Growing Investments in Steel and Mineral Processing Industry (2)
Taliabu is an island in North Maluku province with a population of 56,000 people. Traditionally known for its clove production, the island has attracted major business groups like Salim and Djarum. Two years ago, Salim Group awarded US$187 million contract to PT Cipta Kridatama, member of ABM Investama (ABMM), for mining services of the so-called Taliabu pig iron project.
Growing Investments in Steel and Mineral Processing Industry (1)
Steel is still the largest import commodity for Indonesia outside refined oil. Growing demand from construction (infrastruture, public housing, and commercial properties), automotive, and manufacturing combined with policy changes in China and mandatory domestic processing of minerals in Indonesia, however, have led to decisions from major players to invest more in the country.
Trans-Sumatra Toll Road & Investments
Coca-Cola Amatil Indonesia (CCAI) has just launched a new production line in its factory in Medan, North Sumatra. Built with US$20 million of investment, the new production line will support distribution of Coca-Cola in the whole Sumatra Island. Improved connectivity in the island, home to over 50 million population, is expected to reduce logistic costs for fast-moving consumer goods (FMCGs).
Those Continue to Invest (2)
NYSE-listed company Cloudera Inc, a leading platform provider for machine learning and analytics optimized for the cloud, announced official launch of its entity in Indonesia. Cloudera’s expansion into Indonesia was strategically charted to bolster the government’s Smart City initiatives and upskill professionals across the technology industry.
Those Continue to Invest
Pretty much in line with our research, data from ministry of state-owned enterprises suggested strong investments by state companies in the first half of 2017. The ministry pointed to capital expenditures of Rp111 trillion in the first half, surged by 40% from the corresponding period of 2016. It is still way below full year target of Rp468 trillion though.
Backdoor Listing of Indonesia Airasia
After years of on-and-off plan for an initial public offering (IPO), PT Indonesia Airasia will indirectly list its shares on Indonesia Stock Exchange (IDX) through PT Rimau Multi Putra Pratama (CMPP) Tbk. Shareholders of CMPP are set to make decision about the issuance of new shares in early October, proceeds of which will be mostly used to purchase perpetual securities that can be converted into the shares of Indonesia Airasia.
Infrastructure Journal No.29/2017: More Backups
We’ve seen growing interest from major business groups to invest in the country’s infrastructure. Medco Group and Salim Group, for example, have set footprints in clean water supply business. Adaro Group has also expanded into this business with two water processing facilities in Gresik (East Java) and Banjarbaru (South Kalimantan).
Trans-Sumatra Toll Prospect Lifted
President Joko ‘Jokowi’ Widodo has recently signed Regulation No. 81/2017 assigning state-owned EPC firm PT Hutama Karya as operator of Tanjung Priok Port Access Toll Road. Given its strategic position, the toll road will provide Hutama Karya with more cash to support the trans-Sumatra toll road program.
Promising July Data for Equipment
United Tractors (UNTR) recorded Komatsu construction machinery sales of 310 units last month, jumped 77.1% year-on-year, thanks to strong purchase from agriculture, forestry, and mining. Correction continues for construction industry, but strong demand from three other sectors supported the market leader.
Connectivity Outlook Improved, Investments (3)
Sei Mangkei was initially an industrial estate developed by state-owned plantation firm PT Perkebunan Nusantara III in North Sumatra province. Later on, the government lifted its status as special economic zone (SEZ) with an ambitious target to receive US$10 billion of investments until 2031.