Growing Optimism for Connectivity (8)
After almost one decade of planning, physical construction of Cengkareng-Batu Ceper-Kunciran (14.19 KM) under the Jakarta Outer Ring Road (JORR)-2 has finally entered physical construction, boosting optimism on connectivity in the greater Jakarta, West Java, and Banten provinces. How about the trans-Sumatra and trans-Java toll road projects?
Infrastructure Journal No.21/2017
Silangit Airport in Tapanuli Utara, North Sumatra province, is set to become an international airport this year to support Toba Lake as one of 10 tourist destinations by Jokowi-Kalla administration. The airport’s runway is being expanded from 2,400m x 30m to 2650m x 45 to accommodate wide-body aircrafts.
In Action: Local Content Policy for Smartphones (1)
Minister of industry Airlangga Hartarto has on Thursday (June 8) inaugurated production facility for Motorola and Lenovo smartphones at PT Tridharma Kencana (TDK) factory in Serang Regency, Banten province. TDK claims of 34% local content for smartphones produced there. “We will continue to promote domestic manufacturing of smartphones, because Indonesian market alone already 60 million units per annum,” said Airlangga.
Infrastructure & Tourism Industry
The government has engaged World Bank for the development of basic and supporting infrastructure in three tourist destinations prioritized by Jokowi-Kalla administration: Toba Lake (North Sumatra), Borobudur Temple (Central Java), and Mandalika Resort (West Nusa Tenggara). The partnership starts with the provision of masterplan for the tourist destinations within 12 months time, including public roads, homestay, clean water, and sanitation system.
Growing Optimism for Connectivity (7)
Physical construction progress of Section III of Medan-Binjai toll road in North Sumatra province has reached 99.36% by June 2nd, 2017. Section II, meanwhile, has reached 96%. That means, these sections will soon be entering commercial operation, boosting connectivity in the most populous province in Sumatra Island.
Infrastructure Journal No.20/2017
Indonesian economy yet to grow faster. That’s true. Investment grade, improved corruption perception index, ease of doing business, and consistency in the development of infrastructure, however, promise future stronger growth. Better infrastructure will also support tourism industry.
A More Promising Manufacturing Industry
Unilever Indonesia (UNVR), market leader for home & personal care and food & refreshment, has laid out five-year investment plan worth US$500 million to the Government. Following commercial operation of oleochemical plant in Sei Mangkei, North Sumatra, the consumer goods giant plans to build downstream factories in the area, including shampoo and soap.
The Saturated Tower Market
Solusi Tunas Pratama (SUPR), an independent tower operator, booked net profit of Rp69 billion in the first quarter of 2017, an increase of 23.3% from the corresponding period of 2017. SUPR, where Carlyle is a strategic investor, however, reported only 2.8% growth in sales revenues, while operating profit inched up 1.7%.
Sinarmas Heats Up Cable TV & Internet Market
Telkom Group’s triple-play service IndiHome is not the only serious player threatening domination of Hary Tanoesoedibjo’s MNC Sky Vision in cable TV market. Massive investments in the past few years now placed Sinarmas Group a more significant player, bigger than Elang Mahkota Teknologi (EMTK) Group.
Tourism: The Economy’s Bright Spot
Indonesia recorded 1.14 million visits by foreign tourist in April 2017, jumped 26.75% year-on-year and improved 7.09% month-on-month. Accordingly, the country reported 4.2 million visits by foreign tourist in the first four months of 2017, an increase of 19.34% from the corresponding period of last year.