Electricity Supply Hampers FeNi Haltim Project
State-owned PT Aneka Tambang Tbk (ANTM) plans to finalize a Ferronickel plant construction in Halmahera Timur (FeNi Haltim). The Plant will have the capacity of producing 13.500 TNi per year, and it supposedly is 98 percent complete. The only thing in its way is electricity.
Outliers of 2020
Last year was a difficult year for everybody. Still, there are some outliers. Consumer goods giant Unilever Indonesia, for example, generated net profit of Rp7.16 trillion, down only by 3.1% from 2019, while sales revenues inched up 0.1%. Herbal producer Sido Muncul (SIDO) and ceramic producer Arwana Citramulia even reported substantially stronger performance last year.
Toll road projects update
Some sections of two toll road projects in West Java, the most populous province in the country, are scheduled to enter commercial operation in the third or fourth quarter of the year. They are Section II (Cigombong-Cibadak) of Ciawi-Sukabumi (54 KM) toll road and three sections (31.6 KM) of Cileunyi-Sumedang-Dawuan (Cisumdawu, 61 KM) toll road.
Key Takeaways from External Trade in 2020 & 2021 Outlook (2)
Pretty much as predicted, iron and steel (HS 72) was the best performing sector for Indonesia’s external trade in 2020. While export jumped by 47% to US$10.85 billion, import collapsed 34% to US$6.86 billion, resulting in trade surplus of nearly US$4 billion last year. In December alone, trade surplus in HS 72 reached US$478 million, thanks to higher average price of metals.
Key Takeaways from External Trade in 2020 & 2021 Outlook (1)
Indonesia booked a record trade surplus of US$21.74 billion last year against deficit of US$3.59 billion in 2019. This, however, was attributable to 17.3% drop in import, while export declined by 2.6%. Still, this was not bad at all given downfall of global economy due to the coronavirus pandemic.
Mass transportation projects update
While we’re disappointed with pathetic delay of Jakarta mass-rapid transit (MRT)’s Phase II connecting Bundaran HI and Ancol, we start 2021 with some positive news. First is the appointment of EPC contractor for two packages, and the second about the start of a study to expand the MRT using public private partnership (PPP) for Fatmawati-Taman Mini (South-East) route.
EVolution in Indonesia
Happy New Year! The new year is expected to be an exciting one in the context of electric vehicle (EV) ecosystem and market in Indonesia. As one of the largest automotive market in the region, the country has by far attracted more full battery (BEV) offerings last year. Hyundai, one of the world’s leaders in BEV, launched two models in Indonesian market late last year: Kona EV and Ioniq.
Major investments in 2021: Walk the talk!
Minister of industry Agus Kartasasmita claims of securing US$2 billion investment commitment from Toyota Motor Corp to build manufacturing facilities for hybrid, plug-in, and full battery electric vehicles (BEV) in Indonesia in three years time. Hyundai, meanwhile, is expected to implement its US$1.55 billion investment in car manufacturing, including EVs, as well.
Manufacturing industry 2021 outlook (7): Pharmaceutical
The pandemic is a wake up call for the country’s pharmaceutical and medical equipment industry. Huge import of drugs and equipments during the pandemic has strengthened the government’s local content policy, which could lead to more investments in the sector next year onwards.
Fast Growing Data Center Investments
The pandemic hurts investments in general, but not for data center to support the fast growing tech economy in the country. Data from industrial estates selling plots of land to global tech giants pointed to interesting development in the data center industry.