Indonesia’s export declined 4.7% year-on-year to US$13.87 billion (FOB), while import declined 1.83% to US$15.03 billion (CIF). As a result, Indonesia suffered ‘trade deficit’ (not entirely goods, because of the cost of freight and insurance in the import) of US$1.16 billion. Oil and gas sector contributed US$454.8 million of ‘deficit’ despite downfall in prices.

Investors sold off shares in flag carrier Garuda Indonesia (GIAA) on Thursday (Feb. 14) after the airliner decided to cut prices of air tickets by 20% for all domestic routes, to responding the government’s order, after plenty of public outcry over the past month.

Entering the second presidential debate Sunday (Feb 17), state-owned EPC firm Hutama Karya has finally completed construction of Bakauheni-Terbanggi Besar (141 KM) toll road in Lampung province this week. Built with Rp16.8 trillion of investment, this will be the longest toll road in Sumatra, the second most populous island in the country.

In mid January, we reported that the Ministry of Communication and Informatics (Kominfo) had been working on revising the Government Regulation No. 82/2012 on Electronic System and Transaction (RPP PSTE), and that the Ministry was discussing the draft with the State Secretariat (Setneg). Professional associations have since reacted strongly against the draft.  

State-owned gas distributor Perusahaan Gas Negara (PGAS), which is now a subsidiary of state-owned company Pertamina, allocates a capital expenditure (capex) of US$400 million for this year, mostly to fund its gas pipe network project. In 2018, PGAS’s capex was US$500 million.

Labuan Bajo in Flores Island, East Nusa Tenggara, one of 10 emerging destinations prioritized by Jokowi-Kalla administration, recorded 163,807 visits of tourists last year, wherein nearly half were foreigners. Number of visitors has nearly doubled since 2016, but room for growth is still there. 

Organic chemical is still one of the largest import for Indonesia. The country imported US$6.93 billion worth of organic chemicals (including petrochemicals) last year, an increase of 17.45% from 2017. Import of plastics (made from petrochemicals) and the articles, meanwhile, grew 19.2% to US$9.2 billion.

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.