The property market is expected to resume its activity though in gradual following the victory of incumbent Joko “Jokowi” Widodo in the April 17 presidential election. Although opposition leader Prabowo Subianto sued the results announced by the General Election Commission (KPU) on May 21 at the Constitutional Court, we assess that Jokowi now possesses a strong mandate to follow through on his main campaign pledge of continuing to develop and complete massive new infrastructure projects.

Minister of Industry Airlangga Hartarto is in Japan this week to promote investments in the manufacturing industry. Airlangga, who is also chairman of Golkar Party, met leaders of Sojitz and Nippon Steel to discuss their respective expansion projects in Indonesia. Sojitz, in the meeting, reiterated its intention to build new methanol plant in Indonesia.

Oil gas firm Medco Energi Internasional (MEDC) has completed the acquisition of Ophir Energy Plc in a recommended all-cash offer value of £408.4 million. This acquisition is considered to be a good step because the Company will obtain a portfolio of assets that complement each other, increase scale, diversify, and provide growth that is beneficial to stakeholders.

Energy firm Barito Pacific (BRPT) allocates capital expenditure (capex) of US$560 million for 2019, used to fund its expansion of petrochemical (US$460 million) and energy (US$80 million). The Company target to complete the construction of a new factory, producing polypropylene, this year which has a production capacity of 400,000 tons per annum. 

Coal miner Indo Tambangraya Megah (ITMG) reported a 32.7% drop in net profit for the first quarter (Q1) of 2019 period, due to growing costs of revenues. It booked a net profit of US$38.9 million in the said period, compared to US$58 million a previous year.

Thailand’s largest industrial conglomerate Siam Cement Group Pcl (SCG) acquired a 55% stake in Indonesian paper packaging company, PT Fajar Surya Wisesa Tbk (FASW) from existing shareholders for $665 million, equivalent Rp9.6 trillion. “The major shareholding in Fajar...

PT Bentoel Internasional Investama Tbk (RMBA), a company controlled by cigarette giant British American Tobacco Inc, reported gross profit of Rp728.3 billion in the first quarter of 2019, nearly doubled from the corresponding period of 2018, thanks to strong sales revenue growth. 

State-owned construction firm PT PP (PTPP) booked profit attributable to owner of Rp176 billion in the first quarter (Q1) of 2019; it grew 12.5% from Rp156 billion in the corresponding period of 2018. Revenues rose 34.9% to Rp 4.97 trillion from previous Rp3.68 trillion. The Company booked gross profit of Rp659 billion, an 18% growth year on year (y/y), and operating profit grew 32.4% to Rp449 billion, a 32.4% growth y/y.

Gudang Garam (GGRM) has taken over cigarette market leadership from HM Sampoerna (HMSP), thanks to its stronger performance in the first quarter of 2019. Unlike Sampoerna, whose sales revenues were flat at Rp23 trillion, Gudang Garam enjoyed strong growth of 19.2% to Rp26.2 trillion.