The Ballooning Royalty & Fees Paid by Multinationals (1)
Holcim Indonesia (SMCB), the third largest cement producer in Indonesia, reported net loss of Rp51 billion in the first half, while two of the largest producers posted substantial profit. Holcim, parent and controlling shareholder of SMCB, however, enjoyed Rp464 billion revenues from the use of HC-Logo by SMCB in the period.
Property Developers to Watch: Wiraland
Wiraland is one of the fast growing property developers in the country. According to the Company’s website, it started out the property business in 2003 and scored success in Medan, the largest city in Sumatra Island. In recent years, the Company has expanded its business to Jakarta and Banten province.
Huawei in Indonesia
President Joko ‘Jokowi’ Widodo met Sun Yafang, chairwoman of Huawei, over the weekend. In the meeting, Jokowi expressed his hopes for more investments from Huawei in Indonesia. What do we know about Huawei’s operations in Indonesia in the past two decades?
Oil & Gas Journal
Russia and Saudi Arabia confirmed on Monday that they had agreed to cooperate to stabilize the oil market and limit output, although experts largely dismissed the statement from the two major oil producers as “lip service.” Crude oil prices initially jumped on the news, but pared gains later during Europe’s session. U.S. crude futures touched highs of $46.53, while Brent futures hit a session high of $49.40 Monday, a peak since August 30, Reuters reported.
Revisiting Indorama Synthetics
Pretty much in contrast to upstream petrochemical company PT Chandra Asri Tbk (TPIA), which enjoyed huge profits from low crude oil prices, downstream polymer producer Indorama Synthetics (INDR) and Polychem Indonesia (ADMG) reported substantial weakening of their performance in the first half.
Kawan Lama Group: Beyond Tools & Home Improvement
Kawan Lama Group is famous for its tools and home improvement retail business through PT ACE Hardware Tbk (ACES), which currently has market capitalization of US$1.3 billion. Alongside expansion of the retail business, Kawan Lama Group boost its presence in the property business.
Rumors on the Appointment of ESDM Minister
We’ve been waiting for the President to appoint a new Minister of Energy and Mineral Resources (ESDM), but as you can see yourself, we still have to wait. For as long as the President has not yet appointed a new Minister of ESDM, rumors and speculations will continue to spread. Right now, the one speculation we’ve heard more and more is that the President would reappoint Arcandra Tahar, now that the former minister’s issue with citizenship has been resolved.
Infrastructure Journal
Budget cut, and further budget cut, won’t stop state construction firms from spending more in infrastructure projects. Financial reports of state EPC firms like Adhi Karya, Waskita Karya, Wijaya Karya, and Hutama Karya, suggested faster pace of infrastructure projects in the country.
New Era for Papua Development
People in Papua and West Papua have over the decades barked at central government on expensive price of construction materials in the eastern most provinces. Until today, cement price in these provinces could be 20 times of the prices paid by people in Java. This, however, might soon be over with commercial operation of new cement mill in West Papua.
Consolidation of State Pharmaceuticals
Jokowi-Kalla administration seems determined to establish holding companies for energy, mining, toll road, and housing. Unfortunately, we haven’t seen serious efforts to consolidate state-owned pharmaceutical companies, which is actually needed in a competitive industry to get benefit from the State’s healthcare program.