Those Continue to Invest in F&B
Investment may yet to be in the pace the government wanted to achieve a stronger economic growth, but when it comes to food and beverage industry, companies continue to invest. Beer producer Multi Bintang Indonesia (MLBI), for example, has established a new subsidiary to focus in the beverage business.
Growing Optimism on Connectivity (5)
So, the first set of skytrain for Soekarno-Hatta International Airport has arrived on site. This is the first modern facility for Indonesian airport. State-owned airport management company PT Angkasa Pura II claimed of having spent Rp520 billion for the rolling stock built by Woojin (South Korea) in partnership with Indonesian state company PT LEN Industri.
ESDM to Freeport: IUPK Is Not the Same as KK
PT Freeport Indonesia is still negotiating the conversion of their Contract of Work (KK) to Special Mining License (IUPK) with the Government of Indonesia. The Government, however, has been finding it difficult to come to an agreement with the giant mining company, and the Government seems to be getting even more annoyed that Freeport Indonesia is insisting on maintaining some of terms in its KK for the IUPK.
Total E&P May Seek 39 Percent of Mahakam Block
The Ministry of Energy and Mineral Resources (ESDM) gave the management of the Mahakam Block to PT Pertamina, after Total E&P’s contract for the Block expired. That said, Pertamina is going to partner with Total for the management of the Block. When Sudirman Said was minister of ESDM, the recommendation was for Pertamina to share 30 percent of Mahakam to Total E&P, with another 10 percent to give to the local government of East Kalimantan. But now, under Ignasius Jonan, Total E&P may get up to 39 percent.
Comments on the Newly-Appointed SKK Migas Deputy Chief Sukandar
Minister of Energy and Mineral Resources Ignasius Jonan made Sukandar the new deputy chief of the Special Task Force for Upstream Oil and Gas Business Activities on Friday May 26. Sukandar replaces M.I. Zikrullah. He was one of the candidates to replace the then Pertamina Director Dwi Soetjipto but he didn’t make the cut.
Infrastructurre Journal No.19/2017
President Jokowi expressed his disappointment over slow progress of Jakarta-Bandung high-speed train (HST) project due to difficulties in land acquisition. He also questioned opposition from some groups to the massive infrastructure development in the country. “Other countries reap benefits from advanced infrastructure, but we still debating the benefits of our infrastructure program,” the President said yesterday.
Growing Optimism for Connectivity (3)
Two sections of Medan-Binjai toll road in North Sumatra province are just inches away from completion and commercial operation. One section of Palembang-Indralaya toll road in South Sumatra province, meanwhile, leaves only 12% for completion. Physical construction of the longest toll road in Sumatra, Bakeuheni-Terbanggi Besar (141 KM), has also reached 32% as of last week, lifting optimism for improved connectivity in the resource-rich island.
Revisiting XL Axiata
XL Axiata (EXCL) has recently issued Rp2.18 trillion worth of Sukuk, proceeds of which would refinance existing debentures. Investors responded well the successful fund raising with 32.5% gain year-to-date. Still, EXCL is now valued only 1.5 x equity, nearly half the valuation of Indosat’s equity and one-third of market leader Telkom (TLKM).
Growing Optimism for Connectivity (II)
Greater Jakarta is considered the world’s second largest megapolitan area with a population of over 30 million people. Decades of inaction, however, makes it the worst to live in. People spend five-six hours per day to commute. This is also an area with the most inefficient use of fuel. Compared to the previous administrations, we have to admit that Jokowi-Kalla regime has been lot more aggressive in improving connectivity.
Growing Optimism for Connectivity (I)
For decades, investment and economic activities were focused in western part of Java Island thanks to its more established infrastructure. Things, however, started to diversify easternwards and outside Java in the past few years. Cement consumption in Java grew 7.3% in the first four months of 2017, but western part of Java (Banten, Jakarta, and West Java) was flat at 5.3 million tons.