Bridging the nation

Other than toll roads, the administration of president Joko ‘Jokowi’ Widodo has built major bridges and flyover all over the country in the past few years. Musi VI Bridge in Palembang, South Sumatra province is set to open this week, one year after the Musi IV Bridge was inaugurated.

2021 Infrastructure Outlook

Despite the pandemic, the government has completed construction of three dams this year to make a total of 18 in the period of 2015-2020. We anticipate construction completion of eight other dams next year, including two in West Java designed to reduce flooding in the greater Jakarta area.

Manufacturing Industry 2021 Outlook: Metal processing (2)

There are at least three smelter grade alumina (SGA) projects in the construction phase in Indonesia during the pandemic. Two of them will enter commercial production next year to lift the country’s profile in the world’s aluminium industry. Aluminium, like other metals, has gained significantly by 44% from its bottom this year.

Manufacturing Industry 2021 Outlook (2): Metal Processing

After years of massive investments in nickel smelter using rotary kiln electric furnace (RKEF) technology to produce nickel pig iron (NPI), Indonesia will see more smelters using high pressure acid leaching (HPAL) technology producing higher value nickel for electric vehicle batteries in the coming years. Some of them will start commercial operation next year.

Manufacturing Industry 2021 Outlook (1): Chemicals

Global and domestic companies announced only few expansion projects in Indonesia this year due the pandemic. Projects started in 2018 and 2019, however, proceeded as plan with limited disruption. Accordingly, some of them will contribute to the growth of the whole manufacturing industry next year. 

Infrastructure projects update

PT Kereta Cepat Indonesia China (KCIC), which builds the Jakarta-Bandung high speed train (HST), has just completed construction of the longest span tunnel (1,885 m). Four other tunnels from the total 13 to be built have been completed earlier, while eight others are in the construction phase.

Floods control infrastructure projects update

Physical construction of two dry dams in the upstream of Ciliwung and Cisadaea rivers in West Java province progressed well to become substantial flood control infrastructures for the capital city of Jakarta. Sukamahi Dam in Bogor Regency, which had been planned since the 90s, for example, has been 60% complete by late last month after three years of construction.

Infrastructure projects update

Physical construction of the Balikpapan Bay Bridge or Pulau Balang Bridge, which connects Balikpapan (the largest city in East Kalimantan) and Penajam Paser Utara Regency, has been fully completed. Commercial operation of the second longest bridge in Indonesia will cut short travel time between the two cities by around two hours (saving 104 KM of drive around the Balikpapan Bay).

The Speed of EV Disruption

EU leads the way! Germany, the largest automobile market in EU, recorded market share of 17.5% for electric vehicles in October, skyrocketed from 4.1% only in the same month last year. French, meanwhile, posted 11.8% market share in October, surged from 3.4% only in the same month last year. 

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