Tax Amnesty in Action (5)
As of this morning, Tax Office has received 2992 assets declaration letter and collecting Rp388 billion of ransom under the tax amnesty program. It is only 0.2% from the government’s target of Rp165 trillion. The growth looks promising in the past two weeks. Last month, the first month of the program, Tax Office recived only 244 letters with total assets declared of Rp3.77 trillion. In the past two weeks, Tax Office received 2,648 letters with total assets declared of Rp15.18 trillion.
People Behind Assa Land
Classified as new property player, PT Assa Land has already gained public attention, especially with its activities in Surabaya, the second largest city in Indonesia. The name came to surface four years ago when it acquired Adistana Apartment project in Ngagel, Surabaya, whose construction was stopped for almost a decade.
KMI Wire & Cable: Further Rally?
Electric cable manufacturer PT KMI Wire and Cable (KBLI) Tbk is among the best performing stocks year-to-date with 144% gain. Trading volume in this stock has also increased significantly in the past few trading days as investors were upbeat with its strong performance in the first half. Further rally?
Go-Jek after Grab-Didi+SoftBank Deal
Bloomberg reported recently that China’s largest ride-sharing service Didi Chuxing and SoftBank were set to invest in around that could top US$600 million in Grab, a growing competitor for Go-Jek in Indonesia. This was shortly after Didi Chuxing and Uber China agreed to merge their operations. Didi and Uber, however, agreed to continue competing in Southeast Asia market, including Indonesia.
Toll Road Projects Update
The government has disbursed Rp2.1 trillion of bridge financing for land acquisition of some toll road projects, jumped 40% from Rp1.5 trillion in late July. Land acquisition for toll road projects is set to move faster with the growing amount of bridge financing from concession holders to Rp22.6 trillion. The government has by far secured Rp16 trillion from State Budget 2016 (revised) to repay the concession holders, while the balance is expected from the 2017 State Budget.
Freeport’s Decision
PT Freeport Indonesia’s plan to build a smelter in Gresik, East Java is facing land procurement issues. Freeport had wanted to build the smelter on PT Petro Kimia Gresik’s plot, but the Company reportedly changed its mind. Freeport is reportedly considering to build their smelter on the plot of land belonging to PT AKR Corporindo (AKR). And yet in January 2015, Freeport claimed to have signed an Memorandum of Understanding with PT Petrokimia Gresik to rent an 80-hectare plot valued at US$ 20 juta.
Property Player to Watch: Gunas Land
Gunas Land, as described in its website, is an emerging property player with projects in Indonesia and China. It is also member of a consortium engaged by Jakarta city administration to revitalize the Old Batavia. Who’s behind the group?
Moratorium for Cement Mill Projects
We talked to one cabinet member two weeks ago. That time, he informed us about the visit from executives of cement companies, during which they appealed for moratorium of new cement mill to tackle the growing oversupply. Looks like the proposal might be partly accommodated by the new cabinet.
Fisheries in First Half: Where’s The Money?
After sinking thousands of vessels for their alleged involvement in illegal fishing, President Joko ‘Jokowi’ Widodo ordered his cabinet to speed up investments in fisheries industry. We have to admit that investments in the sector yet to pick up. Financial statement of companies listed on Indonesia Stock Exchange (IDX) suggested slow pace of investment and sales revenues in the sector.
IPO to Watch: Waskita Beton
PT Waskita Beton Tbk has kicked off initial public offering of 10.54 billion shares or about 40% of the enlarged paid-up share capital. Will it be successful like Wika Beton (WTON), which gained almost 100% from IPO price, or probably better?