Lippo Digs Deeper for MatahariMall.com
PT Matahari Department Stores (LPPF) Tbk decided to invest additional Rp212.5 billion into PT Global Ecommerce Indonesia (GEI), which develops online shopping MatahariMall. LPPF will then have more shares in PT GEI, while other shareholders, including Mitsui Co Ltd, will have their ownership diluted proportionally.
Infrastructure Financing: Worry Too Much?
The government has just issued three long-term bonds worth US$4 billion on Singapore Exchange with coupon rate of 2.95% (due 2023), 3.5% (due 2028), and 4.35% (due 2048), substantially cheaper than bonds issued in January 2014 by SBY-Boediono administration (6.75% for Notes due 2044 and 5.875% for those due 2024).
Harim Group Heats Up Competition in Integrated Feed Business
Harim Group, a diversified business group based in South Korea, has grown its feed and livestock business in Southeast Asian countries like the Philippines, Vietnam, and Singapore before entering Indonesian market eight years ago.
Coal-to-Chemical: Walk The Talk Please…
We’ve been talking about coal-to-chemical projects in Indonesia for more than one decade now. Nothing happened! The most recent is heads of agreement signed by four companies last Friday. They are state-owned oil and gas company Pertamina, state coal miner Bukit Asam, state fertilizer giant PT Pupuk Indonesia, and the largest petrochemical company in Indonesia, PT Chandra Asri Petrochemical Tbk (TPIA).
Improved Outlook of Mass Transportation
Regardless of outcome of 2018 and 2019 elections, you will see improved mass transportation in Indonesia in two years time. In the coming weeks, you may try the country’s first airport train connecting Soekarno-Hatta international airport and the city center. President Joko ‘Jokowi’ Widodo has just accepted public input for a more affordable fare by giving 30% discount.
Bright Spot of The Economy: Heavy Equipment
Pretty much like commercial cars, sales of construction machinery and heavy equipments shows optimism for the economy. United Tractors (UNTR), market leader for construction machinery, will likely see higher than expected full year sales due to strong demand from mining and construction industry.
Interesting Automotive Data
Indonesian Automotive Association (Gaikindo) recorded car sales of 898,163 units in the first 10 months of 2017, inched up 2.65% only from the corresponding period last year. Interestingly, sales of passenger cars declined 1.05% to 689,159 units in the period, while commercial cars grew significantly by 17.09%.
Japan Invest More in Indonesian Property (2)
After Nishitetsu Group’s partnership with Damai Putra Group, Japan’s major business group Sumitomo Corporation announced a partnership with Sentul City (BKSL) for the development of three condominium towers in Sentul City, Bogor Regency, West Java province today.
Soeryadjaya’s TBIG Gets More from Telkomsel, Mitratel?
Tower Bersama Infrastructure (TBIG), co-owned by Edwin Soeryadjaya’s Saratoga Investama (SRTG), failed to acquire majority shareholding in Mitratel, tower operator subsidiary of Telkom (TLKM). TBIG, however, got more revenues from Telkomsel, another subsidiary of Telkom, which is the largest and most profitable cellular operator in the country.
Bright Spot of the Economy: Tourism
Indonesia welcomed 1.16 million visits of foreigners in October, down slightly from September (1.21 million visits), but improved 11.33% from October 2016 (1 million visits). That means Indonesia already welcomed 11.62 million visits in the first 10 months of 2017, an increase of 23.55% from the corresponding period last year.