Those Getting Tax Holidays (1)
Eight companies have recently been granted tax holidays by the government with combined investment commitment above US$10 billion. One of them is investing in mineral processing located in Indonesia Morowali Industrial Park (IMIP), Central Sulawesi province. The other mineral processing is located in Konawe Industrial Park, Southeast Sulawesi. One petrochemical project is located in Serang, Banten province. Who are they?
Électricité de France
Whenever we’re talking about French investment in Indonesia, we’d refer to Total E&P, the operator of the massive Mahakam Block in East Kalimantan. Another french investment that would come up in our minds is Eramet’s investment in PT Weda Bay Nickel in Halmahera, Maluku. In recent days, we’ve heard of a possible French investment in Indonesia’s renewable energy (EBTE). That investment might come from Électricité de France (EDF).
Arcandra vs Chevron
The Ministry of Energy and Mineral Resources (ESDM) has not listed the Makassar Block for the third stage of auction this year. ESDM only listed the South Andaman working area, which is located offshore in Aceh’s Andaman waters; the South Sakakemang working area, in South Sumatera; the Anambas working area in the Riau Islands; and the Maratua working area in North and East Kalimantan. But why has ESDM left out the Makassar Block?
PLN Secures Rp24.2 Trillion Loan
State-owned PT Perusahaan Listrik Negara (PLN) has struggled to meet the President’s 35,000 MW electrification target. The weakening of the rupiah has a been a major deterrent. The situation got worse so that on September, 2018, the Government had to postpone the construction of some of the power plants in Java.
Retailers in Q3: Matahari Putra Prima
Retailer Matahari Putra Prima (MPPA), which manages Hypermart, Boston, etc, reported net loss of Rp336 billion in the first nine months of 2018, down 12.9% from the corresponding period last year. The company, controlled by Lippo Group, looked improved in third quarter with net loss of Rp73.4 billion only against Rp216 billion in the comparable period last year.
Speculations on Holcim Indonesia (2)
Speculation about acquisition has lifted the shares of third largest cement producer Holcim Indonesia (SMCB) by almost 100% in the past two months. Some competitors, including market leader Semen Indonesia (SMGR) and China National Building Materials (CNBM), have been mentioned for having interest in the company.
Weaker Q3 for Bakrie Media
PT Visi Media Asia (VIVA) Tbk, a media company controlled by Bakrie Group, booked net loss of Rp498 billion in the first nine months of 2018 against a tiny profit in the corresponding period last year due to poor performance of advertising revenues and squeezed operating margins. VIVA, parent of ANTV and TVOne, reported even weaker performance in third quarter.
Losses Expanded, Airasia Needs Capital Injection
PT Airasia Indonesia Tbk (CMPP) reported net loss of Rp639 billion in the first nine months of 2018, expanded by 45% from the corresponding period last year. Higher fuel costs forced the airline to report huge operating loss in the period, while tougher competition resulted in 1.4% decline in sales revenues.
Retailers in Q3: Erajaya
The collapse of Trikomsel Oke (TRIO) has solidified the position of Erajaya Swasembada (ERAA) as the largest retailer for cellular phones and tablets in the country. In the first nine months of 2018, Erajaya, popular with its Erafone outlets, booked net profit of Rp637 billion, skyrocketed by 186% from the corresponding period last year.
Retailers in Q3: ACE Hardware
Can anybody challenge ACE Hardware (ACES)? This modern retailer for tools and home improvement booked net profit Rp697 billion in Jan-Sep 2018, an increase of 32.5% from the corresponding period last year. This Company reported net profit margin of 13.5%, substantially bigger than convenience store operators like Indomaret and Alfamart, which reported margin of 0.7% respectively.