After spending huge resources in the development of infrastructure, the next administration is believed to pay more attention in the development of processing industries. Other than mineral processing, we expect more investment stories from agricultural processing (agroindustry) going forward. Some major business groups have initiated investments in cocoa processing and sugar milling. 

Nickel processing into nickel pig iron (NPI), ferronickel (FeNi), nickel-to-stainless steel, and intermediates for electric vehicle battery dominates investments in mineral processing, but there are interesting stories in the smelting of other minerals, including gold, zinc, lead, and manganese.

After four years of development, President Joko ‘Jokowi’ Widodo has on Monday (Apr 8) inaugurated new terminal at Tjilik Riwut airport in Palangka Raya, the capital city of Central Kalimantan province. Built with Rp700 billion of investment, the airport can now handle 2,200 passengers per day, way above the previous terminal (600 pax). 

PT Central Omega Resources (DKFT) Tbk, nickel miner and processor, posted net loss of Rp53.3 billion last year, expanded fromRp33.6 billion in 2017. The Company, however, generated sales revenues of Rp518.6 billion, skyrocketed from Rp56 billion in 2017, suggesting improvement in its nickel operations.

Cita Mineral Investama (CITA), member of Harita Group, is among the best performing companies last year. The Company, which mines bauxite and produce alumina, booked net profit of Rp661.3 billion, skyrocketed from Rp47.7 billion only in 2017, among others due to huge profit from its 30% interest in the smelter grade alumina (SGA) project. 

Though automation in assembly line is not a new concept, smarter and more capable machines are being developed and deployed to increase productivity and cut costs. The doomsday scenario is that artificial intelligence will leave many employed, but at the moment that sounds more like a script for a movie rather than a realistic trajectory. The more interesting discussions concern the extent of the transformation that comes as a result of increased automation. One might be inclined to think that that’s a remote concern for Indonesia, but is it?

The news outlets are focused on the upcoming general election. It’s only natural since we’re only two weeks away from d-day. But let’s take a short break from all of that. Let’s talk about something promising, a business opportunity that might come anyway no matter what happens on April 17. Let’s talk about gaming in Indonesia.

Surya Esa Perkasa (ESSA), a company co-owned by Garibaldi Boy Thohir and TP Rachmat, is among the best performing companies last year. ESSA, which produces liquefied petroleum gas (LPG) and ammonia, posted net profit of US$41.4 million, skyrocketed from US$2.6 million in 2017, mostly attributable to strong performance of its ammonia business.

Eastern provinces continue to surprise us. Major investments have been carried out in new industrial areas of Morowali (Central Sulawesi), Konawe (Southeast Sulawesi), and Halmahera (North Maluku). More to come. At the moment, all of these investments are related to nickel-to-stainless steel and intermediates for battery of electric vehicles. 

The Government of Indonesia has been working on the Government Regulation Draft on E-Commerce (Rencana Peraturan Pemerintah tentang Transaksi Perdagangan Melalui Sistem Elektronik or RPP TPMSE) since 2015, but to this day we have not yet seen any progress. Instead, the Government appears very much undetermined after the Ministry of Finance decided to withdraw its regulation on E-Commerce taxation.