Batam Investments Update
Many countries are looking at Batam, Riau Islands province as an investment destination due to its strategic geographical location. Batam Free Zone Authority (BP Batam) recorded that 83.6% of foreign investment in the Riau Islands in the H1 of 2023 entered Batam with US$348.09 million or Rp5.15 trillion of the province’s total investment of US$416.4 million.
The Silica Race (2)
Global efforts to combat climate change, combined with geopolitical tension leading to high price of conventional fuels, has led to annual double digit growth of photovoltaic (PV) installations in the past few years. Few weeks ago, Vantage Market Research estimated the global solar PV glass market alone to have US$37.6 billion value by 2030, surged from US$6.5 billion last year.
The Silica Race
The government of Indonesia is now trying hard to convince Xinyi Group, the world’s largest glass manufacturer for solar panel and semiconductor, that it can secure the necessary land for over US$10 billion integrated silica sand project in Rempang Island, off south...
Indonesia-China Relationship (2): From Deficit to Surplus
Indonesia recorded trade surplus of US$187 million in August for non oil and gas trade with China. If combined with oil and gas, the surplus should be substantially bigger because China is among main export destination of Indonesian LNG from Tangguh, West Papua province.
More investments in heavy equipment industry
Indonesian heavy equipment market has long been dominated by America’s Caterpillar and Japan’s Komatsu and Kobelco. Growing investments and involvement of China, however, has led to faster growth of Chinese brands, particularly Sany.
More investments in Indonesia’s EV Ecosystem
Indonesia is still waiting final investment decision from giants like Tesla and BASF-Eramet in the electric vehicle (EV) ecosystem. BASF-Eramet is scheduled to make decision in the coming weeks for its US$2.6 billion nickel-cobalt salts smelter in Halmahera, North Maluku province. Forget about Tesla for the time being, because it may not come soon.
Walk the Talk: Lotte Chemical’s US$4 Billion Project (2)
President Joko ‘Jokowi’ Widodo has on Tuesday (Sep 12) inspected construction progress of Lotte Chemical’s nearly US$4 billion petrochemical complex project in Cilegon, Banten province. Planned since 2012 during SBY administration, we finally see the light under Jokowi.
KT&G Heats Up Competition in Cigarette Industry
Nearly 12 years after acquiring local cigarette producer, South Korea’s KT&G has recently secured support from Indonesian government to build new production facilities in East Java province.
Electric Vehicle: Point of No Return
Market share of new energy vehicle (NEV), dominated by battery electric vehicle (BEV), in China, the world’s second largest automotive market, reached 36.9% last month. Germany, the world’s third largest auto market, saw market share for electric vehicle at 37% last month, jumped from 28.5% in the same month last year.
Improved connectivity outlook
We have every reason to be optimistic about the country’s connectivity, especially if the next president continues infrastructure projects started massively by President Joko ‘Jokowi’ Widodo. Extension of the light-rail transit (LRT) and mass-rapid transit (MRT) in Greater Jakarta, expansion of high-speed train (HST) from Bandung to Surabaya, and completion of trans-Sumatra toll road program should be done by Jokowi’s successor.