Infrastructure Journal
Cement sales in November 2016 was a big disappointment to domestic producers. They pointed to weak demand from property sector and lower than expected demand from power plant, mineral processing projects, and budget cut in some infrastructure projects. Still, we see solid progress of some signature infrastructure projects, including LRT, MRT, and toll roads this year.
Oil & Gas Journal
Indonesia’s Energy and Mineral Resources Ministry (ESDM) aims to replace the cost recovery scheme in the oil and gas industry in January 2017. Instead, the government would use contracts with gross profit sharing mechanism. The new scheme would simplify procedures and thus hopefully make investment more attractive.
Mitsui Enters Indonesian Toll Road Project?
Mitsui is one of Japanese companies actively involved in major infrastructure projects in Indonesia. Its flagship project is New Priok Port in Jakarta as partner of state-owned port management company Pelindo II. Both are reportedly targeting Patimban port in West Java as well. In the power business, Mitsui is largest shareholder in Paiton Energy, the largest IPP in Indonesia at the moment. How about toll road?
Tommy Winata & Artha Graha Network: The Bank
Bank Artha Graha (INPC), controlled by tycoons Tommy Winata and Sugianto Kusuma, had total assets of Rp26.1 trillion as at Sept 30, 2016, slightly smaller than Bank Sinarmas (BSIM). INPC’s assets grew 137% from Rp11 trillion in 2006, while BSIM expanded from around Rp6 trillion in 2008.
Infrastructure Journal
Indonesian economy needs stronger investments in various sectors to grow faster. Investors, however, want to see improvement in logistics and infrastructures, Indonesia’s weakest point vis-a-vis neighbours. Other than laying strong foundation for future growth, infrastructure development is a social safety net, absorbing millions of workers kicked out from resources industries in the past few years.
Rekso Group’s Hospitality Business
Rekso Group, controlled by Sosrodjojo family, is famous for its bottled tea Sosro. The group is also known as operator of McDonald’s fast food restaurant chain in the country, which was acquired few years back. Accordingly, Rekso is considered one of market leaders in F&B business. Like other conglomerates, Rekso has interests in some other businesses, including agriculture, manufacturing, trading, and property. In this issue, let’s talk about the group’s property business.
Precast Business: Waskita vs WIKA
Waskita Beton Precast (WSBP) booked net profit of Rp392 billion in Jan-Sep 2016, jumped by 85.7% from the corresponding period of 2015, thanks to strong sales revenue growth of 89.7% to Rp3.07 trillion. Wijaya Karya Beton (WTON), meanwhile, posted net profit of Rp164 billion, also jumped by 87.4% from the same period last year. Both are benefited from infrastructure projects, especially public transportation projects.
Pisma Group’s Property Business
Pisma Group is known for its garment and textile business. The Group is known through its famous brand Gajah Duduk, which is market leader for sarong. Other than textile and garment, the group is engaged in plastics, molding, health, telecommunication, trading, and property. In this issue, let’s talk about the group’s property business through PT Pisma Gajah Putra.
Infrastructure Journal
Physical construction progress of Jakarta mass rapid transit (MRT) has reached 60.22% by late November 2016. The chance is bigger now to see commercial operation of the modern public transportation in 2018. In this edition: (1) Trans-Sumatra toll road, (2) JORR II toll project.
New Equity to Watch: Prodia Widyahusada
PT Prodia Widyahusada Tbk (PRDA), engages in health service and laboratory clinic, will kick off trading of its shares on the Indonesia Stock Exchange (IDX) this morning. It will list 937.5 million shares. At price of Rp6,500 per share, the stock will start trading with market capitalization of Rp6.09 trillion. This is the first of such company on IDX, so it might set the tone for followers.