President Joko ‘Jokowi’ Widodo looks determined to revitalize the country’s manufacturing industry. Despite massive investments in public infrastructure (toll roads, ports), the country is still considered not competitive enough to attract new investments, especially because of complicated regulatory framework and the industrial relation issues. Next year, however, Indonesia’s manufacturing industry will get a lift in some sectors.

Some economists jumped into conclusion about domestic manufacturing industry problems behind deeper correction of import (down 9.9%) than export (-7.8%) in the first ten months of 2019. The truth is that nearly 30% fall in import of oil and gas, due to some policies introduced this year, contributed to deeper correction of import.

Indonesia posted trade surplus of US$161.3 million last month against deficit of US$163.9 million in September, thanks to stronger export growth (+5.9%), while import grew at slower pace (+3.6%). As a result, the country’s trade deficit fell sharply by 67.9% to US$1.79 billion in the first ten months of 2019.

Some foreign investors are reportedly preparing to participate in tender for the development of Bawen-Yogyakarta toll road, which needs Rp12 trillion of investment. The toll road, which will be connected to the trans-Java and Solo-Yogyakarta, will significantly boost economic, including tourism, activities in Central Java and Yogyakarta, home to around 40 million population.

Textile and garment producer Pan Brothers (PBRX) booked net profit of US$15.54 million in Jan-Sep 2019, jumped by 39% from the corresponding period last year, thanks to improved margins. Sales revenues actually increased by 10% only to US$491.9 million, but the company managed to cut its operating expenses.

We have long talked about ‘fishy relationship’ between doctors and pharmaceutical companies, which might have contributed to high medical costs in the country. This week, Tempo magazine published its so-called ‘investigation’ into such practice by Kalbe Farma (KLBF), the largest pharmaceutical company listed on Indonesia Stock Exchange (IDX) with market capitalization of slightly above US$5 billion.

With the exception of Jembo Cable (JECC), four other cable manufacturers listed on Indonesia Stock Exchange (IDX) reported stable growth in the first nine months of 2019. Jembo Cable suffered 9.7% decline, while Kabelindo Murni (KBLM) posted 15.4% growth in sales revenues. Sucaco, the largest player, enjoyed a strong sales revenue growth of 9.4% in Jan-Sep 2019.

PT Dexin Steel Indonesia, co-owned by Tsingshan Steel (the world’s largest stainless steel producer) and Delong Holdings, might have missed commercial production start of the 3.5 million tons per annum carbon steel factory in Indonesia Morowali Industrial Park (IMIP)—-estimated investment of US$1 billion—-scheduled last quarter. IMIP in Morowali, Central Sulawesi, however, continues to attract more investments.

Dunlop Aircraft Tyres Ltd, global maker and retreader of tires for aircrafts, has decided to partner with PT Rubberman Indonesia in the development of first plant in Karawang, West Java, Indonesia. Dunlop starts its investment with retreading plant, which may cost around Rp1 trillion. Commercial operation is scheduled in 2021. The company will later on build tire production facilities.