Water Projects under PPP Scheme
Some water projects under Public Private Partnership (PPP) scheme have entered construction phase in the past 12 months or so. The biggest is the long-delayed Umbulan water project in East Java involving Medco Group with Rp4.5 trillion of investment, which will supply clean water for 1.3 million people.
Bill on Water Resources (2)
After years of uncertainties, the Government and the House of Representatives (DPR) have on Wednesday (July 18) kicked off deliberation of the new law on water resources. Discussions were held at the House Commission V with minister of public works and housing Basuki Hadimuljono as the government’s key person. Basuki was accompanied by representatives from relevant government agencies, including ministry of forestry & environmental affairs, agriculture, and law & human rights.
Those Continue to Expand: Siam Cement Group (2)
Pretty much as predicted, Siam Cement Group continued its expansion in Indonesia. This time, SCG Retail Holding Co Ltd entered construction material distribution company PT Catur Sentosa Adiprana Tbk (CSAP) through the subscription of new shares. SCG Retail subscribed 405.3 million new shares of CSAP at Rp552.4 per share or a total consideration of Rp224 billion.
Improved Infrastructure Outlook
After years of waiting, the Depok-Antasari toll road connecting suburban areas and Jakarta Outer Ring Road (JORR) is scheduled for trial operation in the coming weeks. In the meantime, broader support from the community will likely see trial operation of New Yogyakarta International Airport (NYIA) in the second quarter of 2019.
Jokowi’s State Capitalism: Angkasa Pura I
PT Angkasa Pura I, the state airport management company, booked net profit of Rp1.045 trillion in the first half ended June 30, 2018, an increase of 18% from the corresponding period last year, thanks to strong revenues growth of 18%. The Company also continued its investments, which can be seen in higher cash used in investing activities in the first half.
Anhui Conch’s Aggressive Approach in Indonesia
We have long speculated about Holcim Cement’s operations in Indonesia, especially after years of losses and growing presence of Chinese cement players in the country. One of the most watched players in the industry, of course, is Anhui Conch, one of the world’s largest and most profitable cement groups.
Those Continue to Expand (2)
Mitsubishi Chemical Corporation informed market participants yesterday about its plan to acquire PT ABC Plastindo, a PVC compound producer based in Tangerang, Banten province. Mitsubishi, already a major player in Indonesia’s petrochemical industry, intends to acquire 100% of ABC Plastindo’s shares from the founders next month.
Those Continue to Expand
Transportation and services company PT Adi Sarana Armada Tbk (ASSA) has established a new joint venture with PT Semangat Bambu Runcing and Time Prestige Investments Limited to develop postal services, logistic, and financial transaction services in the country. ASSA decided to invest Rp63.3 billion in the joint venture.
Naphtha Hits Chandra Asri, Outlook?
Pretty much as predicted PT Chandra Asri Petrochemical (TPIA) Tbk booked net profit of US$73.4 million in the first quarter ended March 31, 2018, down by 31.8% from the corresponding period of last year due to higher prices of naphtha as main feedstock.
Promising Development in Mineral Processing Industry
PT Indonesia Tsingshan Stainless Steel (ITSS) has on June 20, 2018 commissioned a 1 million tons per annum stainless steel factory in Morowali, Central Sulawesi province. This is part of Tsingshan’s integration strategies in Indonesia Morowali Industrial Park (IMIP). Commercial operation of the stainless steel factory will also affect nickel pig iron (NPI) supply from IMIP to China.