Walk the talk: Major investments in the chemical industry
Ineos Aromatics has just completed a US$70 million modernization of its purified therephthalic acid (PTA) plant in Merak, Banten province. Ineos informed stakeholders yesterday that the modernization will boost Merak facility’s PTA production capacity by 15% from 500,000 tons to 575,000 tons per annum, second largest in Indonesia behind Mitsubishi Chemicals.
Higher Sales of United Tractors
United Tractors (UNTR)—a subsidiary of Astra International engaged in construction machinery supply, coal mining contracting, own coal business, power generation, and civil construction—reported a higher sales performance in January 2022, compared to December 2021, for mining, agriculture, and forestry. The construction segment declined.
Surprises from Indorama Synthetics
Shares of Indorama Synthetics (INDR) jumped 13.32% to Rp4,680 on Wednesday (Feb 23) to respond the textile company’s strong financial performance in 2021. Still, at the last quoted price Indorama was worth Rp3.06 trillion only or about half of its equity as at Dec 31, 2021.
Industry Update: Cement
The Indonesia Cement Association (ASI) reported that domestic cement consumption grew 7.6% year on year (y/y) to 5.28 million tons in January 2022, with cement consumption outside Java rising significantly. Otherwise, cement consumption in Java island declined 1% to 2.7 million tons.
Indonesian Renewable Energy Players (1)
Pretty much like technology sector, we’ve seen the entry and expansion of Indonesian conglomerates in renewable energy business. Some coal miners have also entered into various partnerships to anticipate stricter implementation of the government’s carbon neutral policy, including the target to add at least 51% of new power capacities from renewable energy sources by 2030.
More new names in the nickel-EV ecosystem
Nickel has been hovering above US$22,000 per ton for quite sometime now, supported by strong growth of electric vehicle (EV) market. Indonesia, which hosts the world’s largest reserves of nickel, continues to attract new investors.
EV: What a start to the new year
The world started 2022 with strong sales performance of electric vehicles. United Kingdom reported an impressive 130% year-on-year sales growth for battery EVs (BEVs) in January, while hybrids (PHEVs) increased by 48%. Plug-in electric car, accordingly, took 20.4% of the country’s passenger car market, of which 12.5% for BEVs.
Toll road projects update
President Joko ‘Jokowi’ Widodo has on Friday (Feb 4) inaugurated operation of Binjai-Stabat section (11.8 KM) of the Binjai-Langsa (131 KM) toll road in North Sumatra, which is part of the ambitious trans-Sumatra toll road program. The toll road connects North Sumatra and Aceh provinces, unlocking economic potentials in the surrounding areas.
Hongshi Cement’s Indonesian Expansion: Kobexindo & Beyond
Debate over development of Nusantara, the new capital city in Penajam Paser Utara, East Kalimantan province, escalated in recent days. Some questioned the government’s inconsistency in granting permit to PT Kobexindo Cement and its Chinese partner Hongshi Holding to build cement factory in the nearby Kutai Timur Regency.
More players in the EV Ecosystem
Late last year Djarum Group’s electronic division Polytron launched EVO electric motorcycle. Djarum, owner of Bank Central Asia (BBCA), the largest company on Indonesia Stock Exchange (IDX) by market capitalization, has also quietly invested in the upper stream of the EV ecosystem.