Garibaldi ‘Boy’ Thohir, chairman of metallurgical coal PT Adaro Minerals Indonesia Tbk (ADMR), and Jay Chang, CEO of Hyundai Motor Company, signed memorandum of understanding (MoU) related to strategic partnership on aluminium project at the sidelines of Business 20 at the Bali Nusa Dua Convention Center few days ago. This is one of 18 MoUs and agreements signed by Indonesian business groups and global companies during the event.

The Ministry of Investment signed a memorandum of understanding (MoU) with China’s CNGR Advanced Material Co Ltd in order to support the development of the electric vehicle ecosystem in Indonesia. The signing of the cooperation with estimated investment value of US$5 billion was carried out by Secretary of the Ministry of Investment Ikmal Lukman and Chairman of CNGR Advanced Material Co Ltd Deng Weiming and witnessed by Investment Minister Bahlil Lahadalia at the B20 Investment Forum, Nusa Dua, Bali last week.

The Indonesian government is continuing to investigate acute kidney injury among children, which has linked to the presence of certain harmful compounds in syrup medicines. The move comes as the world’s fourth most populous country suffers a spike in cases of acute kidney injury that has killed nearly 200 children since the end of August, prompting an investigation and ban on the sale of some syrup medicines.

The government will soon open tender for the development of two strategic toll roads in the greater Jakarta with combined investment of Rp41.68 trillion or about US$2.7 billion. They are the Semanan-Balaraja (32.39 KM) in the western part of Jakarta and the Cikunir-Karawaci (40.5 KM) connecting east and west of Jakarta. 

The increase in fuel prices, threat of a global warming crisis, the scarcity of fossil energy and recently added the threat of an economic recession, have made the automotive industry aggressively develop electric vehicles. Pioneered, among others, by the Tesla manufacturer, which from the beginning only made electric cars, now almost all automotive brands offer their electric vehicle models as an alternative. The governments in various parts of the world also provide incentives for electric vehicles, including in Indonesia.

Indonesia is targeting to build its first Special Economic Zone (SEZ) for health and tourism in Bali Island as the President Joko “Jokowi” Widodo has officially established the said SEZ with Rp10.2 trillion of investment. 

Kudos to the Jokowi administration! After three decades, the Bekasi-Cawang-Kampung Melayu (Becakayu) toll road, which connects Jakarta and Bekasi in West Java province, has finally completed and will soon fully operational.

The Dutch animal feed producer company De Heus has recently opened its fourth animal feed factory in an area of five hectares in the Pasuruan Industrial Estate Rembang (PIER), East Java province, which is managed by the state-owned company PT Surabaya Industrial Estate Rungkut (SIER).

Oversupply and higher energy costs are still the main challenges faced by cement makers. In the first nine months of 2022, cement makers came up with mixed results. Semen Indonesia (SMGR), market leader, posted 19.5% increase in net profit, while second largest player Indocement INTP) reported a 21.6% fall in net profit. 

Investors were not impressed by financial performance of state steel producer Krakatau Steel (KRAS). Shares of KRAS collapsed 6.91% Tuesday (Nov 1) even when the company reported profit attributable to owners of US$80 million in first nine months (9M) to September of 2022, grew 35.6% year on year (y/y).