New Industrial Estates to Watch
Looks like that Jokowi-Kalla administration is determined to narrow down the gap between regions. Other than massive development of infrastructure, the administration has frequently promoted new industrial centers beyond West Java and East Java. We’ve seen the growth of Kendal Industrial Park in Central Java, which is co-owned/developed by Jababeka and SembCorp, but how about others?
Senipah Combined Cycle
RCR Tomlinson Ltd, a diversified engineering and infrastructure company listed on the Australia Stock Exchange (ASX), has been granted a A$75 million worth of contract to provide a combined cycle addition to the existing open-cycle 92 MWe gas-fired power plant in Senipah, Indonesia.
Qatar Investments in Indonesia
Shares of Indosat (ISAT), the second largest telecommunication company in Indonesia, which is controlled by Qatar’s Ooredoo, ended lower by 1.61% Wednesday (Oct 18). This, of course, is nothing to do with the visit of Qatar Emir Syeikh Tamim bin Hamad Al Thani to Indonesia. The Emir met President Jokowi at the Bogor Palace yesterday to discuss cooperation between the two nations.
Japan, Clear Winner of China Domination Issue?
The government of Indonesia has finally granted 20+7 years of extension for Masela oil and gas block’s production sharing contract. This paves the way for faster development of the US$16 billion project controlled by Inpex (Japan) and Shell (UK). The current PSC for Masela expires in 2028, but Inpex has long demanded extension of the contract to proceed with the LNG project.
Jokowi’s Bet in Infrastructure & Tourism
Jokowi-Kalla administration claims 568 KM of new toll roads operated since late 2014 until the end of this year. This is a big improvement from only around 750 KM of toll road by the end of 2014. The administration, which will have its third anniversary later this week, has also built 2,623 KM of non-toll public road all over the country, mainly in Kalimantan, Papua, and East Nusa Tenggara.
Sinarmas Digs Pocket Deeper for FREN (5)
PT SmartFren Telecom Tbk (FREN) plans to issue another round of mandatory convertible bonds (MCBs) worth up to Rp15 trillion to support the worsening balance sheet. This is the fifth major fund raising by FREN in the past six years.
Emerging Tourist Destination: Likupang
New Bali! That’s the idea long tipped by Indonesian leaders, but has only seriously been implemented in the past three years. Direct international access has been opened to new emerging areas, including Toba Lake in North Sumatra. Out of so many beautiful spots in the archipelago, beaches and small islands in North Sulawesi started to attract foreign tourists and investors.
Opening the Isolation of West Sumatra
West Sumatra is one of regions classified as ‘Prabowo’s province’. Prabowo Subianto won nearly 80% votes in the province three years ago, while Jokowi got only 20%. Compared to other provinces in Sumatra Island, West Sumatra has been left behind in terms of infrastructure development.
Jokowi’s Scorecard: Trans-Sumatra
President Joko ‘Jokowi’ Widodo has on Friday (Oct 13) inaugurated commercial operation of two toll roads in North Sumatra province with combined length of 53.14 KM. They are two sections of Medan-Binjai (11 KM) and five sections of Medan-Kualanamu-Tebing Tinggi (42.14 KM) toll roads. Earlier on Thursday (Oct 12), the President inaugurated commercial operation of first section (7.8 KM) of Palembang-Indralaya toll road in South Sumatra province.
Opportunities from Moving Strategic State Companies to Tanggamus
A plan from minister of defense Ryamizard Ryacuddu to relocate three strategic state companies to Tanggamus, Lampung deserved a thorough exploration. From political perspective, moving the companies out of Java Island might reduce economic gap between regions in the country. But, because we’re talking about tens of thousands of employees, it won’t be easy.