Gas-Based Petrochemicals in Bintuni: Walk the Talk Please!
Minister of industry Airlangga Hartarto was in Seoul, South Korea to meet leaders of LG International this week. LG International CEO Song Chi Ho reiterated the group’s interest to invest US$1.3 billion in a petrochemical complex with local partner Duta Firza Group using natural gas from the fields in West Papua province as feedstocks.
Lessons Learnt from Lenzing’s Decision Not to Invest in Indonesia
Lenzing, the world’s giant for botanic cellulose fibers, has decided to build a new state-of-the-art lyocell fiber production plant in Prachinburi, Thailand) by the end of 2020. Lenzing told investors last week that it has decided to establish a subsidiary and purchase property in Industrial Park 304, near Bangkok, Thailand.
Growing Optimism for Connectivity, BUT…(1)
The Soreang-Pasir KoKoja toll road (11 KM) in West Java is scheduled for commercial operation in September 2017, one year behind schedule. Mulyadi, CEO of PT Jasa Sarana, a company owned by West Java provincial government, expressed his optimism yesterday upon reviewing land acquisition and physical construction progress.
Bright Spot of the Economy: Tourism
Visits of foreign tourists grew 26.66% year-on-year to 1.16 million in May 2017, but inched up 1.49% only from April. That means, foreign tourist visits grew 20.85% to 5.36 million in the first five months of 2017. Higher growth of foreign tourists contributed to improvement in occupancy rate of Indonesian hotels to 56.07% from 55.46% in May 2016.
Expecting Recovery from Trikomsel?
PT Trikomsel Oke Tbk (TRIO) booked net loss of Rp59.4 billion in the first quarter of 2017, down from Rp208.7 billion in the corresponding period last year. The ICT retailer actually posted strong sales revenue growth of 18% to Rp474.5 billion. Its gross profit also improved, but the company still reporting operating loss of Rp12.8 billion in the period.
KOP Limited & Indonesian Properties
Three years ago, a consortium comprising subsidiaries of Lian Beng Group Ltd, KSH Holdings Limited, KOP Limited and Centurion Global Ltd acquired 92.8% of the aggregate strata area of Prudential Tower Singapore for S$512.0 million. KOP Limited, which has 25% interest in the consortium, signed agreement with one buyer for eight strata title units, but somehow the deal has been terminated.
Pertamedika Intensifies Competition in Healthcare Industry, Grows Telkom’s E-Health
Pretty much as predicted, ministry of state-owned enterprises has gradually consolidated hospital assets of various state companies into PT Pertamedika Indonesia Healthcare Corporation (PIHC). By far around 40 hospitals have been consolidated into PIHC, which was established late last year.
Infrastructure Journal No. 24/2017
Reliability of electricity supply in North Sumatra and Aceh has increased with early commercial operation of 240 MW marine vessel power plant (MVPP) in Belawan, North Sumatra. The additional capacity entered the system on June 15, lifting overall supply to 2,223 MW, higher than peak load of North Sumatra (1558 MW) and Aceh (355 MW).
China Investment & Outside Java Industrialization
The Government has increasingly been frustrated with continued delay of Freeport’s copper smelter with estimated investment of US$2.3 billion. Chinese investors, on the other hand, have aggressively invested over US$5 billion in the past few years in mineral processing plants in West Kalimantan, Central Sulawesi, Southeast Sulawesi, North Maluku, and Maluku provinces.
Equity Policy in Action: Electricity
Teluk Balikpapan coal-fired power plant (2×100 MW) has recently entered commercial operation in East Kalimantan. Takalar coal-fired power plant (2×100 MW) in South Sulawesi province will follow because its construction progress reached 76% by late March 2017. Development of these projects was started by SBY-Boediono administration.