More China Funding in Indonesian FTTH
Chinese financial institutions have aggressively financed development of fiber-to-the-home (FTTH) infrastructure in Indonesia, which boosted the country’s technology providers. On Tuesday, November 21, PT MNC Kabel Mediacom (MKM), subsidiary of Hary Tanoesoedibjo’s Global Mediacom (BMTR) secured US$153 million loan from China Development Bank (CDB).
Promising Cement Data in October
Domestic cement sales grew 12.5% year-on-year to 6.75 million tons last month, thanks to strong growth in Java, Nusa Tenggara, Maluku & Papua. Accordingly, cement sales in the first ten months of 2017 increased by 7.3%, higher than prediction from producers. Export volume, meanwhile, jumped 64% to 2.29 million tons in the period, easing off overcapacity pressures.
Takeaways from October Trade Stats
Indonesia booked trade surplus of US$895 million last month, down 27.6% year-on-year and nearly 50% month-on-month due to stronger import than export growth. The correction was mostly linked to 62% jump in deficit of oil and gas, while surplus in non oil and gas slipped only 2.2% year-on year.
The Growing Manufacturing Investment
PT Synthetic Rubber Indonesia, a joint venture between Michelin (France) and Chandra Asri Petrochemical (TPIA), is scheduled to start commercial operation of the US$570 million styrene butadiene rubber (SBR) plant in Cilegon, Banten province next quarter. As of late September 2017, construction progress reached 93.5%.
Fujita Kanko Heats Up Cikarang Property
Japanese leading hotelier Fujita Kanko Inc has finally decided to build its first serviced apartment in Cikarang, West Java, two years after establishing Indonesian office. The apartment is scheduled for opening in the fall of 2019.
Sugar Barons (3)
PT Pasifik Agro Sentosa, member of Artha Graha Network—-controlled by Tommy Winata, plans to acquire majority shareholding in the troubled sugar producer PT Industri Gula Nusantara (IGN), which is a joint venture between PT Multi Manis Mandiri (MMM) and state-owned sugar company PT Perkebunan Nusantara IX.
Debt Restructuring: Tenaris-Bakrie, Hevilift Aviation
PT Hevilift Aviation Indonesia, which provides fixed and rotary wing aviation services in Indonesia, has issued 3,300 new shares to increase paid-up share capital to Rp156.2 billion. Shareholders of PT Hevilift Aviation decided to convert their respective loans into new equity of the company.
Modern Retail: Reality Check?
Some retailers have recently decided to close down certain outlets for various reasons. Coupled with the collapse of 7-Eleven, some immediately pointed fingers to weakening of purchasing power in the mid-low income group. Others blame aggressive expansion of outlets and growing rental costs in shoping malls.
Bright Spot of The Economy: Infrastructure
Forget about ridiculous policies of new governor and vice governor of Jakarta in transportation sector and the management of the capital city. There are lots of good things out there to talk about. One of them is the upcoming signing of Rp20 trillion syndication loan facilities for Greater Jakarta light-rail transit (LRT), paving the way for commercial operation in two years time. This is also a good news for shareholders of Adhi Karya (ADHI), EPC contractor of the project.
Hary Tanoe’s MSKY: The Sky Is Not The Limit (2)
MNC Sky Vision (MSKY), the pay TV operator controlled by Hary Tanoesoedibjo’s MNC Group, reported net loss of Rp287 billion in the first nine months of 2017 against profit of Rp77 billion in the corresponding period last year due to falling revenues and squeezed margins.