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.
A more aggressive South Korea
China might have dominated new major investments in Indonesia, which are mostly focused in metal processing (nickel, copper, and silica sands), but South Korea has stepped up presence through some big initiatives as well. Other than Lotte Chemical’s US$5 billion petrochemical project in Banten, LG Energy Solutions and Hyundai have laid foundations for the country’s ambition to become global hub for electric vehicle (EV) ecosystem.
TikTok Shop & Domestic Politics
Minister of SMEs and cooperatives Teten Masduki, a confidante of President Joko ‘Jokowi’ Widodo, recently sparked national debate related to his remarks about the need to ban TikTok running social media and e-commerce simultaneously.