Continuation of the 35,000 MW Grand Plan
Nearing the end of 2019, Minister of State Owned Enterprises (BUMN) Erick Thohir made Zulkifli Zaini the CEO of PT PLN. The former CEO of Bank Mandiri was entrusted with huge responsibilities, one of which is the continuation of the 35,000 MW electrification project. The herculean undertaking began in 2014, but to this day only 14 percent (5,071 MW) of the goal has been reached according to the Committee for the Acceleration of Priority Infrastructure Development (KPPIP).
More investments cut iron & steel deficit
Growing domestic steel industry contributed to 28% growth in export value of iron and steel (HS 72) to US$6.77 billion in the first 11 months of 2019. Import, meanwhile, increased only by 5% to US$9.56 billion. That means, deficit in HS 72 dropped to US$2.79 billion from US$3.84 billion. Deficit in iron and steel will decline further in the coming years with commercial operation of metal processing facilities.
Hospitals Industry Continues to attract investment
With the exception of strange downfall of service revenues at PT Sarana Meditama Metropolitan (SAME) Tbk, operator of Omni Hospitals, four operators listed on Indonesia Stock Exchange (IDX) reported strong growth in the first nine months of 2019. Mayapada Hospitals led with 34.1% growth, followed by Siloam (18.6%), Hermina (17.5%), and Mitra Keluarga (17.2%).
Saudi Aramco is Back
Pertamina is moving forward with its Refinery Development Master Plan (RDMP) fan Refinery. Joko “Jokowi” Widodo’s government could not finalize the development of any RDMP refinery in its first term, despite having gone through several change of leadership in Pertamina. Ever since the appoint of President Commissioner Basuki Tjahaja Purnama (Ahok), the President has a renewed outlook.
Jokowi, Ahok, and Tuban
Presiden Joko Widodo (Jokowi) reunited with his former teammate in Jakarta, Basuki Tjahaja Purnama (Ahok). That’s the headline in many mainstream outlets. Both men met while visiting the refinery of PT Trans Pacific Petrochemical Indotama (TPPI), which is now under Pertamina and Rosneft (Russia). Expectations have been raised that the duo would again work together for something bold.
The IDD Project Delayed
The second phase of the Indonesia Deepwater Development (IDD), which will cover the Gendalo and Gehem fields in the Makassar Strait, is expected to take a very long time. The IDD project is under PT Chevron Pacific Indonesia. It began rolling in the Presidency of Susilo Bambang Yudhoyono (SBY), but it continued to stall in President Joko “Jokowi” Widodo’s first term. Chevron and the Government has yet to agree on its Plan Of Development (POD).
Reform in Pertamina
President Joko “Jokowi” Widodo and Minister of State Owned-Enterprises Erick Thohir must make use of Basuki Tjahaja Purnama (Ahok) to the best of his potential. As President Commissioner of Pertamina, Ahok’s role is primarily supervisory. That seems like a waste of talent. Ahok would be better utilized with a bigger role, like reforming Pertamina’s organizational structure.
Consolidation of SOEs Non-Core Assets (1)
Erick Thohir, minister of state-owned enterprises, was surprised to know how many non-core assets of state companies (hotels, hospitals, bottled water, etc). We’re not, and, apparently, his predecessor Rini Soemarno had actually started the consolidation. Rini started with consolidation of 77 hospitals owned by various SOEs to create the so-called PT Indonesia Healthcare Corporation (IHC) exactly three years ago.
Bukalapak continues to test Emtek Group
After months of speculations, Achmad Zaky, founder of bukalapak.com has recently tendered his resignation as CEO. Rachmat Kaimuddin has been appointed new CEO of the e-commerce platform, which has been struggling to stay competitive in the market increasingly dominated by Tokopedia.
Waste-to-Energy Project: Sarbagita
Environmental Office of Bali Provincial Administration has this morning officially invited investors to compete in the development of waste-to-energy project called Sarbagita in Bali Island. Participants are expected to pick up the prequalification documents for the Rp2.3 trillion project by December 20, 2019.