The Aggressive New Cement Players
Sales revenues of Indocement Tunggal Prakarsa (INTP), the second largest cement producer, dropped further by 14% to Rp3.38 trillion in the first quarter of 2017. Last year, Indocement also suffered 13.7% fall in sales revenues to Rp15.4 trillion, while operating profit declined by almost 28%.
Toll Road Projects: Update
PT Citra Marga Nusaphala Persada (CMNP), which builds Soreang-Pasir Koja and Depok-Antasari toll roads, was seen lot more aggressive in the first quarter of 2017. Payments to contractors and employees jumped more than 50% from the corresponding period of 2016, while payment for compensation fund of land acquisition reached Rp113 billion against zero in Q1/16.
Electricity Projects Lift Cable Manufacturers in First Quarter
Cable manufacturers were among the best performing stocks on Indonesia Stock Exchange (IDX) this year. Sucaco (SCCO), the largest player, for example, gained 43.6% year-to-date, while second largest KMI Wire (KBLI) already gained 77%. Third largest Jembo Cable (JECC) has also gained 69%, while Kabelindo Murni (KBLM), the smallest, advanced 32.5%.
Infrastructure Journal No.17/2017
State-owned electricity provider PT Perusahaan Listrik Negara (PLN) has spent Rp10 trillion of its cash for development of various energy infrastructure projects in the first quarter of 2017, jumped 50.8% from the corresponding period of 2016. That means PLN has been more aggressive in investment for new power plants, transmission, and distribution.
Q1 Results: Hospitals & Pharmaceuticals
Four companies operating hospitals listed on Indonesia Stock Exchange (IDX)—-Siloam, Mitra Keluarga, Mayapada, and Omni Hospital—-reported sales revenue of Rp2.38 trillion in the first quarter of 2017, an increase of 9.8% from the corresponding period of 2016. Siloam and Omni posted the strongest growth of 12.6% and 26.6% respectively, while Mitra Keluarga and Mayapada improved 1% and 7% only.
Jokowi’s Toll Road Projects: An Update (2)
Waskita Toll Road (WTR), subsidiary of Waskita Karya (WSKT), is set to start commercial operation of Section III and IV of Pejagan-Pemalang toll road this year as physical construction progress reached 81.95% as of last week. Section I and II have been operational in mid 2016, contributing to significant increase of WSKT’s revenues from toll road in the first quarter of 2017.
Jokowi’s Toll Road Projects: An Update (1)
In November 2015, President Joko ‘Jokowi’ Widodo issued Regulation No. 117 about acceleration of toll road development in Sumatra Island. The regulation gives until late 2019 to start commercial operation of eight toll roads. With less than three years left, and given complexity of land acquisition, it is difficult to achieve the target.
Infrastructure & Tourism Industry
AirAsia CEO Tony Fernandes praised Jokowi-Kalla administration for their serious attention in the development of Indonesia’s tourism industry. Other than a more aggressive ‘Wonderful Indonesia’ campaign, Fernandes pointed to broader free-visa facility and development of infrastructure in various areas.
Q1 Results: Conventional Taxi Services
Growing popularity of ride-sharing apps continued to take away market share from conventional taxi services. Blue Bird (BIRD), the largest operator, for example, suffered 18.4% fall year-on-year in sales revenues in the first quarter of 2017. While cost of sales declined significantly by 20%, Blue Bird’s gross profit fell 13.2% to Rp307.7 billion. Net profit also dropped by 15% to Rp117.5 billion in the quarter.
Tax Amnesty Lifts TPS Food
Food processor PT TPS Food Asia Tbk (AISA) booked net profit of Rp593.5 billion last year, jumped by 84% from 2015. Other than improvements in sales revenus (+8.9%) and gross profit (+32%), TPS Food enjoyed non-cash gain from its participation in the tax amnesty program last year.