Taxation for Cross Border E-Commerce
The government plans to clarify import tax policies for goods imported under the cross border e-commerce model, which is now dominated by Chinese products. Details of the plan, however, yet to be disclosed, including delivery points (custom clearance) and applicable tax rates.
Improved Connectivity Outlook
PT Railink, subsidiary of railway operator PT Kereta Api Indonesia, has successfully launched train services connecting Jakarta city center and Soekarno-Hatta international aiport yesterday. President Joko ‘Jokowi’ Widodo is scheduled to inaugurate commercial operation of the modern mass transportation next week.
Speculating in Lotte Chemical’s Next Move
Lotte Advanced Materials Co, the chemical arm of South Korean retail giant Lotte Group, has signed a deal to acquire PT Arbe Styrindo and PT ABS Industri Indonesia, two plastic resin producers, for undisclosed consideration. Following the acquisition, Lotte plans to invest in upgrading production facilities of the new subsidiaries.
Arla Foods & Indofood Venture
Arla Foods, one of the world’s largest players in dairy business, has decided to enter into a joint venture with Indofood CBP Sukses Makmur (ICBP), the largest food & beverage company in Indonesia. Arla and Indofood will have almost equal share in the joint venture, which will handle sales, distribution, and production of dairy products.
Strong November Construction Machinery Sales
United Tractors (UNTR) sold 409 units of construction machinery last month, the highest monthly sales in years. It surged 109% from November 2016 and 30% above October 2017. Mining and construction, including infrastructure, contributed to the strong performance.
Improved Connectivity Outlook
After two years of construction, physical progress of Bakauheni-Terbanggi Besar, the longest toll road (140 KM) in Sumatra Island, moved closer to completion. As of December 15, 2017, physical construction progress already reached 61%, while some sections are scheduled to start trial operation in the coming weeks.
Q&A with Panorama Sentrawisata
Panorama Sentrawisata (PANR) is one of the largest tour and travel companies in the country. In the first nine months of 2017, Panorama generated sales revenue of Rp3.81 trillion, an increase of 10.4% from the corresponding period last year. Interestingly, revenues from airplane tickets and hotel vouchers grew 14% and 21.4% respectively in the period, amidst pressures from online players.
Another Strong Month for Cement, Oversupply Remains The Biggest Enemy
Domestic cement sales for November 2017 reached 6.4 million tons, an increase of 11.4% year-on-year, thanks to strong demand from property and infrastructure projects. Cement industry, however, needs double digit growth per annum in the coming years to wipe out the current oversupply.
Campina Ice Cream Gains 132%, Overshoot?
Shares of ice cream producer PT Campina Ice Cream Industry (CAMP) Tbk advanced further to Rp765 this morning. That means the stock already gained 132% from its initial public offering (IPO) price few days ago. At the last quoted price, Campina has market capitalization of Rp4.5 trillion, more than five times its enlarged equity. That much?
Telco Tower Politics in Jakarta
PT MRT Jakarta has appointed PT Tower Bersama Infrastruktur Tbk (TBIG), a company controlled by Edwin Soeryadjaya’s Saratoga, as provider of telecommunication services and WiFi for the city’s mass rapid transit (MRT). Separately, supporters of Anies-Sandi in the Jakarta Legislative Council (DPRD) started to make noise about micro cell poles (MCPs) in the city.