Anta Mediakom Heats Up VSAT Business Competition
Global Invacom Group Limited, a satellite communications equipment provider listed on the Singapore Exchange and the U.K. AIM Market, has partnered with PT ANTA Mediakom to deploy up to 14,000 Very Small Aperture Terminals (VSAT) to an Indonesian customer to facilitate communications and online financial services.
Key Takeaways from May 2016 Trade Statistics
Indonesia booked trade surplus of US$376 million in May, down 43.3% from the previous month as import grew 3%, while export inched up 0.3%. Expansion of deficit in oil and gas by 51% to US$711 million contributed to the decline in trade surplus, mainly because of higher import volume of oil and gas products ahead of fasting month Ramadhan and Lebaran holidays.
Cement Industry’s Growth
Some cement stocks at the Indonesia Stock Exchange (IDX) are the focus of selling by investors year to date. Indocement (INTP), the second largest cement producer, has fallen 27.7% and Semen Indonesia, the largest cement producer in the country, dropped 22.8%. Holcim Indonesia (SMCB), on the other hand, rose 3% year to date. And Semen Baturaja (SMBR) jumped 82% year to date.
Those Continue to Expand
Unilever Indonesia (UNVR), the largest player in personal and home care market, plans to spend Rp2 trillion of investment (capital expenditures) this year, including Rp600 billion for new headquarter in BSD City. This year’s capex, accordingly, an increase of 40% from last year, reflecting Unilever’s long-term trust in Indonesian economy.
Sorong SEZ & Growing Investments in Papua
The government plans to issue necessary regulations to support the development of the long-delayed special economic zone (SEZ) in Sorong, West Papua. Some companies, including foreign investors, have anticipated the development with expansions in various areas in West Papua and Papua provinces.
Chinese Funds in Indonesian Smelter Projects
PT Well Harvest Winning Alumina Refinery (WHWAR), a joint venture between China Hongqiao and Citra Mineral Investindo (CITA), is currently in the process of getting US$820 million loan from banks and financial institutions for the smelter grade alumina (SGA) in West Kalimantan province. First phase of the smelter has started its soft opening late last month with estimated output of 504,110 tons in the second half of 2016.
Positive Debut of Cikarang Listrindo
PT Cikarang Listrindo Tbk (POWR), an independent power producer (IPP), was making its positive trading debut this morning as its stock gained 4.3% to Rp1,565. Investors actively collected this stock, becoming the third mostly traded stock behind Bumi Resources (BUMI) and MNC Investama (BHIT).
Toll Road Projects Update
State-owned company Hutama Karya, assigned by central government to build toll roads in Sumatra, reported faster construction of Medan-Binjai toll road. By June 11, 2015, construction progress of Section III of the toll road already reached 48.36%, increased significantly from 46% in the previous week. Section II of the toll road also reached construction progress of 28.8% by June 11, improved substantially from 24.55% in the previous week.
Persistent Oil Misfortunes
Nymex’s crude oil dropped 4.02% to US$48.53 per barrel in Asian trading this morning, after recently challenged US$50.00. Many investors and those in oil feel that perhaps the worst has been seen in the oil patch. But there are of course no assurances of that. There are still likely to be bankruptcies and layoffs in the near-term. Despite a nearly 100% rally in the price of crude oil, from the $26 per barrel bottom, energy sector bankruptcies continue unabated.
Market & Economic Slowdown
The rupiah weakened to Rp13,309 against the US dollar on Friday last week (June 10). Nymex’s crude oil dropped 3.68% to US$48.70 per barrel in Asian trading this morning while gold rose 0.57% to US$1,279.90 per ounce. Asian shares and sterling skidded in early Asian trade on Monday and the perceived safe-haven yen rose, as investors fretted ahead of this week’s central bank meetings as well as Britain’s June 23 referendum on whether to remain in the European Union, Reuters reported.