Equity Policy in Action: Palu SEZ
Palu is the capital city of Central Sulawesi. The province has grown into one of the world’s largest nickel processing centres through billions of USD investment made by Chinese investor Tsingshan Steel Group in Morowali. Up north in Morowali Utara regency, a JV between Indonesian and Chinese investors has also started commercial operation of ferronickel plant.
Equity Policy in Action: Mandalika SEZ
Mandalika-Kuta in Lombok Tengah Regency, West Nusa Tenggara (NTB) province has long been known for its tourism industry potentials. After decades of talk-and-talk, Indonesian Tourism Development Corporation (ITDC) finally declared Mandalika special economic zone (SEZ) ready for commercial operation.
Connectivity Outlook Improved, Investments? (3)
Connectivity outlook in East Kalimantan province improved as 93.02% of land needed for Balikpapan-Samarinda toll road (99.35 KM) has been acquired. In the meantime, around 61% of land for Manado-Bitung toll road (39.9 KM) in North Sulawesi province has also been procured.
Bottled Water Business: Results & Outlook (2)
Almost all major food & beverage business players are in the bottled water business to challenge domination of Danone (Aqua). Salim Group, Wings Group, Orang Tua Group, Nestle, and Mayora are some of them. Competition intensifies, but room for growth and better margins are still there.
Bottled Water Business: Results & Outlook (1)
Shares of newly listed bottled water producer Sariguna Primatirta (CLEO) ended lower by 3.3% to Rp464 yesterday as some investors realized gains. The stock has gained 181% from its IPO price of Rp165 few months back. CLEO is now valued nearly four times equity, significantly higher than ADES and ALTO, two other bottled water producers listed on Indonesia Stock Exchange (IDX).
Chandra Asri & Its Outlook
PT Chandra Asri Petrochemical Tbk (TPIA), the largest petrochemical company in Indonesia, is slated to receive Rp5 trillion from the issuance of 279.74 million new shares at Rp18,000 per share. Barito Pacific (BRPT), Marigold Resources Pte Ltd, and Prajogo Pangestu as controlling shareholders decided to not participating, while SCG Chemicals Co Ltd (Thailand) exercise its rights.
Improved Infrastructure & Tourism Industry
Soekarno-Hatta International Airport in Cengkareng, Banten province, the largest airport in the country, is slated to have advanced supporting infrastructure entering 2018. The first sky-train in the country, connecting Terminal 2 and 3 at the airport, has just entered trial operation this week, while the railway connecting the airport and city center will likely be operational year-end or early 2018.
Invasion of Budget Smartphones
Sales revenue from cell phones at four companies listed on Indonesia Stock Exchange (IDX) declined in the first half of 2017, mainly due to 27.1% fall in sales revenue recorded by PT TiPhone Mobile Tbk (TELE), an affiliate of Telkom Group (TLKM). Samsung and Apple might continue to maintain their position in premium market, but invasion of Chinese brands has intensified.
Major Banks & The Cashless Society
June 2017 was the 50th anniversary of the first automated teller machine (ATM), which was invented by John Shepherd-Barron. As the future is increasingly cashless, most believe cash has reached its final days. Might take sometime for Indonesia to have at least 35% non-cash like Australia (Singapore is the highest of 61%), but reports from major banks suggested a faster transition.
Connectivity Outlook Improved, Investments? (2)
Pretty much as predicted some companies have submitted plans to develop new industrial estates in Central and East Java due to growing optimism in trans-Java toll road and other infrastructure projects. East Java provincial government has identified eight new industrial estates in Jombang, Banyuwangi, Tuban, Gresik, Lamongan, Bangkalan, Madiun, and Mojokerto.