PT Hutama Karya, a state-owned EPC firm tasked to develop the trans-Sumatra toll road, booked net loss of Rp671 billion in the first half ended June 30, 2022, fell significantly from loss of Rp1.24 trillion in the corresponding period last year, thanks to improved toll road operations.

Even when G20 Summit has been relocated to Bali Island, we notice fast development of tourism infrastructure in Labuan Bajo and Golo Mori, West Manggarai regency, Flores Island, East Nusa Tenggara province. There are at least 11 global hotel chains building resorts in the tourism destination.

Go East! In the meeting of President Joko ‘Jokowi’ Widodo with Kishida Fumio, Japanese Prime Minister last July, Jokowi asked the Prime Minister to speed up the completion of several strategic projects in Indonesia including an industrial park in West Papua province. After Sulawesi and Maluku, can Papua be the next?

PT Vale Indonesia Tbk (INCO), China’s Zhejiang Huayou Cobalt Co., Ltd, and global automaker Ford Motor Co have just signed a non-binding memorandum of cooperation to create a three-party relationship in Indonesia to process nickel ore mined by Vale Indonesia at Pomalaa Block, Kolaka, Southeast Sulawesi. 

As part of President Joko “Jokowi” Widodo’s working visit in Central Java province, he inspected construction progress of the Batang Integrated Industrial Park (Batang KIT) in Batang Regency, Central Java province last month. Jokowi mentioned that the construction of all the factories has begun after Batang KIT started the development two years ago. 

Three years ago, President Joko ‘Jokowi’ Widodo inaugurated development of Tanjung Kelayang special economic zone (SEZ) for tourism industry in Belitung Island. Minister of tourism and creative economy Sandiaga Uno has visited the SEZ several times since, but progress might be slower because of the Covid-19 pandemic.

Indonesia welcomed 212,332 visits of foreign tourist in May, skyrocketed by 1,382% year-on-year.  The visit increased 91,19% compared to April (111,057 visits). Thanks to the G20 activities, the preparation of E-Prix, the government policies regarding the expansion of Visa on Arrival (VoA) and the opening of an international airport. The government expects to further boost tourist visits with the development of special economic zone (SEZ) in various areas. What’s their status?

We anticipate more foreign investors entering the toll road business in the coming years. Following acquisition of some toll road assets by HKSE-listed Road King Infrastructure Ltd and First Pacific Ltd (through MPIC, the Philippines), other investors are looking into the projects being offered by both Waskita Karya (WSKT) and Hutama Karya (PTHK).

The Indonesia government has already increased the excise tariff for e-cigarette with a minimum increase of 17.5% starting January 1, 2022. The official increase in excise rates was marked by the issuance of Minister of Finance Regulation (PMK) Number 193/PMK.010 of 2021 concerning Excise Tariffs for Tobacco Products in the Form of E – Cigarettes and Other Tobacco Processing Products. The rules were set on December 17, 2021 by the Minister of Finance Sri Mulyani Indrawati and promulgated on December 20, 2021.