Keppel + Metropolitan Land
Keppel Land Limited, subsidiary of Keppel Corporation Ltd, has through PT Sukses Manis Indonesia (SMI) entered into an agreement to jointly develop landed homes on a 12 hectares site in Tangerang, Banten province, with PT Metropolitan Permata Development (MPD), a subsidiary of PT Metropolitan Land Tbk (MTLA).
Outside Java Toll Road Projects So Far
The government missed targets to operate some new toll roads, including those in the trans-Sumatra program, this year due to difficulties in land acquisition and financing in early part of 2016. Entering the third year of Jokowi-Kalla administration, however, the chance is big to see commercial operation of some sections of toll roads developed outside Java.
Express Taxi + Uber
Express Group (TAXI) and Uber have just announced their collaboration and ridesharing integration. Under such program, drivers of Express Taxi will be able to take orders using uberX application, while Uber drivers are given access to financing scheme from Express Group, a company controlled by tycoon Peter Sondakh.
Trans-Java Toll Road Project So Far
State-owned toll road developer and operator PT Jasa Marga Tbk (JSMR) plans to gradually operate 235 KM of new toll roads next year, mostly those under the trans-Java toll road program. The closest to commercial operation is Bawen-Salatiga (17.5 KM) in the Semarang-Solo toll road, whose construction is closer to completion.
Jokowi’s Go-East: Sulawesi Island
Sulawesi, the third most populous island in Indonesia, consumed almost 5 million tons of cement in the first 11 months of 2016, increased by 14.7% from the corresponding period of 2015. The island recorded the highest growth in Indonesia, and has surpassed Jakarta’s cement consumption (4.37 million tons in 11 months).
Revisiting Indonesia AirAsia
AirAsia Berhad has approved the subscription of up to Rp3.04 trillion or around US$227 million nominal value of perpetual securities to be issued by PT Indonesia AirAsia, where it has 49% shares. AirAsia has been under pressure to increase its capital to address the negative equity balance pursuant to the Law No. 1/2009 on aviation.
Property Players to Watch: Multatuli Group
Multatuli Group might not be as popular as Agung Podomoro or Ciputra in the country’s property business. But, in Medan, the capital city of North Sumatra province, which is also the largest city in the island, Multatuli Group is considered one of the largest property developers and listed as pioneer of the development of central business district in the country’s third largest city.
Cement Data & Regional Imbalances (4)
Domestic cement sales inched up 0.3% to 56.5 million tons in the first eleven months of 2016. Disappointing, amidst growing capacity from both old and new players. Export jumped 53.4% to 1.5 million tons, but not enough to absorb higher capacities. Still, the data provides us with some interesting facts.
Revisiting CMNP
Toll road developer and operator PT Citra Marga Nusaphala Persada (CMNP) Tbk is among top losers this year despite its relatively strong performance. CMNP share has lost 33% year-to-date to make a market capitalization of Rp4.5 trillion only. It is valued only at par its equity and traded with PE multiple 8, way below peers and overall market.
Trans-Sumatra Toll Road, So Far
By third month of the year, physical construction progress of Bakauheni-Terbanggi Besar (140 KM) toll road was barely 2%. As of last week, however, progress has reached 17.53%. The first section, Bakeuheni-Sidomulyo (39.4 KM), has even reached 28.3%. How about other sections and other toll road projects under the trans-Sumatra toll road program?