Indonesia Morowali Industrial Park (IMIP) in Morowali Regency, Central Sulawesi province, has been regular target of criticism by opposition related to the fast growing Chinese expatriate community in Indonesia. IMIP, however, has grown into one of the largest clusters for nickel-to-steel in the country.

Joko “Jokowi” Widodo and Jusuf Kalla promised that their government would develop 35.000 MW of electrification capacity in five years from 2014. Their term is almost over and yet they have not achieved the said target. The Ministry of Energy and Mineral Resources (ESDM) told the press last week (Jan. 25) that the Government will not meet the 35,000 MW target this year, and that they’d need five more years.

Businesses are waiting for the amendment of the Oil and Gas Law (UU Migas). The Ministry of Energy and Mineral Resources (ESDM) have been working on the amendment with the House of Representatives (DPR), particularly the Commission VII of the DPR. Two years have passed since deliberations began but we did not see any progress. Recently, however, the ESDM has submitted the problems inventory list (DIM) of the amendment draft to the State Secretariat (Setneg)

Indonesia Automotive Industry Association (Gaikindo) recorded car sales of 1.15 million units last year, grew 6.3% from 1.07 million units in 2017. Motorcycle sales, meanwhile, increased by 8.44% to 6.38 million units. So cars and motorcycles grew higher than the GDP growth, suggesting strong household consumption.

Fast growing electric vehicle (EV) market has triggered competition in the EV battery business. The recently announced partnership between Toyota Motor Corporation and Panasonic Corporation, key battery supplier for Tesla, intensifies competition in the EV battery, and, accordingly, control over metal resources, especially nickel.

Environmental pollution in the extractive sector has not been much publicized. The Government rarely appeared to be on the aggressive front on this matter. That is until recently. On Monday Jan. 21, the Ministry of Environment and Forestry (KLHK) announced the name of the companies responsible for pollution. The names mentioned are that of huge companies.

Pretty much as predicted in our article last month, tire giant Michelin (France) has signed an agreement to acquire 80% of PT Multistrada Arah Sarana (MASA) Tbk for US$439 million. In addition, through the transaction Michelin will acquire a 20% stake in the retailer PT Penta Artha Impressi in a partnership with Indomobil and private investors. 

Waskita Karya (WSKT) and Jasa Marga (JSMR) are set to collect money from trans-Java toll road this week, easing off cash-flow pressures and allowing them to focus in the development of other toll road projects. Jasa Marga will also start commercial operation of Section I of Medan-Kualanamu-Tebing Tinggi (MKTT) toll road in North Sumatra. 

The Government of Indonesia is working towards the amendment of Coal Contract of Work (PKP2B), particularly those that will expire this year, such as the PKP2B of PT Tanito Harum, PT Kumbama Mining, and PT Sumbawa Timur Mining.

One step closer to reality! Bukit Asam, Pertamina, and Air Products and Chemicals Inc (USA) have on Wednesday (Jan 16) signed agreement for the establishment of joint venture company to process coal into dimethyl ether (DME), an alternative for liquified petroleum gas (LPG). This will be the first major initiative to add value to Indonesian coal resources.