Cement Market & Economic Disparity
Domestic cement sales reached 62 million tons last year, flat compared to 2015. Interestingly, cement sales in Java Island declined 2.1%, while areas outside Java, with the exception of Kalimantan Island, reported positive growth. Java consumed 54.35% of the total, while outside Java 45.65%.
Trans-Sumatra Toll Roads So Far
State-owned toll road developer and operator PT Jasa Marga Tbk (JSMR) booked net profit of Rp1.89 trillion (Rp277 per share) last year, an increase of 29% from 2015. The Company, one of developers of trans-Sumatra toll road, spent Rp13.9 trillion in investing activities, skyrocketed from Rp4 trillion only in 2015. This is a confirmation of faster development of toll roads in the country.
Revisiting Nickel Projects (2): Tsingshan-Bintang8
Unlike China Hanking, BintangDelapan Group decided to postpone the development of smelter to process low-grade nickel in the Morowali Industrial Park, Central Sulawesi province. The group prefers to export low-grade nickel ores to feed the dormant smelters operated by its partners, Tsingshan Group, in China.
Infrastructure Journal No. 05/2017
President Joko ‘Jokowi’ Widodo led a limited cabinet meeting about development of mass rapid transit (MRT) and light-rail transit (LRT) in Jakarta Monday (Feb 6). Other than demanding completion of the projects in 2018-2019, the President also asked for transfer of technology. Attending the meeting were coordinating ministers and related ministers, including Budi Karya Sumadi (transportation), Rini Soemarno (state-owned enterprises), and Sri Mulyani (minister of finance).
Jakarta Election & Alcohol Rhetorics
Jakarta election campaign will be over soon, at least until February 15. Much have been said by the three pair candidates about all kinds of issues, including their standing on alcoholic beverages and the city administration’s ownership in beer producer PT Delta Djakarta Tbk (DLTA). Some of their rhetorics might end up in policy changes, while others might just end up in the air.
Revisiting Nickel Projects (1): China Hanking
Nickel fell significantly since Indonesian government issued new mining regulations, which, among others, allowing export of low-grade nickel ores. The commodity, key component in the production of stainless steel, however, regained grounds following wider environmental crackdown in the Philippines. Nickel retreated to US$10,160 per ton last Friday in London Metal Exchange (LME), but still substantially higher than the corresponding period last year.
Brighter Side of Manufacturing Industry
Other than rally in commodities, manufacturing may start to contribute more to Indonesian economy this year. Domestic capacity of pulp, raw material for paper, for example, will grow significantly by 31% to 10.43 million tons with commercial operation of Sinarmas Group’s new pulp mill in Ogan Komering Ilir Regency, South Sumatra province this month. This will be followed with commercial operation of Sinarmas’ new tissue plant and RGE Group’s dissolving pulp plant next year.
Salim Group Enters Education Business
Lippo Group, Agung Podoromo, Ciputra Group, Bakrie Group are among major business groups in Indonesia expanding into education services. Lippo is known for its Pelita Harapan University, while Bakrie owns Bakrie University. Kompas Gramedia Group is known for its Multimedia Nusantara University (UMN), but Salim Group?
ANTM: 2016 Performance & Outlook
Aneka Tambang (ANTM) recorded sales revenue of Rp9.11 trillion (unaudited) last year, down 13.6% from 2015 despite higher production volume of nickel ores, ferronickel, bauxite, and alumina. Going forward, other than impacts of recent government policies allowing export of low-grade nickel and bauxite, dynamics in the alumina, coal, gold-silver would define ANTM’s short-term outlook.
Infrastructure Journal No.04/2017
State-owned electricity provider PT Perusahaan Listrik Negara (PLN) has finally signed power purchase agreement (PPA) with a consortium of Pertamina, Marubeni Corp, and Sojitz for the development of 1,760 MW combined cycle power plant in Cilamaya, Karawang Regency, Jawa Barat, otherwise known Jawa-1 project under Jokowi-Kalla’s signature 35,000 MW program on Tuesday (Jan 31).