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.
Improved Infrastructure Outlook: Show Me The Money! (3)
Physical construction progress of Manado-Bitung toll road in North Sulawesi has only reached 13%, but state-owned developer and operator PT Jasa Marga Tbk (JSMR) remains optimistic to start commercial operation of the longest toll road in Sulawesi Island next year. Land acquisition is still a big issue, but as of this month, nearly 70% land needed for the project has been acquired.
Mineral Processing: Where Are We?
Nickel advanced 4.72% to US$12,642 per ton this week, representing 28.3% gain year-on-year. Aluminium, meanwhile, lost 3.1% this week, but gained 29.34% year-on-year. Looking at the current pace of development, Indonesia will dominate the world’s nickel market in three-five years time. The country will also improve its position in aluminium market.