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.
Revisiting Kendal Industrial Park
Most sections of trans-Java toll road are slated to start commercial operation this year, including the Pemalang-Batang and Batang-Semarang toll roads. Completion of trans-Java will likely leading to the growth of manufacturing investments from West Java to Central-East Java. West Java might remain the most attractive because of its established infrastructure, but higher land and labour costs might encourage more investors to see Central and East Java.
Walk The Talk: Lotte Chemical’s Cracker
We’ve been talking about Lotte Chemical’s plan to build naphtha cracker with investment of US$3.5 billion for more than one decade now. We might eventually see lights at the end of the tunnel with the recent meeting between minister of industry Airlangga Hartarto and vice chairman of Lotte Group (South Korea) Mr Huh Soo Young.
Bright Spot of The Economy: Pulp & Paper
Pulp and paper producer PT Indah Kiat Pulp & Paper (INKP) Tbk, controlled by Sinarmas Group, is among the best performing stocks with 168% gain year-to-date. At the current price, Indah Kiat has market capitalization of Rp79 trillion or 1.7 x equity (US$3.37 billion by March 31, 2018).
More Promising Cement Data in April
Domestic cement consumption grew 6% year-on-year to 5.34 million tons last month, thanks to strong sales in areas outside Java, especially Sumatra and Kalimantan. Cement export also skyrocketed 165% year-on-year in the month, lifting overall sales growth to 12.8%.
Consolidation of Hospitals Owned by State Companies: What’s Up?
More and more private hospitals and healthcare companies raising fresh money from the capital market through initial public offering (IPO) on the Indonesia Stock Exchange (IDX). Hermina and Royal Prima are the latest to join Siloam, Mitra Keluarga, Mayapada, and Omni Hospitals on IDX. How about the so-called Indonesia Healthcare Corporation (IHC), which would consolidate 77 hospitals and clinics operated by some state companies?
Improved Connectivity Outlook
After years of efforts, including court battles, the government has finally completed land acquisition for Pejagan-Pemalang toll road. Overall construction progress reached 93%, ensuring full commercial operation of the toll road by Waskita Karya (WSKT) in the coming months. Land acquisition for Medan-Binjai and Palembang-Indralaya in Sumatra Island has also been fully completed.
Cement Industry: Survival of the Fittest
Three of the world’s top five cement producers are competing fiercely in Indonesia. They are Lafarge Holcim (second largest behind China National Building Materials/CNBM), Anhui Conch (third), and Heidelberg Cement (fifth). Competition intensifed with the construction start of CNBM’s factory in Central Java province.
Crude Oil Price Hike Threatens Chandra Asri
PT Chandra Asri Petrochemical Tbk (TPIA), the largest petrochemical company in Indonesia, yet to release its first quarter results, but financials of PT Lotte Chemical Tbk (FPNI), competitor of Chandra Asri in polyethylene (PE) resin suggested margin pressures in the quarter.
Labuan Bajo Updates
Ayana Komodo Resort in Waecicu Beach, Flores Island, is scheduled for opening in September 2018 ahead of the IMF-World Bank Annual Meeting in Bali Island. Claimed itself the first and only 5-star resort on Labuan Bajo’s exquisite Waecicu Beach, Ayana lifts the area’s profile.