Jokowi-Kalla administration is determined to improve public infrastructure, including access roads to tourism destinations in North Sumatra, West Sumatra, and other areas in Sumatra, home to over 50 million people. Construction of toll roads under the trans-Sumatra program also progressed well despite difficulties in land acquisition. In the meantime, hopes for construction of rail tracks in Kalimantan Island are revived with the President’s new regulation.

Jokowi-Kalla’s signature 35,000 MW program, Palapa Ring fiber optic project, and expansion of fiber-to-the-home (FTTH) by various business groups might have contributed to strong performance of cable manufacturers last year. PT KMI Wire and Cable Tbk, controlled by Gajah Tunggal Group, for example, posted 190% jump in net profit. Voksel Electric (VOKS), meanwhile, booked net profit of Rp160 billion against less than Rp1 billion in 2015.

Winner Group is not as popular as Ciputra, Agung Podomoro, Lippo, Salim, or Pollux Development when it comes to property development in Batam Island, Riau Islands province. Ciputra, for example, mulls Rp5 trillion of investment to revitalize Nagoya Batam complex. Pollux Group, meanwhile, kicked off Rp1.5 trillion property project in the island last year. Agung Podomoro started out Rp4.5 trillion of projects four years ago. Winner Group also looks aggressive in the past few years, betting on the government’s efforts to revitalize investments in Batam, Bintan, and Karimum (BBK).

Greentown China Holdings Limited is one of the largest property developers in China with net sales revenue of RMB29 billion (US$4.2 billion) and net profit of RMB1.9 billion last year. With cash in hands of RMB22.7 billion (US$3.3 billion), the Company has recently joined other Chinese companies in property projects in Indonesia.

Siloam Hospitals (SILO) is among the best performing stocks with 28.4% gain year-to-date. Mitra Keluarga Hospital (MIKA), meanwhile, inched up 1.2% only. Mitra Keluarga, however, currently has market value of Rp37.8 trillion or nearly 11 x equity, while Siloam Hospitals has market value of Rp18.2 trillion or 5.8 x equity only.

Tyre producer Gajah Tunggal (GJTL) booked net profit of Rp627 billion last year against loss of Rp313 billion in 2015 on improved margins. The Company, however, reported significantly weaker performance in the fourth quarter of 2016, when sales revenues inched up 1.3% only, while operating profit declined by 15.5%.

On February 17, 2017, we published an article titled ‘Who’s entering Antangin (Deltomed)?’. In the article, we speculated on an investment company. Yesterday, Saratoga Investama Sedaya (SRTG), investment company controlled by tycoon Edwin Soeryadjaya, informed market participants that its subsidiary PT Saratoga Sentra Business (SSB) has acquired minority shareholding in PT Deltomed Laboratories, producer of Antangin JRG, a herbal remedy for the common cold, for Rp85.7 billion.

Shares of independent power producer Cikarang Listrindo (POWR) advanced 0.81% to Rp1240 this morning to respond the Company’s full year 2016 results. The price, however, represents 17.3% correction from initial public offering (IPO) price less than one year ago, confirming views from some people about valuation of POWR.

One of the biggest criticism towards President Joko ‘Jokowi’ Widodo in his infrastructure development agenda is ‘domination of state enterprises’. Responding to this, minister of transportation Budi Karya Sumadi has since last year offered the opportunity to private sector in the management of airports. In this context, it is important to understand financials of existing operators.