Infrastructure Journal No. 03/2017
Indonesia’s sixth president Susilo Bambang Yudhoyono and his network continued to criticize Jokowi-Kalla administration’s infrastructure development. But, looks like President Jokowi is determined to push for faster development instead, especially for power plants, ports, airports, railways, toll roads, bridges, and mass transportation projects.
They Keep Coming (2): IT
Chinese fintech company Wecash has recently established PT Digital Tunai Kita, a joint venture with investment management company PT Kresna Graha Investama Tbk (KREN). Six Capital (Singapore), meanwhile, has signed agreement with Indonesia’s largest university UGM to establish digital innovation center in the country.
Momentum to Clean Up Garuda Indonesia
Shares of Garuda Indonesia (GIAA) opened lower by 1.16% to Rp342 this morning with small trading volume. Looks like that investors subscribed the view of Corruption Eradication Commission (KPK) about bribery case implicating the airline’s former CEO Emirsyah Satar. They also expect the case as momentum to take off.
Malaysians Cancel Participation in Maja Project, IPO of Hanson’s Subsidiary?
Extraordinary meeting of shareholders of Hanson International (MYRX) on Friday, January 13, has approved the initial public offering (IPO) of subsidiary PT Mandiri Mega Jaya (MMJ). On Wednesday (Jan 18), interestingly, Malaysian giant Sime Darby Berhad decided not to pursue the joint venture with Hanson. Two other Malaysian companies also did the same.
Masela Block & Petrochemical Industry
So, the government of Indonesia and investors of Masela Block (offshore Maluku) have agreed to boost natural gas production to 10.5 million tons per annum. They, however, have yet to agree on portion of gas processed into LNG and other, including petrochemicals. Looking at President Jokowi’s recent address about natural resources, the chance is big for petrochemicals.
Astra’s Infrastructure Play
PT Astratel Nusantara, subsidiary of Astra International (ASII), has on Tuesday (Jan 17), signed agreement with PT Interra Indo Resources to acquire 40% shares of PT Baskhara Utama Sedaya (BUS), which owns 45% shares in Cikopo-Palimanan toll road. The acquisition gives Astratel an indirect owners of 18% in the toll road, which started commercial operation in 2015.
Infrastructure Journal No. 02/2017
Improvement in the quality of public infrastructure and the availability of modern ports will be crucial to achieve the government’s target of 20 million foreign tourist by 2019. We’ve seen serious efforts to develop prioritized destinations like Labuan Bajo in Flores Island and Borrobudur Temple in Central Java.
Acquisition Opportunities & Challenges from New Mining Regulations
Freeport McMoRan’s willingness to change its contract of work (COW) into special mining business permit (IUPK) creates bigger acquisition opportunity in the coming years. Newmont and Sumitomo Corp have earlier divested their shares in Batu Hijau gold-copper mine to domestic business groups.
OJK’s Policies
The Financial Service Authority (OJK) plans to issue four strategic policies this year aiming to maintain the stability of the country’s financial service industry. That said policies are (1) managing liquidity risk for conglomerates, (2) net stable funding ratio (NSFR), (3) regulations under the Law for preventing and handling the crisis of financial system, and (4) encouraging non-bank financial industry.
Japan’s Continuing Domination of Indonesian Economy (3)
Some people easily concluded about Chinese domination in Indonesian infrastructure development simply because Jokowi-Kalla administration awarded the US$5 billion Jakarta-Bandung high-speed train to the world’s second largest economy. As shown by Japan’s domination in energy projects here, however, the third largest economy remains dominant player in Indonesia.