Geothermal Race
Some organized a public discussion last week to basically oppose ministry of state-owned enterprises’ plan to ask PT Perusahaan Listrik Negara (PLN) acquiring geothermal subsidiary of Pertamina (PGE). Somehow, the government asks PLN to acquire PGE just when PGE plan to acquire geothermal assets of Chevron in Indonesia, which are also targeted by global investors.
Japan’s Investments in Indonesia
President Joko ‘Jokowi’ Widodo held the fifth meeting with China President Xi Jinping in Hangzhou, China last Friday. On Saturday, Jokowi talked before a business forum in Shanghai in a bid to offer investment opportunities in Indonesia. Some might immediately jump into conclusion about closer relationship between Indonesia and China vis-a-vis Japan. Japanese investors, however, have continued their expansions in the country.
Alibaba in Indonesia
Visiting Indonesian President Joko ‘Jokowi’ Widodo met leaders of Alibaba Group in Hangzhou, China before the G-20 meeting in the country. Thomas Lembong, head of Investment Coordinating Board (BKPM), said in the meeting Jokowi asked Alibaba to be more active in promoting Indonesia’s tourism potentials and export products.
Tax Amnesty in Action (19): Dr Tahir (Mayapada)
Dr Tahir, brother-in-law of James Riady, has decided to participate in the tax amnesty program. He has yet to declare or repatriate assets, but promised to do so in the coming weeks. What to expect from his participation?
Tax Amnesty in Action (17): James Riady
The rumour has been confirmed. James Riady might have become the first conglomerate to publicly announce participation in the tax amnesty program. He made public his participation on Friday (Sept 2) afternoon after declaring his assets at the Sudirman Large Tax Office, Jakarta. James refused to declare the amount of assets declared, but appealed to fellow conglomerates to join the program.
Tax Amnesty in Action (16)
One conglomerate known for overseas assets and thousands of shell companies is said to publicly announce his participation in the tax amnesty program this afternoon. As to whether this is real, let’s wait. Yesterday, however, was the new record in the program, where 2397 taxpayers declared Rp27.3 trillion worth of assets.
Sarana Menara vs Peers
PT Sarana Menara Nusantara Tbk (TOWR), controlled by Djarum Group, booked net profit of Rp1.3 trillion in the first half of 2016, an increase of 12.6% from the corresponding period of 2015 on stronger sales revenue growth from acquisition of operating assets and new businesses (MWIFO, Internet, and VSAT services).
Relaxation of Mineral Ore Export: Self-Destructing (2)
Acting minister of energy & mineral resources Luhut Binsar Pandjaitan told lawmakers Thursday (Sept 1) that relaxation of mineral ore export is needed to help cash-flow of companies building the smelting facilities. We believe this is a self-destructing policy, given ongoing pressures in the metals market and sacrifices by some companies already investing in mineral processing.
Pressures on Hary Tanoe’s Pay TV Business
MNC Sky Vision (MSKY), controlled by Hary Tanoesoedibjo—businessman cum politician, was still the largest player in the pay TV business in the first half. But, financial reports of other domestic groups like Elang Mahkota (Emtek) and Sinarmas suggested significant drop in MSKY’s market share.
Bright Spot in First Half: Beer Industry
Economic slowdown and higher excise didn’t prevent beer producers from reporting significantly bigger net profit in the first half of 2016. Multi Bintang (MLBI), market leader, booked net profit of Rp446 billion in the period, skyrocketed 149% from the same period of 2015. Beer is the second largest contributor for excise to the State Budget.