Indonesia Economy Forum

[Nike]

Manufacturing industry sees growth in February

• News Desk
  The Jakarta Post
  

Jakarta / Wed, March 6, 2019 / 02:29 pm

Trade Minister Airlangga Hartarto steps out from a vehicle displayed at the Gaikindo Indonesia International Commercial Vehicle Expo (GIICOMVEX) 2018 in Jakarta on March 1. (Antara/Audy Alwi)
Industry Minister Airlangga Hartarto has welcomed growth in the manufacturing sector in January after stagnation in the previous month.

The growth was indicated by an increase in the purchasing managers’ index (PMI) in February to 50.1 from 49.9 in the previous month.

“It is good news from the manufacturing industry. The growth has made us more optimistic. From the PMI figure, we know that the manufacturing sector is growing. Investment has also grown,” he said in a statement on Tuesday.

The PMI, which is released each month, shows the performance of the manufacturing sector. The index is based on questions about production, new demand, employment, inventory and time of distribution. It was based on a survey completed by managers of 300 companies in various sectors, including the basic metal industry, chemicals, plastics, textile, garments as well as food and beverage products.

An index rate above 50 indicates growth in the manufacturing sector.

Airlangga said the ministry would analyze the decline of the PMI rate in January as the rate was above 50 percent in December and previous months.

“I think it is common for there to be a decline in January,” he said, adding that no conclusion could be made from the decline because manufacturing industry activity should monitored over a longer period.

The ministry projects the manufacturing sector to grow 5.4 percent this year. High growth is expected in food and beverage, machinery, textiles and garment, leather industry, footwear, metal products, computers and electronics.

The PMI rate in February was higher than Southeast Asia's PMI rate, which was 49.6, down from 4.9.7 in July 2017. Meanwhile, at the global level, the rate was recorded at 50.6, the lowest since June, 2016. (bbn)

 

[Nike]

Stadler rail gmbh invest more than 200 million US dollar in railways and loco manufacturing in Indonesia

Swiss Bangun Pabrik Kereta Api di Banyuwangi Senilai Rp 3 T
Bernhart Farras, CNBC Indonesia
NEWS

09 March 2019 19:00

Foto: ist
Jakarta, CNBC Indonesia - Produsen kereta api Swiss Stadler Rail mengatakan akan mebangun pabrik kereta api di Banyuwangi bersama PT INKA. Nilai investasi diperkirakan mencapai Rp 210 juta atau sekitar Rp 3 trilun.

Pemilik perusahaan Stadler Rail, Peter Spuhler menyampaikan hal tersebut secara langsung dalam serangkaian pertemuan dengan Menteri BUMN, Menteri Perindustrian dan Menko Maritim di Jakarta, Rabu (6/3/2019).

Dalam kunjungan ini, Peter dan sejumlah petinggi Stadler didampingi Duta Besar RI Bern Muliaman D Hadad, Pimpinan PT Inka dan Ketua Komite Indonesia Swiss Asian Chamber of Commerce ikut serta dalam pertemuan dengan Menteri-menteri yang dikunjungi.


Stadler Rail dan PT Inka akan membangun perusahaan joint venture di Banyuwangi untuk memproduksi kereta api regional, light rail vehicle dan kereta dalam kota atau Metro dengan investasi mencapai US$210 juta. Pembangunan dimulai tahun 2020 dengan kapasitas 250 unit pertahun dan akan mencapai 500 unit tahun 2025 dan 1000 unit per tahun pada 2030.

Untuk mewujudkan pembangunan pabrik tersebut, akan diadakan 2 tahapan yaitu:

Tahap pertama, selama 2 tahun akan diadakan rekrutmen tenaga kerja domestik, pembangunan supply chain dan perencanaan pembangunan. Lalu dilanjutkan dengan progran train the trainer, pengenalan budaya kerja Stadler dan kemampuan membangun jaringan.

Tahap kedua, pengiriman staf inti Stadler ke Indonesia yang akan kembali ke Swiss setelah staf Indonesia dalam menjalankan operasi pabrik sepenuhnya.

Pihak Stadler juga memaparkan target market hasil produksi Stadler INKA selain untuk memenuhi kebutuhan pasar Indonesia yaitu ke negara Asia lainnya dan Pasifik serta Afrika Sub Sahara.

"Tidak hanya hanya kebutuhan domestik yang tinggi, produksi Stadler Inka ini juga dapat dipasarkan di pasar ASEAN, Australia dan negara negara Afrika" ujar Duta Besar RI Bern Muliaman D Hadad.

Hubungan historis Indonesia dengan Afrika merupakan nilai tambah dalam mempermudah pemasaran produksi Stadler Inka ke Afrika.

Foto: ist

Kebutuhan akan sarana transportasi darat merupakan salah satu fokus pembangunan infrastruktur Indonesia, kata Menteri BUMN dalam diskusi dengan Stadler pada hari yang sama.

"INKA telah memainkan peran penting dalam memasok kebutuhan kereta api di Indonesia, adanya keterlibatan mitra asing yang mempunyai teknologi tinggi akan meningkatkan kapasitas PT Inka dalam memenuhi kebutuhan transportasi darat Indonesa" ujar Menteri Rini.

Menteri BUMN juga menekankan pentingnya program pendidikan vokasi yang melibatkan dunia industri untuk mencetak generasi kerja siap pakai.

Menteri Perindustrian dalam diskusi dengan delegasi Stadler menyatakan bahwa Indonesia akan dapat memberikan fasilitas tax holiday jika nilai investasi lebih dari US$200 juta. Fasilitas lebih lanjut diberikan jika Stadler membangun fasilitas pendidikan vokasi, khususnya vokasi perkeretaapian.

Menteri Koordinato Luhut juga mengatakan investasi Stadler dalam penciptaan lapangan pekerjaan dan membangun talent di bidang perkeretapian akan mendorong daya saing ekonomi Indonesia.

Pimpinan Stadler dan Dirut PT INKA telah menandatangani Head of Statement untuk membangun pabrik di Banyuwangi. Penandatanganan ini dilakukan dihadapan Bupati Banyuwangi Azwar Anas pada 7 Maret 2019.

Sebelumnya Indonesia telah melakukan pendekatan kepada Stadler yang dilakukan Duta Besar Muliaman Hadad dan Ketua Komite Indonesia SACC Jesse NG dari Bajak GmbH perihal Investasi. Pihak PT INKA juga telah mengunjungi Stadler di Bussnang, Swiss dan delegasi Stadler telah bertemu dengan pimpinan INKA dan meninjau fasilitas pabrik INKA di Madiun.

Foto: ist

https://www.cnbcindonesia.com/news/...abrik-kereta-api-di-banyuwangi-senilai-rp-3-t

 

[Nike]

Indonesia to export 16 cargoes of LNG to Singapore per year
5th Mar 2019 23:55

Director General of Oil and Gas of the Energy and Mineral Resources Ministry Djoko Siswanto . (Antara News/Aji Cakti)

Jakarta, (ANTARA News) - Indonesia plans to export 16 cargoes of liquefied natural gas (LNG) per year to Singapore starting 2020, an official said.

The LNG will come from Train-3 of Tangguh LNG Refinery based on an auction by BP Berau, Director General of Oil and Gas of the Energy and Mineral Resources Ministry Djoko Siswanto said here on Tuesday.

"We received approval from the government last Friday. The price is good. If I am not mistaken, it is 12.33 percent of Japan Crude Cocktail (JOC). But I will check it again," he stated after opening a trilateral meeting between Indonesia, Japan, and the United States.

Under the contract, 84 cargoes of LNG will be delivered in five years. In the first stage, four cargoes of LNG will be shipped, and later 16 cargoes of LNG will be shipped every year until 2025, he noted.

The Tangguh Train-3 Refinery project costs an estimated US$8 billion and is projected to be able to produce 700 million standard cubic feet per day.

The Indonesian government is looking into the possibility of cooperation with the US and Japan to develop LNG business to support their respective national energy security.

"There are many possible kinds of cooperation discussed at the forum of three countries this time, including the development of technology and the export and import of LNG," Chief of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Dwi Soetjipto remarked.

Soetjipto revealed that the market for Indonesia`s LNG is still widely open and that investors will have a lot of business opportunities if they invest in Indonesia.

When it comes to LNG, Indonesia is focusing on developing the existing natural resources, developing infrastructures to ensure LNG supplies, and managing LNG-based economy more properly.

Reporting by Afut Nusyirwan


Reporter: Antara

Editor: Suharto

COPYRIGHT © ANTARA 2019

 

[Nike]

Pertamina hopes to benefit from Petronas deal

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Sun, March 10, 2019 / 09:47 pm

The logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)
State energy holding company Pertamina hopes that its recent deal with Malaysia’s state-owned oil giant Petronas will help its businesses expand more efficiently in the long run amid fluctuations in the global oil price.

The deal, signed in Kuala Lumpur, Malaysia, in late February, would be an umbrella agreement for future business cooperation between both companies in terms of operational activities and other strategic measures, said Heru Setiawan who is Pertamina’s director of investment planning and risk management.

As a follow-up to a previous government-to-government agreement, the deal also enables the two parties to join hands in working on their overseas portfolios, or oil and gas fields outside of their respective countries.

Heru said there could be possible collaboration at the upstream, midstream and downstream sides, such as research and development, joint exploration activities, technology implementation in oil and gas blocks as well as the trade of products and the sharing of knowledge with regards to renewable energy.

As for collaboration in overseas field, Heru said, one example would be cooperation in oil refining in East Asia.

For the initial stage, the agreement already covered a crude swap mechanism, in which Pertamina’s oil production in Malaysia’s oilfields of Kikeh, Kimanis and Kidurong was exchanged with the one produced by Petronas in Indonesia’s Jabung and Ketapang fields.

“We are seeking countries that have an excess [refining] capacity as we know that the international Brent [crude price] is decreasing. Therefore, we can utilize the [excess] capacity,” Heru said.

“In a nutshell, what we agreed upon with Petronas is whether we can use its refineries to process crude from [Pertamina’s production in] Malaysia. It can also be done for our crude [produced] in other countries.”

Pertamina Internasional EP (PIEP), which is Pertamina’s arm that is responsible for managing its overseas assets, handles fields in 12 countries, namely Iraq, Algeria, Malaysia, Canada, Colombia, France, Gabon, Italy, Myanmar, Namibia, Nigeria and Tanzania.

In Malaysia, PIEP owns shares in eight blocks, three of which are production blocks with each stake not higher than 25.5 percent. The Kikeh field is among the eight blocks, located at the offshore Block K near Sabah.

Heru added that beside the crude processing deal, Pertamina also discussed further cooperation with Petronas in oil and gas exploration activities in the Middle East and Africa, considering the fact that both companies own assets in those regions.

“In the upstream [sector], like our asset in Gabon, for example, Petronas also owns assets there. So, we can cooperate in our business operation, such as joint cargo or operations; we can share the infrastructures together,” he said.

Pertamina upstream director Dharmawan Samsu said the company was also looking at increasing its stake in Malaysia’s oil and gas fields, including the Kikeh field.

“We have a share [in Kikeh] of around 25 percent and there’s possibility for us to farm-in, but we are still in early discussions about the concept,” he said.

Dharmawan, a former country head of British oil giant BP, said striking a long-term deal with Petronas was an effort to make Pertamina a global energy player.

The statements from both Pertamina’s executives came against the backdrop of the company’s dwindling profitability, which is arguably due to the government’s order to not increase fuel prices, according to experts.

Pertamina finance director Pahala Mansury said the company had booked at least Rp 5 trillion (US$348.7 million) in profit last year, which was a far cry from the Rp 20 trillion it was able to post several years earlier.

He declined to confirm when reporters asked him whether the amount could be lower than Rp 10 trillion.

“I couldn’t say [whether it was lower than Rp 10 trillion]. We’ll have to wait for the final audit from the Supreme Audit Agency [BPK] and hopefully it [the result] can by published by the end of March,” he said.

Separately, Toto Pranoto, the managing director of the University of Indonesia's Management Institute, told The Jakarta Post that the government should improve the cost structure of state-owned enterprises, especially high-leveraged companies like Pertamina.

“[The government] needs to strive for a better cost structure, especially for firms with a high leverage. […] By doing so, it will help [the companies’ finances] when their revenue growth isn’t doing well,” he said.

 

[UMNOPutra]

Pertamina hopes to benefit from Petronas deal

• Stefanno Reinard Sulaiman
  The Jakarta Post

Jakarta / Sun, March 10, 2019 / 09:47 pm

The logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)
State energy holding company Pertamina hopes that its recent deal with Malaysia’s state-owned oil giant Petronas will help its businesses expand more efficiently in the long run amid fluctuations in the global oil price.

The deal, signed in Kuala Lumpur, Malaysia, in late February, would be an umbrella agreement for future business cooperation between both companies in terms of operational activities and other strategic measures, said Heru Setiawan who is Pertamina’s director of investment planning and risk management.

As a follow-up to a previous government-to-government agreement, the deal also enables the two parties to join hands in working on their overseas portfolios, or oil and gas fields outside of their respective countries.

Heru said there could be possible collaboration at the upstream, midstream and downstream sides, such as research and development, joint exploration activities, technology implementation in oil and gas blocks as well as the trade of products and the sharing of knowledge with regards to renewable energy.

As for collaboration in overseas field, Heru said, one example would be cooperation in oil refining in East Asia.

For the initial stage, the agreement already covered a crude swap mechanism, in which Pertamina’s oil production in Malaysia’s oilfields of Kikeh, Kimanis and Kidurong was exchanged with the one produced by Petronas in Indonesia’s Jabung and Ketapang fields.

“We are seeking countries that have an excess [refining] capacity as we know that the international Brent [crude price] is decreasing. Therefore, we can utilize the [excess] capacity,” Heru said.

“In a nutshell, what we agreed upon with Petronas is whether we can use its refineries to process crude from [Pertamina’s production in] Malaysia. It can also be done for our crude [produced] in other countries.”

Pertamina Internasional EP (PIEP), which is Pertamina’s arm that is responsible for managing its overseas assets, handles fields in 12 countries, namely Iraq, Algeria, Malaysia, Canada, Colombia, France, Gabon, Italy, Myanmar, Namibia, Nigeria and Tanzania.

In Malaysia, PIEP owns shares in eight blocks, three of which are production blocks with each stake not higher than 25.5 percent. The Kikeh field is among the eight blocks, located at the offshore Block K near Sabah.

Heru added that beside the crude processing deal, Pertamina also discussed further cooperation with Petronas in oil and gas exploration activities in the Middle East and Africa, considering the fact that both companies own assets in those regions.

“In the upstream [sector], like our asset in Gabon, for example, Petronas also owns assets there. So, we can cooperate in our business operation, such as joint cargo or operations; we can share the infrastructures together,” he said.

Pertamina upstream director Dharmawan Samsu said the company was also looking at increasing its stake in Malaysia’s oil and gas fields, including the Kikeh field.

“We have a share [in Kikeh] of around 25 percent and there’s possibility for us to farm-in, but we are still in early discussions about the concept,” he said.

Dharmawan, a former country head of British oil giant BP, said striking a long-term deal with Petronas was an effort to make Pertamina a global energy player.

The statements from both Pertamina’s executives came against the backdrop of the company’s dwindling profitability, which is arguably due to the government’s order to not increase fuel prices, according to experts.

Pertamina finance director Pahala Mansury said the company had booked at least Rp 5 trillion (US$348.7 million) in profit last year, which was a far cry from the Rp 20 trillion it was able to post several years earlier.

He declined to confirm when reporters asked him whether the amount could be lower than Rp 10 trillion.

“I couldn’t say [whether it was lower than Rp 10 trillion]. We’ll have to wait for the final audit from the Supreme Audit Agency [BPK] and hopefully it [the result] can by published by the end of March,” he said.

Separately, Toto Pranoto, the managing director of the University of Indonesia's Management Institute, told The Jakarta Post that the government should improve the cost structure of state-owned enterprises, especially high-leveraged companies like Pertamina.

“[The government] needs to strive for a better cost structure, especially for firms with a high leverage. […] By doing so, it will help [the companies’ finances] when their revenue growth isn’t doing well,” he said.

It would be better and highly appreciate if Indonesia offer the majority ownership of PERTAMINA to PETRONAS ... So, PERTAMINA can expand its business globally through PTERONAS's business network ...

As a subsidiary of PETRONAS .. The contribution of PERTAMINA to the Government of Indonesia such as Tax, Export, FX Income/Revenue, Production and Distribution of Oil and Gas products etc will be higher and more profitable (more efficient and focus in its business)... Maybe . there will be huge protest in Indonesia by your ultra nationalist ... but .. it will be not a big issue or concerns because it will benefit for both parties ...

 

[katarabhumi]

Indonesia plans to fuel all diesel power plants with CPO within two years
The Jakarta Post - Mon, March 11, 2019/01:10 pm

Energy and Mineral Resources Minister Ignasius Jonan says the government is giving state-owned electricity company PLN two years to fuel all diesel power plants in the country with biodiesel made from crude palm oil (CPO).

Speaking before hundreds of students and other Indonesians living in Japan, Jonan said in Tokyo on Sunday that PLN was currently carrying out a study on how to convert CPO into fuel that could be used for diesel power plants.

“PLN is trying to use palm oil. Currently, the Plaju refinery [in South Sumatra] converts palm oil into diesel fuel,” said Jonan in a statement received on Monday.

Jonan was in Japan to explain to the Indonesians in the country the achievements made in energy development during the four years President Joko “Jokowi” Widodo has been in office. Indonesian Ambassador to Japan Arifin Tasrif also attended the event at the Indonesian Embassy.

The government had made it mandatory for refineries to produce 20 percent blended biodiesel (B20) since September last year and currently it has been conducting research into the use of B100 biodiesel as the major source of energy in trying to reduce the dependency on fossil fuels.

Jonan said the main aim of the Jokowi administration was to continue the energy program of previous governments with an emphases on energy distribution to remote areas. To implement the program, the government distributed solar-powered lamps (LTSHE) to 2,519 villages, particularly those not connected to any PLN electricity grid.

Jonan said the LTSHE program contributed 0.12 percent to the national electrification program. He added that the distribution of such technology was needed since PLN electricity networks could not be constructed any time soon in those areas because of geographical challenges. (bbn)

https://www.thejakartapost.com/news...l-power-plants-with-cpo-within-two-years.html


=======

It would be better and highly appreciate if Indonesia offer the majority ownership of PERTAMINA to PETRONAS ... So, PERTAMINA can expand its business globally through PTERONAS's business network ...

As a subsidiary of PETRONAS .. The contribution of PERTAMINA to the Government of Indonesia such as Tax, Export, FX Income/Revenue, Production and Distribution of Oil and Gas products etc will be higher and more profitable (more efficient and focus in its business)... Maybe . there will be huge protest in Indonesia by your ultra nationalist ... but .. it will be not a big issue or concerns because it will benefit for both parties ...

Interesting. Sure.. But first Malaysia must pledge loyalty to Indonesia and become our 36th province.

.

.

 

[Nike]

How are SOEs performing under Jokowi?

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Tue, March 12, 2019 / 06:48 am

President Joko "Jokowi" Widodo (third left), along with state-owned electricity firm PLN president director Sofyan Basyir (left), SOE Minister Rini Soemarno (right), Energy and Mineral Resource Minister Igantius Jonan (second right) and Sidrap Regent Rusdi Masse, pushes a button during the inauguration of a wind farm in Mattirotasi, Sidrap, South Sulawesi in 2018. (Courtesy of /Presidential Palace)
Since President Joko “Jokowi” Widodo assumed power in 2014, he has made infrastructure development one of his main programs, with many state-owned enterprises (SOEs) involved in most of the projects.

The decision of the administration to give SOEs the infrastructure projects has left the business community with a question about fairness.

Meanwhile, there are also questions about the financial performance of these state-owned companies and the situation of the state budget regarding the financing of those projects.

Less than two months before the April 17 presidential election, the government hosted a meeting in Jakarta with leaders of about150 SOEs, reminding them about how supportive the government is for their activities.

SOE Minister Rini Soemarno emphasized that the support for the SOEs started at the beginning of President Jokowi's tenure in 2014.

"The goal is to illustrate that for the last four years [until 2018], we [SOEs] have been fully supported by Jokowi, especially in the first days of the government when he made capital injections into SOEs," she said.

"[The capital injection] allowed us to invest and to complete many of the government's programs, especially for connectivity."

The total capital expenditure (capex) of the SOEs was Rp 221 trillion (US$15.6 billion) in 2015, which doubled to Rp 487 trillion in 2018, according a document obtained by The Jakarta Post.

The capex was mainly for infrastructure projects, which had been the main mission of the Jokowi administration for the last four years before it changed its focus to human development this year.

The government debt, however, rose 84.2 percent from Rp 1.2 trillion in 2015 to Rp 2.3 trillion last year and then its third-party funds (DPK) also rose 30.3 percent from Rp 2.4 trillion in 2015 to Rp 3.2 trillion.

“[Growing debt] is normal, just like [for] any other growing company," SOE Ministry secretary Imam Apriyanto said. "The amount of debt is still at a safe level.”

Meanwhile, the total assets of SOEs as of December 2018 were worth Rp 8.09 trillion, 40.4 percent higher than their total assets worth Rp 5.7 trillion in 2015.

The profits of SOEs grew 25.3 percent to Rp 188 trillion last year, up from Rp 150 trillion in 2015, making their contribution to the state budget in the form of taxes, non-tax revenues and dividends Rp 422 trillion, a 39.2 percent increase from 2015.

“By the end of this year, we aim to book Rp 200 trillion in profits, a 6.3 percent [increase] from last year's Rp 188 trillion,” Imam said.

When asked about the number of SOEs that are still recording losses, Rini said there were fewer than a dozen.

Imam explained that two of them were the state-owned PT Merpati Nusantara Airlines and the state postal service, PT Pos Indonesia.

“The clear message from the minister to them [the SOEs in a loss position] is that there must be no more cases of salary payment delays, especially cases of unpaid salaries,” he said.

Back in November, it was reported that Merpati had a total debt of Rp 10.95 trillion: Rp 1.09 trillion owed to preferential creditors, Rp 5.99 trillion to concurrent creditors and Rp 3.87 trillion to separate creditors.

Meanwhile, the latest news about Pos Indonesia’s financial problems was that workers were not paid their salaries for at least a month earlier this year.

In the energy sector, Imam said state-owned energy holding company Pertamina and state-owned electricity firm PLN still booked profits last year. He did not disclose the exact amounts.

Pertamina finance director Pahala Mansury said last year the firm booked at least Rp 5 trillion in profits. “We’ll wait for the final audit from the Supreme Audit Agency [BPK] and hopefully it could by published by end of March,” he said.

In previous years, the company was able to book profits of at least Rp 20 trillion, so Rp 5 trillion would be only 25 percent of the norm.

Imam of the SOE Ministry said the government has not yet devised a plan to privatize SOEs in a bid to increase their capital this year, but only focused on completing the program to set up “holding” programs.

“[The programs to set up holding companies that are] in the pipeline are for infrastructure, housing, pharmaceuticals and asset management. By doing this, we could speed up the process of getting extra funds and avoid the use of the state budget,” he said.

Commenting on the performance of SOEs under the four years of Jokowi’s tenure, an SOE expert from the University of Indonesia, Toto Pranoto, said the establishment of holding companies has proven to be effective.

“In some parts, the holding company has shown a positive trend, but there’s still room for improvement. Cement and fertilizer holdings have gone well, but the plantation holding company still lacks improvement,” he said.

Fertilizer and cement holding companies were set up before the 2000s under the names of the Pupuk Indonesia Holding Company (PIHC) and PT Semen Indonesia.

The move was followed by the setting up of a plantation-forestry holding company under the name PTPN III in 2014, three years later by the Pertamina energy holding company and four years later by the PT Indonesia Asahan Aluminium mining holding company.

Another task, Toto said, is to slim down the cost structures of several SOEs, especially of SOEs that have big leverage, such as PLN, state-owned steel producer Krakatau Steel, national flag carrier Garuda Indonesia and Pertamina.

Toto said he believes the aim of having total profits from SOEs of Rp 200 trillion this year would not be easy as the growth of revenues is not big enough because of global factors, such as growing trade protectionism.

“So [to achieve the target] they need to radically repair the cost structure [in each SOE], or basically make all activities more efficient as that would compensate for the low growth in revenues.” he said.
https://www.thejakartapost.com/news/2019/03/11/how-are-soes-performing-under-jokowi.html

 

[Nike]

Consumer Price Index: Indonesian Inflation Eases to Near-Decade Low
11 Maret 2019 |

• Consumer Price Index
• Food Prices
• BPS
• Electricity Price
• Fuel
• Inflation

Based on the latest data from Statistics Indonesia (BPS), consumer prices in Indonesia grew 2.57 percent year-on-year (y/y) in February 2019, a near-decade low, and below our forecast of 2.75 percent (y/y). The last time we saw this low level of inflation in Indonesia was back in November 2009.

Government policies are key reason for low inflation, particularly the government’s efforts to keep the food supply at adequate levels (by carefully monitoring and acting once a shortage is on the horizon). Another key reason that allows low inflation in Indonesia is the government’s decision (which was already made and announced last year) to leave prices of subsidized fuels and electricity unchanged until late-2019.

On a monthly basis, consumer prices fell 0.08 percent in February 2019, led by a drop in food prices and prices of non-subsidized fuels. Food prices that experienced deflation last month included chicken meat, eggs, red onions, chillies, cooking oil and sugar. It is common to see deflation in February as prices are still easing after the peak in the December/January period, while food prices tend to ease ahead of the start of the big harvest season.

 

[Nilgiri]

Consumer Price Index: Indonesian Inflation Eases to Near-Decade Low
11 Maret 2019 |

• Consumer Price Index
• Food Prices
• BPS
• Electricity Price
• Fuel
• Inflation

Based on the latest data from Statistics Indonesia (BPS), consumer prices in Indonesia grew 2.57 percent year-on-year (y/y) in February 2019, a near-decade low, and below our forecast of 2.75 percent (y/y). The last time we saw this low level of inflation in Indonesia was back in November 2009.

Government policies are key reason for low inflation, particularly the government’s efforts to keep the food supply at adequate levels (by carefully monitoring and acting once a shortage is on the horizon). Another key reason that allows low inflation in Indonesia is the government’s decision (which was already made and announced last year) to leave prices of subsidized fuels and electricity unchanged until late-2019.

On a monthly basis, consumer prices fell 0.08 percent in February 2019, led by a drop in food prices and prices of non-subsidized fuels. Food prices that experienced deflation last month included chicken meat, eggs, red onions, chillies, cooking oil and sugar. It is common to see deflation in February as prices are still easing after the peak in the December/January period, while food prices tend to ease ahead of the start of the big harvest season.

This is great.....Jokowi has overall managed the economy better than predecessors would you say?

 

[Nike]

This is great.....Jokowi has overall managed the economy better than predecessors would you say?

I would say he is better but not much by bigger margin well afterall most of Indonesian president is not clueless about economy policy except Soekarno, some fundamental problem still persist like current account deficit, low investment growth, rising import bill on energy sector and so on.

 

[trishna_amṛta]

This is great.....Jokowi has overall managed the economy better than predecessors would you say?

Overall he did achieve more in less time with less budget. However the main problem is although Jokowi has great vision overall, his vision doesn't translate well down the chain of command. Most of the time the peoples in ministerial level or provincial and municipal level completely failed to implement his policy or sometime even make thing worse.

 

[Nike]

Lippo says Meikarta project to be fully back on track

• News Desk
  The Jakarta Post
  

Jakarta / Wed, March 13, 2019 / 10:33 am

An aerial photo taken on Tuesday shows the construction of apartment buildings at Meikarta in Cikarang, Bekasi regency, West Java. (Antara/Hafidz Mubarak A. )
The Lippo Group has expressed confidence that the Meikarta township in Bekasi, West Java, which was under a spotlight because of a high-profile corruption case, would soon get back on track as the group was committed to pouring fresh money into the project.

The group says the commitment to Meikarta was part of its business “revitalization” plan following a recent reshuffling of its boards of directors and commissioners.

PT Lippo Karawaci chief executive officer (CEO) John Riady said he was not ready to explain the details of the plans for the Meikarta project, including the funds that would be disbursed for it. “What is sure is that the Meikarta development will be 100 percent completed,” John said on Tuesday as reported by kontan.co.id.

Previously, the Lippo Group announced that the company would attempt to raise US$1.01 billion, $730 million of which was expected to come from the rights issue of PT Lippo Karawaci, while another $280 million was expected to come from asset divestment.

The Riady family, through PT Inti Anugerah Pratama, would act as a standby buyer for the corporate action. “The rights issue is to be completed in the first half of this year,” John said, adding that the divestment process was expected to be completed in the second half.

He said PT Lippo Karawaci would sell Mall Puri in West Jakarta to the Lippo Malls Indonesia Retail Trust, whose agreement had been signed on Monday.

John said if the fundraising was successful, Lippo would carry out expansion and repay some of its debts, including buying back up to $150 million of its $410 million in senior notes that would mature in 2022 and $425 million in senior notes that would mature in 2026.

Apart from using the proceeds to carry out buyback and to finance the expansion plan, they would also be used to pay interest on the company’s debt.

John said Lippo Karawaci planned to boost the performance of its three business segments – property, retail business and healthcare services.

On property, he added, the company would no longer focus on luxury apartments, but it would also develop residences for middle-income people. (bbn)

 

[UMNOPutra]

Interesting. Sure.. But first Malaysia must pledge loyalty to Indonesia and become our 36th province.
.

Read this good article ... maybe Indonesia will accept our offer to acquire PERTAMINA as a subsidiary of PETRONAS ..
https://www.businessinsider.com/unl...etronas-and-indonesias-pertamina-2019-3/?IR=T

 

[Indos]

Read this good article ... maybe Indonesia will accept our offer to acquire PERTAMINA as a subsidiary of PETRONAS ..
https://www.businessinsider.com/unl...etronas-and-indonesias-pertamina-2019-3/?IR=T

You better focus and fix your Khazanah first before boasting about your Petronas in this thread

Khazanah posts loss before tax of RM6.27b in 2018, unveils fresh mandate

KUALA LUMPUR: Sovereign wealth fund Khazanah Nasional Bhd posted a loss before tax of RM6.27bil in 2018 compared to a profit before tax of RM2.89bil a year earlier.

"Profitability was affected due to fewer divestments, reduced dividend income and higher impairments, during a period of transition for Khazanah in an unfavourable market," it said in a statement on Tuesday.

Its net worth adjusted (NWA) declined by 21.6% to RM91bil on Dec 31, 2018, from RM116bil a year ago. Its realisable asset value fell to RM136bil from RM157bil during the same period.

Read more at https://www.thestar.com.my/business...ce-reveals-fresh-mandate/#m8QGepakjYCjDTwD.99

 

[Nike]

You better focus and fix your Khazanah first before boasting about your Petronas in this thread

Khazanah posts loss before tax of RM6.27b in 2018, unveils fresh mandate

KUALA LUMPUR: Sovereign wealth fund Khazanah Nasional Bhd posted a loss before tax of RM6.27bil in 2018 compared to a profit before tax of RM2.89bil a year earlier.

"Profitability was affected due to fewer divestments, reduced dividend income and higher impairments, during a period of transition for Khazanah in an unfavourable market," it said in a statement on Tuesday.

Its net worth adjusted (NWA) declined by 21.6% to RM91bil on Dec 31, 2018, from RM116bil a year ago. Its realisable asset value fell to RM136bil from RM157bil during the same period.

Read more at https://www.thestar.com.my/business...ce-reveals-fresh-mandate/#m8QGepakjYCjDTwD.99

So BUMN holding of ours should buy Khazanah and made Khazanah subsidiary of BUMN Holding