Manufacturing Journal
Accelerated development of infrastructure should be followed with increasing activities in manufacturing sector. As such, going forward, we will dedicate more of our attentions to investments in the processing industry. As to whether manufacturing will be the next growth engine after downfall of commodities, time will tell. But, growing investment in the sector would be an important social safety net to absorb those kicked out from resources industry.
VIVA’s Growing Tax Liabilities
Visi Media Asia (VIVA), parent company of TV stations TVOne and ANTV, has just released its first quarter 2016 results. The Company booked net profit of Rp85.7 billion against loss of Rp84 billion in the corresponding period of 2015. But the Company, controlled by Bakrie Group, reported growing short-term tax liabilities to Rp565 billion by March 31, 2016.
Further Consolidation of Telcos: Scenarios
With the exception of Telkomsel, four other telecommunication operators have been struggling to make money in Indonesia. Billions of USD have been invested each by Ooredoo, Axiata, Hutchison, and Sinarmas Group in the industry, but they are nowhere near Telkomsel in almost every aspect. We understand that Widjaja Family, The Arabs, and Li Ka-Shing have deep pockets, but for how long and how much more they would spend only to survive the competition?
Toll Road Projects Update
The tax amnesty program has boosted confidence of state-owned company Hutama Karya, assigned by President Jokowi to build most sections of the trans-Sumatra toll road project, to issue bonds worth Rp6.5 trillion. What is the status of land acquisition and construction of the project? How about the trans-Java toll road program?
Allegation of Cartel Practices on the Distribution of Automatic Transmission Scooters
The Business Competition Supervisory Commission (KPPU) held their inaugural session to examine the allegation of cartel practice in the motorcycle business on July 19, 2016. The reported parties in the trial are PT Yamaha Indonesia Motor Manufacturing (YIMM) and PT Astra Honda Motor (AHM). The allegation of cartel practices itself has been circulating since 2013, but the Commission only started conducting their investigations in 2015.
Automotive Market Review: First Half
Strong car sales in June lifted domestic market by 1.2% to 531,929 units in the first half of 2016. Motorcycle sales, howver, declined 6.7% to 2.96 million units, despite strong growth in June. Who are winners and losers in the period? What about the second half?
Cement Industry: Serious Threat from Anhui Conch
Dominant market players like Semen Indonesia (SMGR), Indocement Tunggal Prakarsa (INTP), and Holcim Indonesia (SMCB), have to seriously watch aggressive expansion of Anhui Conch Cement Group from China in Indonesia. After completing second phase of its project in Tanjung, South Kalimantan province, Anhui Conch is slated to start commercial operation of cement plant in West Papua province.
Toll Road Projects Update: Trans-Sumatra
PT Hutama Karya, the state-owned company tasked to develop trans-Sumatra toll roads, will soon use Rp1.8 trillion of bridge financing from PT Sarana Multi Infrastruktur to finance acquisition of land for the projects. President Joko ‘Jokowi’ Widodo, meanwhile, is scheduled to kick off construction of Pekanbaru-Dumai toll road as part of the trans-Sumatra toll road program.
Infrastructure Journal
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, gas pipeline, and the ambitious 35,000 MW program.
IPO to Watch: Aneka Gas Industri
Industrial gases producer PT Aneka Gas Industri Tbk is one of companies launching initial public offering (IPO) this year. The Company, member of Samator Group, has appointed PT Mandiri Sekuritas, PT RHB OSK Ventures Indonesia, and PT DBS Vickers Securities Indonesia as underwriters.