After years of pressures, property market in some major cities is set to grow following completion of major infrastructures. One big company listed on Indonesia Stock Exchange (IDX), for example, is reportedly in talks to acquire a parcel of land at Jl Gatot Subroto, South Jakarta for commercial property (apartment and office towers). 

The second presidential debate Sunday (Feb 17) will, among others, address infrastructure issues. The incumbent will likely explain Rp1,739 trillion of State budget used for infrastructure projects in the period of 2015-2019, substantially bigger than Rp737 trillion spent by SBY administration (2010-2014). Prabowo, the challenger, meanwhile, might exploit weaknesses in some infrastructure projects. 

The first light-rail transit (LRT) in Indonesia is in Palembang, the capital city of South Sumatra, a province known for its rich natural resources (oil and gas, coal) and plantation (palm oil and natural rubber). LRT, however, is also the main target of criticism from the opposition ahead of April 17 election, particularly because of its low utilization rate and high investment costs.

After decades of delay, Soekarno-Hatta international airport, one of the busiest in the world, will finally have its third runway, hopefully in June following completion of land acquisition. A total of 216 hectares of land needed have reportedly been acquired by PT Angkasa Pura II, the state-owned airport management company.

Investment stories in the chemical/petrochemical industry have been dominated by projects initiated by Chandra Asri Petrochemical (TPIA) in the past four years such as debottlenecking of naphtha cracker, construction and expansion of butadiene plant, and development of styrebe butadiene rubber with Michelin. 

Indonesia’s nickel processing industry continues to grow. In a relatively short period of time, Hengjaya Nickel Project, co-owned by ASX-listed Nickel Mines Ltd and Shanghai Decent (member of Tsingshan Steel Group), has started production of nickel pig iron (NPI) in the Indonesia Morowali Industrial Park (IMIP), Central Sulawesi province.

Indonesia welcomed 15.81 million visits by foreign tourist last year, an increase of 12.58% from 2017. While missing the target (17 million visits), the country is getting closer to achieve President Joko ‘Jokowi’ Widodo’s target to welcome 20 million visits by the end of 2019. Still far below neighbours, especially Thailand and Malaysia, but this is one of the country’s promising sectors. 

Before Joko Widodo as president, we have never seen in our history that some major infrastructures are built at the same time in the greater Jakarta area: mass rapid transit (MRT), light-rail transit (LRT), double-double track (regular train service), inner city toll road, Jakarta outer ring road (JORR)-2, and elevated toll road connecting Jakarta and the trans-Java toll road. 

Shares of nickel producer Vale Indonesia (INCO) gained 5.1% to Rp3720 on Wednesday (Jan. 30) as investors responded positively to the Company’s rights issue plan for 20% shares. The stock has gained 14.8% year to date.