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.

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.

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. 

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.

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.

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).

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. 

Physical construction of Phase II of the mass rapid transit (MRT) in Jakarta has been started, but like other major mass transportation projects, we anticipate delays due to difficulties in land acquisition and slow execution of EPC tender. Still, we have every reason to believe that the country’s infrastructure and logistic index will improve significantly within five years time.

Indonesia booked trade surplus of US$3.6 billion in October 2020, jumped by 50.9% from September, thanks to 3.1% growth in export revenues, while import declined by 6.8%. As a result, the country posted US$17.07 billion of trade surplus in the first ten months of 2020 against deficit of US$2.12 billion in the corresponding period last year. 

Milk processor Ultrajaya Milk (ULTJ) suffered 11% year-on-year decline of sales revenues in third quarter 2020, but net profit increased by 25.3% to Rp383 billion. In the first nine months of 2020, sales revenues declined slightly by 2.9% year-on-year, while net profit increased by 15.2% to Rp938 billion.