Indonesia’s logistic performance index (LPI) is slated to improve further with commercial operation of additional 406 KM toll roads this year. As of today, a total of 2,386 KM toll roads is operational, but will double to 5,103 KM by 2024. The pandemic doesn’t stop construction of the projects all over the country. 

Approval from BPOM, Indonesia’s FDA, for clinical trial of Ivermectin in the treatment of Covid-19 patients lifted shares of Indofarma (INAF) from Rp2,070 on June 18 to Rp3,200 on Tuesday (June 29). Hype over the drug sent its price sky high whilst limited data about efficacy. 

Indonesia has been struggling with the surge of Covid-19 infections in the past few weeks. While full economic recovery might be delayed further to next year, the country managed to proceed with major construction projects. Construction of some major dams have recently been completed, while 373 KM of new toll roads will likely enter commercial operation in the second half.

Unlike nickel, which has attracted over US$10 billion of investments in the past seven years or so, Indonesia has only few investors entered the bauxite processing into alumina. The first, a chemical grade alumina (CGA) smelter, was built by state mining company Aneka Tambang (ANTM), whilst failures to bring it to design capacity almost one decade after completion.

Indonesia initially expected Tesla Inc to make the country as its production base for electric vehicle (EV). Tesla, unfortunately, preferred to build its second production base overseas after China in India instead. It is not a secret that Indonesia expected Tesla to at least join the country’s bid to become key global supplier for EV batteries. 

President Joko Widodo inspected construction of Semarang-Demak (26.7 KM) toll road on Friday (June 11). The toll road, built with public private partnership (PPP) scheme, is the first in Indonesia to act as a seawall along the coastline, a buffer against flooding that normally hits the area. PT Pembangunan Perumahan Semarang Demak, a subsidiary of state EPC firm PTPP, is main investor of the toll road.

Improved connectivity in the Greater Jakarta has lifted prospects of new township projects in the south such as Cibubur, Cimanggis (Agung Podomoro Land), Sentul (Ciputra Development), Ciawi (Summarecon), and Lido (MNC Land). Prospects of other property development projects in satellite cities located in Banten and West Java provinces will also improve with significant progress in the second Jakarta Outer Ring Road (JORR-2). 

North Maluku has transformed itself from a poor province to become one of the world’s largest nickel production centers. The province increasingly plays an important role in the electric vehicle and stainless steel ecosystem with commercial operation of new smelters producing nickel sulphates and nickel pig iron (NPI)/ferronickel.

Minister of investment Bahlil Lahadalia confirmed US$1.2 billion battery cell investment by South Korea-Indonesia consortium in Sinarmas Group’s Deltamas City, Bekasi, West Java. It is closer to Hyundai’s project in the same location, which will be the first electric vehicle manufacturing facility in Indonesia. 

Indonesia recorded trade surplus of US$2.19 billion last month, lifting the surplus to US$7.7 billion in the first four months of 2021. Higher volume and average price of commodities and processed metals contributed to strong export growth in the period. Iron and steel continues to report impressive growth, resulting in total export of US$5.3 billion in the first four months of 2021.