Infrastructure Journal No.31/2017
State EPC firm Hutama Karya reported strong progress in the trans-Sumatra toll road project. Physical construction of Bakeuheni-Terbanggi Besar (140 KM) toll road connecting Lampung and South Sumatra provinces has reached 44.65% as of September 8, 2017. Some sections are scheduled for commercial operation this and next year.
Trans-Java Toll Road & Intiland Development
President Joko ‘Jokowi’ Widodo has on Sunday (Sept 11) inaugurated commercial operation of two sections of Mojokerto-Kertosono toll road (24.9 KM) to make a total of 39.6 KM out of 40.5 KM toll road in operation. The toll road, built with Rp5.5 trillion of investment by PT Marga Harjaya Infrastruktur, subsidiary of Astra International (ASII), will be connected to the Mojokerto-Surabaya in the east and Solo-Kertosono in the west.
Regional Economy: North Sumatra
We visited Medan, the capital city of North Sumatra this week to see development of some major infrastructure projects in the province, the most populous in the island. The city desperately needs faster development of public transportation due to growing population and tourism. Takes 90 minutes from Kualanamu International Airport to Medan city center.
CapitaLand Invests More in Indonesia
SGX-listed CapitaLand, one of Asia’s largest real estate developers with a global portfolio worth more than S$80 billion, has decided to invest more in Indonesian property market through S$74.3 million of investment in a 192-unit serviced residence Ascott Sudirman, Jakarta.
Those Continue to Invest in Manufacturing
Two paint manufacturers, PT Asian Paints Indonesia and PT Propan Raya (through its subsidiary PT Propan Dekorindo Raya) inaugurated their new factory yesterday. India’s paint company Asian Paints inaugurated its Indonesia’s first factory in Surya Citra Industrial Estate of Karawang, West Java province with US$40 million of investment, while Propan, which was founded by Hendra Adidarma, spent Rp250 billion for expansion of factory.
Infrastructure Journal No.30/2017: Harvesting Time
After two years of push, some sections of trans-Java and trans-Sumatra toll roads will enter commercial operation this month. This week, Bawen-Salatiga section (17.6 KM) of Semarang-Solo toll road will enter commercial operation, followed by Section II of Kertosono-Mojokerto toll road (19.9 KM) in two weeks time.
Trans-Java Toll Road & Distribution of Manufacturing Industry
Land acquisition for the Batang-Semarang toll road (75 KM) is moving closer to completion. As of August 31st, 2017, 96.55% land for the project have been acquired, lifting hopes for the whole trans-Java toll road program. Following decision from SembCorp and Kawasan Industri Jababeka (KIJA) to develop Kendal Industrial Park, more companies have applied for licenses in Central Java province.
Bright Spot of The Economy: Tourism Industry
Central Bureau of Statistics (BPS) recorded 1.35 million visits by foreign tourists in July 2017, jumped 30.85% year-on-year. Accordingly, number of visits grew 21.57% year-on-year to 7.81 million in the first seven months of 2017. The government expects to achieve full year target of 15 million visits.
Growing Optimism for Lotte Chemical’s US$3.5 Billion Project
After nearly one decade of talks and talks, Lotte Chemical (South Korea) is seen moving closer to build the US$3.5 billion integrated petrochemical complex in Cilegon, Banten province. This was possible following initial public offering (IPO) of Lotte Chemical Titan Berhad (LCTM) on KLSE last month. Total proceeds may be below initial plan, but enough to start the process.
Krakatau Steel: Another Decade of Waiting…
State steel producer Krakatau Steel (KRAS) launched initial public offering (IPO) of its shares at Rp850 per share nearly seven years ago. The stock stayed above IPO price for around 11 months, but has since traded below IPO price. The Company’s joint venture with POSCO, one of the world’s largest steel producers, was seen promising, but three years into commercial operation the JV is still in red.