Cement Data in 2017
Domestic cement sales grew 7.6% to 66.35 million tons last year, while export jumped 82.7% to 2.93 million tons. Combined, cement producers sold 69.28 million tons, an increase of 9.5% from 2016. Semen Indonesia (SMGR), the largest cement producer, sold 28.96 million tons last year, an increase of 10.2% from 2016. Lessons learnt?
Improved Infrastructure Outlook: Show Me The Money! (7)
Batang Regency in Central Java province is set to be the new growth center in the country. This is home to US$4.2 billion coal-fired power plant project (2×1000 MW) co-owned by Adaro, Itochu, and J-Power. Early last year, interestingly, South Korean giant CJ Feed opened its new US$250 million feed mill in Grinsing, Batang Regency.
Household Consumption in 2018
Beverages producers suffered negative growth of 1% last year, the first time in the past 10 years, which was attributable to slowdown in the mid-low income segment. Car producers, meanwhile, reported 1.6% growth only to 1.08 million units mainly due to 34% fall in the sedan segment and flat growth of multi-purpose vehicle (MPV). Both industries blamed weak household consumption in the society. Will 2018 be better?
Anti-China Sentiment: Japan Gets More
Luhut Binsar Pandjaitan, coordinating minister for maritime affairs, who is one of trusted aides of President Joko ‘Jokowi’ Widodo published an article about the changing landscape of geopolitics at Kompas, the largest newspaper in the country, yesterday. In the article, Luhut indirectly criticized those frequently suspecting Indonesia’s relationship with one or two new global economic powerhouses.
Infrastructure Journal
Physical construction progress of Indonesia’s first light rail transit (LRT) in Palembang, South Sumatra province has reached 83% as of this week. The LRT is scheduled for trial operation in March. As the first modern mass transportation to enter commercial operation, the challenge is now in the issuance of supporting policies for bigger utilization after Asian Games this year.
Improved Infrastructure Outlook: Show Me The Money! (6)
Nippon Indosari Corporindo (ROTI), market leader for bread, plans to start construction of new factory in Lampung province this quarter. The Company, famous with its Sari Roti brand, expects full commercial operation of the factory in early 2019, anticipating growing demand in southern part of Sumatra, as some sections of the trans-Sumatra toll road will enter commercial operation this year.
Improved Infrastructure Outlook: Show Me The Money! (5)
Luhut Binsar Pandjaitan, coordinating minister for maritime affairs, was in Majalengka Regency, West Java province Wednesday to inspect physical construction of Kertajati international airport. As construction is nearing completion, state airport management company PT Angkasa Pura II and developer of the airport, PT Bandara Internasional Jawa Barat (BIJB), are finalizing their operation cooperation scheme (KSO).
Improved Infrastructure Outlook: Show Me The Money! (4)
Minister of Finance Sri Mulyani Indrawati, Minister of Transportation Budi Karya Sumadi and Minister of Public Works and Public Housing Basuki Hadimuljono were all in North Sumatra yesterday to inspect construction progress of Kuala Tanjung port, set to be an international hub. Phase I of the project with Rp4 trillion of investment is nearing completion and scheduled for commercial operation in the second quarter.
MCC Gets More in Indonesia
Metallurgical Corporation of China (MCC) Limited is clearly a global EPC firm to watch. Last year the Company signed contracts worth RMB602.8 billion, an increase of 20% from 2016, of which RMB57.29 billion worth of contracts were the newly signed overseas projects, including some projects in Indonesia.
Key Takeaways from 2017 Export-Import Data
Indonesia booked trade surplus of US$11.84 billion last year, expanded by 24% from 2016, thanks to strong performance of commodities, especially palm oil, thermal coal, and minerals. Oil and gas sector, however, suffered trade deficit of US$8.57 billion, expanded by 52% from 2016 due to higher prices and import volume.