Emerging Cities: Palembang
President Joko ‘Jokowi’ Widodo is scheduled to inaugurate first section (7 KM) of Palembang-Indralaya toll road (22 KM in total) this afternoon. This will be the first ever toll road in operation in southern part of Sumatra, the second most populous island in the country. As the second largest city in the island, Palembang has attracted more investments in recent years.
Cement Market: Another Strong Sales in September
Cement market continues its positive trend in September with year-on-year sales growth of 12.8% to 6.3 million tons. Compared to the previous month, domestic cement market declined slightly by 2.6%, but in the first nine months it grew 6.6% year-on-year to 47.43 million tons.
Revitalizing Polytechnic and Vocational Schools
President Joko ‘Jokowi’ Widodo has repeatedly criticized education system and programs in the country, which failed to produce skilled manpower. Responding to Jokowi’s concerns, ministry of higher education and research has started revitalization of around 83 polytechnic schools owned by the State this year.
Sweet Temptation: Money & Politics
Like rice, sugar has always been a politically-sensitive commodity in the country. Policies related to the commodity can easily become political commodity as well or accused of carrying economic interest of politically-connected groups. For many decades, we’ve been talking about the so-called seven samurai, a small group of traders controlling sugar market.
Emerging Tourist Destinations: Toba Lake
Toba Lake in the province of North Sumatra is the world’s largest volcanic lake. Samosir, the island located in the middle of the lake, is also the world’s largest island within a lake. Despite its potentials, one needs five-hour or more trip by car from Medan, the capital city and main international gate.
Genting Group + SDIC in Indonesia
Malaysian Genting Berhad is one of the largest groups in the region with interest in various sectors. In Indonesia, Genting operates in oil & gas, power generation, and plantation. Today, President Joko ‘Jokowi’ Widodo inaugurated commercial operation of the group’s first independent power producer (IPP) project in Banten province.
Meikarta & Forest City
Somehow both Lippo’s Meikarta in Cikarang, West Java and Country Garden-Esplanade’s Forest City in Johor Bahru, Malaysia are described as new Shenzen, the China boomtown just across the border from Hong Kong. Both are linked to Chinese money and construction. Forest City estimated US$100 billion of investment, while Meikarta at US$20 billion.
Connectivity Outlook Improved, Investments? (7)
President Joko ‘Jokowi’ Widodo is scheduled to inaugurate commercial operation five out seven sections (42 KM) of Medan-Kualanamu-Tebing Tinggi in North Sumatra on October 10, 2017. Section I (7 KM) of Palembang-Indralaya toll road in South Sumatra is also scheduled for commercial operation this month. They are among nearly 390 KM of new toll roads expected for operation this year.
The End of Asahi-Indofood Partnership
Looked promising in the beginning, but two of Asia’s food & beverage giants Asahi Group and Salim Group decided to part ways. PT Indofood CBP Sukses Makmur Tbk (ICBP), controlled by Salim Group, has on Monday, Oct 2nd, received an offer from Asahi Group Holdings Limited regarding two joint ventures.
Bright Spot of the Economy: Tourism
Central Bureau of Statistics (BPS) recorded 1.4 million international visitors to Indonesia in August 2017, jumped 36.1% year-on-year. This is a new monthly record for the country. Overall, number of visitors grew 25.68% year-on-year to 9.245 million in the first eight months of 2017. Continuing at this pace, full year target of 13 million visits should be within reach, laying foundation to achieve 2019 target of 20 million visitors.