though crude oil has touched US$70 per barrel. Other than capex related to Offshore Mahakam block, effectively owned by Pertamina since January 1st, 2018, Pertamina will spend significantly for development of Jambaran-Tiung Biru gas field and expansion of capex for processing + new projects from US$415 million to US$838 million.
In mining sector, Ancora Group plans to start coal production at subsidiary PT Tigadaya Minergy this year. Tigadaya controls coal concession of 10,010 hectares in Sungai Lilin, South Sumatra province.
Bis Industries, Australian mining services company where global investment company KKR is substantial shareholder, has just secured a long-term contract to deliver load and haul services at the Gunung Bara Utama (GBU) coal mine in East Kalimantan province. Fellow Australian company Thiess, as you know, is main contractor for GBU Coal, which is located in Damai sub-district, West Kutai regency.
PROPERTY: UOL Group, a company listed on SGX, meanwhile, has through subsidiaries Pan Pacific Hospitality Holdings Pte Ltd and Pan Pacific Hotels and Resorts Pte, established a new subsidiary in Indonesia: PT Success Venture Serviced Suites Investments (SVSSI) with share capital of US$18 million. Principal activities of SVSSI will be in property/real estate development and investment holding. “The establishment of the Subsidiary is part of the Company’s business development plan to explore new opportunities and expand its footprint in Indonesia,” UOL said Monday (Jan 29).
UOL had total assets of $19.66 billion as at Sept 30, 2017 with sales revenues of $1.29 billion in Jan-Sep 2017, an increase of 18% from the corresponding period of 2016. It owns and/or manages over 30 hotels, resorts, and serviced suites in Asia, Oceania, and North America under two brands: Pan Pacific and ParkRoyal. It operates in 12 countries, including Indonesia.
MANUFACTURING: Looks like that more companies planning expansion this year. Growth Steel Group in North Sumatra, Mark Dynamics in North Sumatra, and Lixil are among them. Lixil (Japan), famous with its American Standard and Grohe brands plans to grow its production capacity after enjoying CAGR 18% per annum in the past five years. Lixil currently produces one million units of sanitrary ware per annum.
IDX-listed Mark Dynamics (MARK) also plans to boost its production capacity of hand former by 30% this year. In the first month of 2018, MARK claimed of securing order for 5.8 million pieces of hand former or around 90% of production target this year (6.5 million pieces).
INFRASTRUCTURE: Minister of public works and housing, meanwhile, expect disbursement of US$300 million loan from World Bank in March for the development of supporting infrastructures in four emerging tourist destinations: Borobudur (Central Java), Mandalika (Lombok), Labuan Bajo (Flores), and Toba Lake (North Sumatra). Disbursement is subject to completion of integrated tourism masterplan, which is also financed by World Bank.
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