Weaker Q4 for Fajar Paper
Pulp and paper producer PT Fajar Surya Wisesa (FASW) Tbk booked net profit of Rp778 billion last year against net loss of Rp309 billion in 2015 thanks to higher sales revenue growth of 18.4% and improved margins. Unfortunately that the Company’s performance weakened substantially in the last quarter of the year.
Vale Indonesia: FY16 Results & Outlook
Shares of Vale Indonesia (INCO) ended lower by 3% to Rp2590 Thursday (Feb 23) as investors responded to full year 2016 results and likely outlook of nickel. The Company booked net profit of US$1.9 million last year, collapsed 92.6% from 2015, due to 22% fall in average selling price of nickel to US$7,396 per ton.
Revisiting Lotte Chemical’s US$3-4 Billion Project in Cilegon
Kim Gyo Hyun, CEO of Lotte Chemical Titan Holding Sdn Bhd, met minister of industry Airlangga Hartarto in Jakarta late last week. Airlangga was accompanied by Thomas Lembong, head of Investment Coordinating Board (BKPM). They discussed status of the long-delayed petrochemical project in Cilegon, Banten province.
A Boost to Trans-Sumatra Toll Road Program
The government has on Wednesday (Feb 22) signed toll road concession agreement (PPJT) for the development of 143.25 KM toll road connecting Kuala Tanjung port, Kualanamu airport, and Toba Lake in North Sumatra province. While state-owned Hutama Karya has been assigned to build trans-Sumatra toll road, in this particular project Jasa Marga (JSMR) and Waskita Toll Road will control majority shares.
Steel Industry & Metals
World crude steel production for the 67 countries reporting to the World Steel Association (worldsteel) was 136.5 million tonnes (Mt) in January 2017, a 7.0% increase compared to January 2016, lifted mostly by 7.4% growth of China’s output to 67.2 million tons in the month and euphoria in President Trump’s infrastructure program.
Revisiting Saudi Arabia Investment in Indonesia
Saudi Arabia king Salman bin Abdulaziz Al Saud will visit Indonesia from March 1st to 9th, bringing a big delegation of 1,500 people, 10 ministers, and 25 prince. Other than one of the largest delegations, this is also a historic visit in almost 50 years. The last time Saudi Arabia King visited Indonesia was back in 1970. President Jokowi also plans a special treatment, welcoming the King at the airport.
A More Efficient BTPN
Bank Tabungan Pensiunan Nasional (BTPN), controlled by Sumitomo Mitsui Banking Corporation, booked net profit of Rp1.75 trillion last year, relatively flat from 2015. The bank streamlined its operations last year, but managed to grow significantly its assets by 12.7% to Rp91.37 trillion.
Optimism on Toll Road Projects
Public have every reason to be optimistic about toll road projects in Java, Sumatra, Sulawesi, and Kalimantan. The Solo-Ngawi toll road (90 KM), for example, will be functional during this year’s exodus for Lebaran holidays because physical construction of Colomadu-Karanganyar (20.9 KM) has reached 97.21% this week.
PE Firm Enters Kamadjaja Logistics
Kamadjaja Logistics, controlled by the family of Hura Kamadjaja, is one of the largest logistic companies in Indonesia, providing services to consumer goods giants like Unilever, Indofood, Garudafood, Sosro, Orang Tua, Nestle, P&G, etc. One private equity firm has reportedly entered the group.
Nickel Smelters (4): Tsingshan & Xinxing
Nickel ended at US$10,900 per ton on London Metal Exchange (LME) Friday (Feb 17), the highest level since Indonesia resumed export of low-grade nickel ore, even though opening stocks grew further to 379,494 tons. As explained before, with or without export of low-grade nickel ores, supply of nickel from Indonesia would continue to grow in the coming years from commercial operation of new smelters—-nickel pig iron (NPI) and ferronickel.