Trans-Java Toll Road: Show Me The Money! (2)
Suryanto, acting head of Integrated Investment and Services Office of Madiun Regency in East Java claimed last August that application for new investments surged from Rp58 billion in 2016 to around Rp2 trillion last year because investors anticipated completion of the trans-Java toll road. One of the investors is Mikasa, which builds factory at Purworejo village, Pilangkenceng sub-district, which is adjacent to the exit of trans-Java toll road in the regency.
Trans-Sumatra Toll Road: Show Me The Money!
Incumbent Lampung governor Muhammad Ridho Ficardo claimed investments entering the province surged to Rp5.3 trillion in the first 10 months of 2017 from around Rp4 trillion in full year of 2016. He pointed to growing interest from 47 companies submitted investment applications to the province’s Integrated Investment and Licensing Office (PTSP).
Infrastructure Journal
Indonesia will soon see commercial operation of the first major wind power plant. As of this week, 20 out of 30 turbines for Sidrap wind farm in South Sulawesi have been installed with combined power generating capacity of 50 MW. They’re ready to be connected to PLN’s power grid in the area.
Jokowi’s Susi Dilemma
President Joko ‘Jokowi’ Widodo praised Susi Pudjiastuti, minister of fisheries, for drowning 317 foreign vessels involved in illegal fishing in the past three years before a crowd of his volunteers in a meeting at Rote Island, the southern most island of Indonesia, Monday (Jan 8) afternoon. At the same time in Jakarta, Luhut Binsar Pandjaitan, coordinating minister for maritime affairs, shared the views of VP Jusuf Kalla, that Susi needs to take a break in drowing more vessels.
Jokowi’s Homework: Pending Big Projects
Despite progress in infrastructure development, the government has yet to show its ability in rolling major pending projects in processing industry (chemical, steel, metals), oil & gas, and transportation sector. We’re talking about US$52 billion of investment commitments in 10 major projects, which could boost the economy, create higher pay jobs, boost export revenues, and, accordingly, tax collections.
Tourism Industry
Pretty much as predicted, number of foreign tourists entering Indonesia declined 8.42% from October to 1.06 million visits in November 2017 due to fears of Agung volcano eruption in Bali Island. Still, it represented 5.86% growth year-on-year. That means the country welcomed 12.68 million visits in Jan-Nov 2017, an increase of 21.84% from the corresponding period of 2016.
Welcoming 2018: Infrastructure Push
President Joko ‘Jokowi’ Widodo kicked off 2018 with inauguration of railway connecting Soekarno-Hatta international airport and the Jakarta city center this morning. In the coming weeks, the president is set to inaugurate some toll roads, including Solo-Kertosono (177.19 KM) under trans-Java program and some sections of Bakeuheni-Terbanggi Besar under the trans-Sumatra project.
iCollege Expands Footprint in Indonesia
Indonesia will be the 15th largest economy in the world this year, according to a recent World Bank report. With the current nominal GDP of above US$1 trillion, Indonesia may overtake Australia as the world’s 14th in five years time. Anticipating this, ASX-listed iCollege Ltd, through the proposed acquisition of Manthano, and its partner CECT of Trisakti, one of the largest private universities in Indonesia, decided to expand footprint in Indonesia.
Waiting Krakatau Steel to Report Profit (2)
Four years ago, December 2013, then President Susilo Bambang Yudhoyono inaugurated commercial operation of steel mill Phase I of PT Krakatau Posco, a joint venture between KRAS and South Korean giant Posco. Expectations were high that the JV will contribute significantly to KRAS. The success was expected to follow with construction of Phase II to make a total investment of US$5-6 billion.
Waiting Krakatau Steel to Report Profit (1)
Krakatau Steel (KRAS) is probably one of few market leaders consistently reporting net loss in decades. Some investors have long given up hopes in the state-owned steel producer. In the first nine months of 2017, KRAS booked net loss of US$75 million. Whilst 35% lower than the corresponding period last year, KRAS needs to work hard to regain confidence among market participants.