Infrastructure & Tourism Industry
We have just visited some interesting tourism destinations in Flores Island last week. While we appreciate the government’s efforts to improve basic infrastructure in Labuan Bajo, the main gate to Komodo national park, Pink Beach, and Padar Island, access road to inland destinations like Wae Rebo cultural heritage village needs to be fixed immediately.
Sat Nusapersada & Local Content Policy for Smartphones
Contract manufacturer PT Sat Nusapersada Tbk (PTSN) has recently signed investment credit facility with state bank Mandiri (BMRI) for the construction of the 12th factory to anticipate growing demand for smartphones amidst the government’s local content policy.
A Promising Tourism Industry
Indonesia welcomed 1.3 million visits of foreign tourist in April, an increase of 11.04% year-on-year. In the first four months of the year, the country welcomed nearly 5 million visits, grew 13.83% from the corresponding period of 2017. Sam Ratulangi international airport in Manado, North Sulawesi continued to be the hot spot with 65.5% jump in the period.
Toll Road Projects Update (4): Sulawesi & Kalimantan
North Sulawesi province has set an ambitious goal to welcome one million visits of foreign tourists by 2025. Last year, Sam Ratulangi international airport in Manado was the best performing in the country with nearly 90,000 visits of foreign tourists, jumped 80% from 2016. Given difficulties in expanding the airport’s handling capacity, it seems remote from achieving the target.
Toll Road Projects Update (3): Trans-Sumatra
Completion of two other sections of Palembang-Indralaya toll road in South Sumatra is behind schedule. Still, because 100% land has been acquired, the toll road shall be commercial during Asian Games 2018 in Palembang. As of May 25, physical construction progress reached 70% (Section II) and 99% (Section III).
Investment to Watch: China Jinjiang
China Jinjiang Environment Holding Company Limited, a leading waste-to-energy (WTE) operator in the People’s Republic of China (“PRC”), announced the acquisition by its wholly-owned subsidiary PT Jinjiang Environment Indonesia of a 95.0% stake in PT Indo Green Power (IGP), which has secured a concession to construct, own and operate a WTE facility in Palembang, South Sumatra province with a total installed waste treatment capacity of 1,000 tons per day.
Toll Road Projects Update (2): Trans-Java
This year’s annual exodus for Lebaran holidays should be better with functional operation of almost all main sections of trans-Java. Families can save more time and money from congestions usually seen in similar exodus in the past. Slightly behind schedule, Section III and IV of Pejagan-Pemalang should be commercial after Lebaran because 100% land had been acquired, while physical construction progress already above 91% until last week.
Toll Road Projects Update (1): Greater Jakarta
Compared to projects under the trans-Java and trans-Sumatra toll road program, development of toll roads in the Greater Jakarta area, which are more prospective, has been pathetically slow. The recently signed special loan of Rp7.16 trillion from state bank BRI to Waskita Toll Road (WTR), subsidiary of Waskita Karya (WSKT), might be a boost.
Those Continue to Expand: Chandra Asri
Chandra Asri (TPIA), the largest petrochemical company in Indonesia, confronts short-term pressures due to over 50% jump of naphtha price in international market, but doesn’t stop it from expanding capacities. Few days ago, the company appointed Toyo Engineering, its long-time EPC contractor, for the construction of MTBE and Butene-1 plants in Cilegon, Banten province.
Taking Indonesia-India Relationship to New Level
President Joko ‘Jokowi’ Widodo and visiting India Prime Minister Narendra Modi witnessed the signing of 15 MoUs, including six between private sectors from both countries. State military industry PT Pindad, for example, signed MoU with Bhukanvala, while pharmaceutical giant PT Kalbe Farma Tbk (KLBF) signed MoU with The Himalaya Drug Company.