Trans-Java Toll Lifts Outlook of Industrial Estates & New Townships
State-owned toll road developer and operator PT Jasa Marga Tbk (JSMR) reported significant progress in construction of trans-Java toll roads. Physical construction progress of Jakarta-Cikampek II Elevated (36.4 KM) already reached 13.74% by early November, lifting prospect of industrial and township developments along the road.
Japan Invest More in Indonesian Property
Japan is the most aggressive player in Indonesia’s property business. After Mitsubishi Estate Co Ltd, which joined forces with Gesit Group and Sofjan Wanandi’s Santini Group in Jakarta’s US$260 million office tower project, another Japanese group recently entered into partnership with domestic property player.
Peter Sondakh’s Iron-Steel Bet
PT Surya Langgeng Utama, a wholly owned subsidiary of Peter Sondakh’s PT Rajawali Corpora, has launched a conditional cash offer of $0.02 per share for all of the shares in Indo Mines Ltd that Rajawali does not already own. Indo Mines Ltd, listed on the stock exchange of Australia (ASX), controls iron project in Kulon Progo, Yogyakarta.
Expansion of Airports & Tourism Industry
President Joko ‘Jokowi’ Widodo has just inaugurated new passenger terminal at Silangit International Airport, North Sumatra, which is slated to boost tourist visits to Toba Lake, this morning. The president ordered further expansion of the airport to accommodate wide body aircrafts.
Airport Train, Finally
Antara News Agency quoted then transportation minister Hatta Rajasa on April 17, 2007 that the so-called airport rail link connecting Soekarno-Hatta international airport and Manggarai Station in South Jakarta would start commercial operation in late 2008. We all know, however, until the end of President SBY’s 10-year tenure in October 2014, the project was not even started.
Automotive Industry: Domestic Correction & Export
Correction in domestic sales of cars and motorcycles might continue in the short-term, while export is slated to grow steadily along the growing domestic manufacturing capacity. In the first 10 months of 2017, Indonesia’s export revenues from vehicles and parts already reached US$5.7 billion, an increase of 18.1% from the corresponding period last year.
Interesting Projects in Processing Industry
After more than 25 years, Indonesia will likely see construction of a new oil refinery. It is not a greenfield project, but in the form of fifth refinery unit at Balikpapan complex of state oil and gas company Pertamina. Still, this US$5 billion project will be the second largest oil and gas processing facilities kicked off by Jokowi-Kalla administration after Tangguh LNG Train 3 (US$8 billion) in West Papua.
New Investors Enter Salim Group’s Gallant Venture, Next?
Three investors have subscribed 513 million new shares of SGX-listed Gallant Venture Ltd for an aggregate consideration of S$68.24 million. These investors will then control 9.61% of the enlarged share capital of Gallant Venture, a company controlled by Salim Group, which is also parent of automotive firm Indomobil (IMAS).
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.