Major infrastructure projects to watch (2)
It’s getting serious. The central government and Bali provincial administration have agreed for the development of toll road connecting Gilimanuk (the main entrance through sea from Java Island) and Mengwi (95 KM) in Bali Island. The Rp14.5 trillion project has just entered feasibility study.
Minerals and Coal Mining Director General Ridwan Djamaludin
The President appointed a new Director General (DG) of Minerals and Coal Mining (Minerba) of the Ministry of Energy and Mineral Resources (ESDM) on Aug. 5. Ridwan Djamaludin replaces Bambang Gatot Aryono. Ridwan was Deputy III for Infrastructure Coordination at the Coordinating Ministry of Marine Affairs and Investment (Kemenkomarves)’s BPPT.
Pertamina Seeks Expansion Despite Pandemic
State-owned PT Pertamina is reportedly planning to acquire a few oil fields in the Middle East and Africa in a move to address its declining domestic production. Domestic oil lifting is currently at 750,000 barrels of oil per day (BOPD), whereas domestic consumption reaches 1.5 million BOPD.
First half results: Feed & Poultry
Shares of Charoen Pokphand Indonesia (CPIN), the largest integrated poultry player, retreated 0.8% to Rp6,200 on Wednesday (Aug 5), but CPIN has gained significantly by 63.2% from its recent bottom. Unlike peers, Charoen reported only 4.3% decline in net profit to Rp1.65 trillion in the first half of 2020 despite 6.7% decline in sales revenues.
Downstream Projects Hampered by the Coronavirus Pandemic
The Indonesian Government is expected to continue its push for the development of smelters in Indonesia. In-country refining is a new paradigm for Indonesia’s traditionally extractive approach. But moving towards value-added production is a national mandate as noted in Law 3/2020 on Minerals and Coal, which revised the 2009 version of the said Law, Ministry of Energy and Mineral Resources (ESDM) Head of Communications Agung Pribadi said (Aug. 2).
Strong first half for Indofood, Ultrajaya, and Semen Indonesia
Shares of Indofood CBP Sukses Makmur (ICBP), market leader for instant noodles, closed at Rp9,200 last Thursday to make a market capitalization of Rp107.3 trillion. While the stock has gained nearly 19% from its recent bottom (March), it is valued way below peak despite strong performance in the first half.
First Half Results: Pharmaceuticals, Consumers
Pretty much as predicted, companies in the pharmaceuticals and consumer goods performed fairly better than those in other sectors during the pandemic. This can be seen in the financial results of Kalbe Farma, Tempo Scan Pacific, Unilever Indonesia, Mayora Indah, and Siantar Top.
First Half Results: Plantation, Cigarette, Chemicals
Not bad! Without significant disruption in production operations, some companies in the plantation, cigarette, and chemicals reported stronger sales revenues in the first half despite nationwide restrictions of people’s movements related to the Covid-19 outbreak. Astra Agro Lestari (AALI), Gudang Garam (GGRM), and Indo Acidatama (SRSN) are among those reported higher sales in the period.
Major infrastructure projects to watch (1)
The government has demanded acceleration of tender for the development of Ir H Juanda water infrastructure system to supply base water for the greater Jakarta area with estimated investment of Rp5.97 trillion. Maynilad Water Services Inc consortium has the right-to-match for this project.
Infrastructure projects update
Various agencies reported solid progress in physical construction of major infrastructure projects, especially toll roads in Sumatra, Sulawesi, Kalimantan, and Java plus some water infrastructure projects (dam and water pipeline) during the Covid-19 pandemic. The government has also accelerated cash-for-work program in the village infrastructure sector.