Improved Infrastructure in East Java
Polling agency Indo Barometer has just released its most recent survey about next year’s presidential race. This time, the agency conducted survey in East Java, the second most populous province in Indonesia. The survey revealed that 81.5% respondents are satisfied with performance of President Joko ‘Jokowi’ Widodo, and majority of them want a second term.
Matahari’s Huge Loss
Matahari Putra Prima (MPPA), operator of big retail format, suffered Rp1.24 trillion of net loss last year against profit of Rp38.48 billion in 2016. The Company, which operates Hypermart, Foodmart, and Boston (health & beauty), reported 7.1% decline in sales revenue to Rp12.56 trillion last year. Why?
Bright Spot of the Economy: Tourism
Indonesia welcomed 1.2 million visits of foreign tourist in February, an increase of 17.36% year-on-year and 9.12% month-on-month. This might be a clearer indication of recovery in the tourism industry following months of correction related to Mt Agung eruption in Bali Island, main destination for foreign tourists in the country.
OBOR Initiative: MCC Lifts Prospect of North Kalimantan
Metallurgical Corporation of China (MCC) gained more grounds in Indonesia. After winning EPC contract for the construction of 3.5 million tons per annum of steel and iron in Sulawesi Island, the giant company recently signed a contract to build 600,000 tons per annum of semi-coke project in North Kalimantan.
Deleveraging Hutama Karya
PT Hutama Karya, the state-owned EPC firm tasked to develop trans-Sumatra toll road, booked net profit of Rp1.07 trillion last year, skyrocketed 255% from 2016, thanks to stronger sales revenue. The Company’s balance sheet, however, has reached an alarming stage with liabilities to equity ratio of 470%.
ACE Hardware & Digital Disruption
“We’ve got winnable weapons,” said Ace Hardware CEO John Venhuizen, when recently asked about digitial disruption from companies like Amazon. “Many people like to still physically see and touch and have the five senses,” argued Fenhuizen as quoted by pymts.com. That’s probably why PT ACE Hardware Tbk (ACES) still reporting strong performance last year.
Improved Infrastructure Outlook
President Joko ‘Jokowi’ Widodo has on Thursday (Mar 29) inaugurated Ngawi-Wilangan section (49 KM) of Ngawi-Kertosono under the trans-Java toll road program. In the meantime, Wilangan-Kertosono section (37.5 KM) is scheduled for commercial operation later this year because construction progress already reached 61%.
Those Continue to Expand: Bosch, Yamaha Musical
Seven companies, including four foreign direct investments (FDIs), have procured industrial land for their respective expansion in an industrial estate located in West Java. Lippo Group, meanwhile, has just signed MoU with ten institutions for the development of research center, healthcare, and regional education facilities with estimated investment of US$550 million at its flagship Meikarta project.
Infrastructure Outlook Improved, Investments? (2)
Eight small investors have recently applied for license to build hotels in Kulon Progo, Yogyakarta. They are among those anticipating commercial operation of the New Yogyakarta International Airport, whose development progressed well with completion of land acquisition this week. Dafam Hotel Group, meanwhile, has kicked off construction of an airport hotel with 200 rooms nearby.
Consolidation of Cement Industry
Cement industry has increasingly become a very competitive business, which should benefit public housing and property development. In the past three years, domestic processing capacity grew 24.5 million tons, of which 15 million tons were added by new entrants such as Semen Merah Putih, Anhui Conch, Siam Cement, and Panasia.