Revisiting Kendal Industrial Park
President Joko ‘Jokowi’ Widodo and Singapore Prime Minister Lee Hsien Loong are scheduled to inaugurate Kendal Industrial Park in Kendal, Central Java province on August 25, 2016. Construction of Pemalang-Batang and Batang-Semarang toll road plus 2×1000 MW in Batang Regency have lifted prospect of the industrial park developed by SembCorp and Jababeka Group.
CVC-Nirvana Asia Deal: Next in Indonesia?
Private-equity firm CVC Capital Partners has launched a buyout offer for Nirvana Asia Ltd, Asia’s largest funeral-services provider by revenue, in a deal worth almost US$1 billion. The deal is interesting to watch, given Nirvana Asia’s operations in Malaysia, Singapore, and Indonesia.
What if Tax Amnesty Fails…
President Joko ‘Jokowi’ Widodo continued his nationwide roadshow to sell the tax amnesty program. When he talked before 3500 participants, presumably taxpayers, in Bandung, West Java yesterday, tax office had collected Rp231 billion from Rp10.9 trillion of declared and repatriated assets.
First Half Capex & Second Half Growth
We have completed collecting data about the real capital expenditures (cash-basis) from 103 companies listed in the stock and bond market. Unlike the first batch of 64 companies, the second batch led to overall 0.7% growth to Rp52.9 trillion of cash used by 103 companies in investing activities, mostly to acquire fixed assets.
Indosat: Strong First Half, But…
Indosat (ISAT), the second largest cellular operator, reported slower sales revenue growth in the second quarter, but 10.5% growth in the first half of 2016 was enough to post 70% jump in profit before income tax.
Infrastructure Journal
The proposed budget cut will unlikely affect major infrastructure projects in the country. Tax amnesty program is expected to give a boost to the program as well. Accordingly, infrastructure development is still the most interesting news from Indonesia to global investors. In this edition, we highlight progress in mass-rapid transit (MRT), light-rail transit (LRT), airport trains, airports, and ports.
Toll Road Projects Update
Construction of three toll roads—-Pandaan-Malang (37.6 KM), Balikpapan-Samarinda (99 KM), and Manado-Bitung (39 KM)—-will gear up later this year. M Toha Fauzi, operational director of PT Pembangunan Perumahan Tbk (PTPP), a state-owned EPC firm, said land acquisition in the toll road projects has increased significantly in the past few weeks.
Fresh Hopes for Rajawali’s Kulon Progo Iron Project
In contrast to Salim Group’s iron sand smelting project in Taliabu Island, Maluku province, which is getting closer to commercial operation, construction of similar project in Kulon Progo regency, Yogyakarta province planned by ASX-listed Indo Mines Ltd has been delayed for almost five years now. The Company was granted contract of work eight years ago by SBY-Kalla administration with a plan to build an integrated iron-steel plant with US$1 billion of investment.
Salim Group’s Romang Island Metal Projects
Salim Group is among the most aggressive investors in mining sector in the past five years. Other than acquisition of coal assets in Indonesia and Australia, the group has also expanded its portfolios in base metals in both countries. Salim, one of the largest business groups in Indonesia, has significant operations in Maluku province.
Matahari Dept Stores vs Ramayana Lestari
Matahari Department Stores (LPPF), which operates 146 stores, currently has market capitalization of Rp60.8 trillion. Ramayana Lestari (RALS), which operates 115 stores, meanwhile, has market value of Rp8.4 trillion only. LPPF generated sales revenue of Rp5.18 trillion in the first half, while Ramayana reported 2.77 trillion. Why LPPF is valued six times bigger than Ramayana? What makes the big gap of valuation?