PT Gudang Garam Tbk (GGRM), controlled by Wonowidjojo family, maintains its position as the largest cigarette player with sales revenues of Rp81.72 trillion in the first nine months of 2019, bigger than HM Sampoerna (HMSP), controlled by Philip Morris International, which generated sales revenue of Rp77.5 trillion in the same period.

Indonesia, the largest digital economy in Southeast Asia, continues to attract investments. Following Northstar Group’s Open Space Ventures (previously NSI Ventures), which has committed capital of $225 million in 27 portfolio companies, more private equity firms are raising funds in the sector.

LinkNet (LINK) posted net profit of Rp773 billion in the first nine months of 2019, down 5.3% from the corresponding period last year on lower profit margins. LinkNet, controlled by Lippo Group, actually returned to positive territory with sales revenue growth of 1.2%...

Minister of public works and housing Basuki Hadimuljono, state-owned enterprises minister Erick Thohir, tourism and creative economy minister Wishnutama Kusubandio, investment minister Bahlil Lahadalia were seen at Basuki’s office Saturday (Oct 26) to discuss about future development of five emerging destinations: Toba Lake, Borobudur, Mandalika, Labuan Bajo, and Likupang. This is a promising start.

Market value of cigarette giant HM Sampoerna (HMSP) has dropped nearly 47% from its recent peak, among others, due to government’s policy in raising significantly tobacco excise effective January 1st, 2020. Some continue to remind the government about potential mass layoffs from the policy, but looks like it will not be changed anytime soon.

Indonesia’s total export declined 8% to US$124.17 billion in the first nine months of 2019, but export volume actually increased by 7.57%, mainly because of 9.9% growth in non oil and gas products. One of the fast growing industries is steel, especially because of huge investments by Tsingshan Group, the world’s largest stainless steel producer, and its partners in Morowali Industrial Park, Central Sulawesi in the past five years.

State-owned toll road developer and operator Jasa Marga (JSMR) has on Monday (Oct 14) signed heads of agreement with PT China Communications Construction Indonesia (CCCI) for the so-called direct equity financing worth Rp23.3 trillion. This agreement, facilitated by the government’s PINA (non-state budget infrastructure funding), ensures continuation of the toll road program in the country.

Given its strategic assets across the archipelago, state-owned ship operator PT Pelayaran Nasional Indonesia (Pelni) is one of underutilized SOEs. Pretty much like the state postal services PT Pos Indonesia, PELNI’s land and buildings are in strategic locations of major cities like Jakarta, Surabaya, Semarang, Denpasar, Makassar etc.

One of the challenges for President Joko ‘Jokowi’ Widodo’s second term is addressing the trade imbalances with China. In the first nine months of 2019, trade deficit (non oil and gas sector) with China inched up 0.3% to nearly US$14 billion. The overall trade deficit might be smaller because Indonesia exporting substantial volume of natural gas to China, but the government shall seriously address the issue.

Indonesia suffered trade deficit of US$160.5 million in September 2019 against surplus of US$112 million in August. The country, accordingly, booked trade deficit of US$1.95 billion in the first nine months of 2019, fell sharply by 49% from the corresponding period last year. This was mainly attributable to 32% fall of deficit in oil and gas sector. While export revenues from non oil and gas products declined by 6.2%, export volume actually increased significantly by nearly 10% in the first nine months of 2019.