Indonesia Economy Forum

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Dirgantara Indonesia to produce composite parts for Airbus, Boeing

• Harry Suhartono and Fathiya Dahrul
  Bloomberg
  

Jakarta / Tue, May 14, 2019 / 10:36 am

A CN295 plane produced by state-owned aircraft industry PT Dirgantara Indonesia (PTDI) was parked at PNdok Cabe Airport in Pondok Cabe, Southeast Tengerang, Banten after a delivery ceremony to the National Police on Sept. 7 at the Air Police Directorate headquarters. (kontan.co.id/Zaki Ari Setiawan)
Dirgantara Indonesia, a supplier of aluminum wing components for Airbus SE’s A320 and A380 model jets, is developing the production capability to supply non-metal aircraft parts as well.

The company is “exploring opportunities” to produce so-called composite parts -- typically made from fiberglass or carbon fiber -- for both Airbus and Boeing within the next two years, President Director Elfien Goentoro said in an interview in Jakarta Monday. The state-owned company, which is also an aircraft manufacturer, intends to triple its plane production to 56-a-year by 2024, he said.

The expanded production plans would support the Indonesian government’s efforts to reduce the nation’s dependence on commodities and narrow the current account deficit. Dirgantara, based in West Java, expects its latest 19-seat propeller plane, the N219, to obtain certification from Indonesian regulators this year, Goentoro said.

“We want to expand our composite-parts production facilities so hopefully by 2021, we can start taking orders for these aircraft parts,” Goentoro said. “We also plan to invest $119 million to build a facility dedicated to producing the N219.”

Island Hoppers

The aircraft would be for use in industries including tourism to provide access to remote areas, such as some of the 17,000 islands that make up Indonesia, the world’s largest archipelago. Dirgantara plans to produce 36 of these aircraft annually by 2024 with a target to exporting half of them, in addition to making 20 other propeller planes a year, Goentoro said.

The company is targeting orders for the N219 in the Philippines, Thailand, Malaysia, East Timor, Nepal, Senegal and South Korea this year, Goentoro said. “Our company’s intention is to boost our exports significantly so we can have a better balance between our domestic contracts and contracts denominated in foreign currencies.”

Dirgantara plans to boost its aircraft maintenance, repair and overhaul business and is certified by Airbus to service some of its military aircraft and helicopters, Goentoro said.

The company previously supplied parts for Boeing’s 737 family of aircraft under a contract that has expired, Goentoro said. Dirgantara wants to secure a new contract with the U.S. aircraft maker, he said, without specifying whether they are in discussions.

Goentoro also said he’s in talks with Indonesian finance ministry officials to allow the N219, which was developed domestically, to be sold to local customers without attracting a luxury tax from the government.

https://www.thejakartapost.com/news...roduce-composite-parts-for-airbus-boeing.html

Should do this since two or three decades ago

 

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Soekarno-Hatta Airport Aiming to be an International Hub Airport
Translator:
Ricky Mohammad Nugraha
Editor:
Petir Garda Bhwana
13 May 2019 11:10 WIB

Soekarno–Hatta Airport into becoming an international hub airport able to compete with neighboring ASEAN countries; Singapore, Malaysia, and Thailand.

The advantage of a hub is that it enables the airport to serve direct international flight routes without having to transit.

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Transportation Minister Budi Karya Sumadi said that airliners bear an important role in helping the government develop Soekarno-Hatta airport as a hub, one of it is by making available direct international flights.

Read: Soekarno-Hatta Airport Opens Free Game Centers for Passengers

“We push for domestic airlines to make available international routes to further attract foreign tourists,” said Budi Karya in Surabaya, Sunday, May 12.

He announced that the government is accelerating the development of the international airport, especially the construction of the airport’s runway 3, which is complete will enable the Soekarno-Hatta airport to construct a new terminal that will highly be dubbed Terminal 4.

Another airport targeted by the government upon becoming an international hub in the future is the Ngurah Rai Airport in Bali.

FRANCISCA CHRISTY ROSANA

 

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Indonesian swift nest products opens stores in China
15th May 2019 20:56

Indonesian swift nest processed products opened two stores in Zhengzhou city, China. (special)

Beijing (ANTARA) - Indonesian swift nest processed products opened two stores earlier this week in Zhengzhou city, China.

The two stores, operated with Chinese importing company Yan Ty Ty, opened in the capital city of Henan Province on Monday (13/5). The company imports swift nests from PT Anugerah Citra Walet Indonesia.

"These swift nest importers have met the standards set by the Chinese authority," Indonesian Ambassador to China Djauhari Oratmangun said, here on Wednesday.

In 2012, Indonesian companies first met the standards set by the Chinese government for exporting swift nests.

In November 2014, six exporters of swift nests received certificates from the China Accreditation Administration and Certification Agency (CNCA).

The export value of swift nests rose from US$22.3 million (some Rp322 billion) in 2015 to US$102.9 million (about Rp1.48 trillion) in 2017.

As of July 2018, there were 21 swift nest processing industries from Indonesia that had received CNCA certificates, with 70.6 percent being imported. Indonesia controlled 67.1 percent of total swift nest imports from three Southeast Asian countries, especially Indonesia, Malaysia, and Thailand.

The swift nests consumption trend in China has shown an increase from 2014 to 2018, with expectations of consuming up to 1,000 tons in 2019.

Indonesia is the largest swift nest producer in the world, while China is the largest swift nest consumer country.

"We are optimistic that Indonesian swift nest products will continue to be one of the leading export products in China," said Ambassador Oratmangun.
Editor: Sri Haryati

COPYRIGHT © ANTARA 2019

 

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Indonesian businesspersons should leverage IC-CEPA: minister
17th May 2019 16:17

Jakarta (ANTARA) - Trade Minister Enggartiasto Lukita has appealed to Indonesian businesspersons to derive optimal benefits from the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) to intensify bilateral trade.

Lukita put forth the request after visiting two importers in Chile, as part of his work visit to the country on May 15-18.

"The IC-CEPA will soon take effect, under which Chilean importers will be able to avail facilities and lower tariff to much as zero percent, The same also applies to Indonesian importers. Hence, this IC-CEPA should be optimally leveraged," the minister noted in a statement here on Friday.

Lukita paid a visit to a furniture importer Area Design and a seaweed processing industry Extractos Naturales Gelymar SA.

A total of 60 percent of Area Design's products were imported from Indonesia.

The company has observed that Indonesian furniture products are of high quality and flexible design to cater to the consumer demand and backed by satisfactory services by the government and business operators.

Nonetheless, the firm yet has insufficient information on Indonesian's furniture producers.

In response to the complaint, Lukita ensured that the government will examine its marketing strategy, as presently, promotion of the furniture industry was done solely through exhibitions.

"We need to adopt a more proactive approach if we are looking to tap Chile's furniture market," he added.

The minister has urged the Indonesian Trade Promotion Center (ITPC) to invite foreign importers to Indonesia, particularly to some furniture producing areas, including Jepara, Boyolali, Cirebon, Solo, and Sukoharjo.

On the other hand, he emphasized that Indonesian businesspersons must partake in promoting their products to nations targeted as new markets.

"Marketing is the key to success in furniture exports. The good quality of Indonesian furniture products should be backed by proactive marketing to increase their appeal and popularity in the international market," he affirmed.



Editor: Rahmad Nasution

COPYRIGHT © ANTARA 2019

Inalum looks for cooperation with China's metal industry

• News Desk
  The Jakarta Post
  

Jakarta / Fri, May 17, 2019 / 04:50 pm

State-Owned Enterprises Minister Rini Soemarno speaks with China Minmetals Corporation chairman Fuping Tang during her visit to Beijing on May 15. (Courtesy of /Inalum)
State mining holding company Indonesia Asahan Aluminium (Inalum) is looking to cooperate with the metal industry in China to accelerate downstream mining operations.

Inalum president director Budi G. Sadikin said on a recent visit to China led by State-Owned Enterprises (SOEs) Minister Rini Soemarno, delegates met chief executive officers from metal companies.

“[We] are looking for opportunities for cooperation, which is in line with our strategic plan to accelerate the implementation of downstream mining operations,” said Budi in a press statement received on Friday.

In three of China’s cities -- Beijing, Inner Mongolia and Shanghai -- the delegates met representatives of several industries: the Metallurgical Corporation of China, Beijing Easpring Material Technology, coal gasification company Dalu Chemicals, cobalt chemical manufacturer Huayou and Contemporary Amperex Technology Battery.

Rini stressed the need to accelerate the implementation of downstream mining operations to add value to mining products.

“The higher the added value of our mining products, the greater the benefits,” Rini said on Thursday.

In December, Inalum through PT Bukit Asam, the holding member, signed a head of agreement on a coal gasification project with state-owned energy holding Pertamina, fertilizer manufacturer PT Pupuk Indonesia and chemical producer PT Chandra Asri Petrochemical.

On her visit, Rini was accompanied by ministry undersecretary for mining, strategic industries and media affairs Fajar Harry Sampurno, undersecretary for financial, survey and consulting businesses Gatot Trihargo and expert staffer Wianda Pusponegoro. (bbn)

 

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PT Inalum constructing alumina refinery plant in West Kalimantan
18th May 2019 18:43

Medan (ANTARA) - PT Indonesia Asahan Alumunium (Inalum) is presently constructing an alumina refinery plant in Mempawah, West Kalimantan, whose project's development was launched by State-owned Enterprises Minister Rini Soemarno on April 4, 2019.

Executive Advisor of PT Inalum Oggy A. Kosasih stated in Medan, North Sumatra, on Saturday that the alumina refining plant, once ready, has the potential to save Inalum's raw material costs reaching US$200 million.

Moreover, it can reduce the exports of raw minerals and lower dependence on imports to source raw materials for producing aluminum.

For its development, Inalum has partnered with PT Antam Tbk through their joint venture subsidiary PT. Bristol Alumina Indonesia (BAI) as a company tasked with constructing the alumina refinery plant.

Kosasih explained that construction of the alumina refining plant offers myriad advantages in the form of being a replacement for alumina imports for which Inalum has been making ongoing efforts to realize domestic production of alumina products and capitalize on the value of PT Antam Tbk's bauxite reserves.

"It is then planned to build an integrated upstream to downstream industry chain for the extraction of alumina from bauxite to produce aluminum and is expected to boost the economy of the local area where alumina refining plants are built," he elaborated.

On the occasion, Kosasih stated that since the change in status to become a state-owned company (BUMN) on December 19, 2013, the company had undergone several adjustments and changes.

With Inalum's status change to being a BUMN, the company is expected to remain committed to developing the country, particularly after being appointed as the holding company of the mining industry.

PT Inalum has been the holding firm of the mining industry since November 27, 2018, and has succeeded in acquiring 51.23 percent of the shares of PT Freeport Indonesia on December 21, 2018.

Thus, Inalum's operating area is restricted not only to Kuala Tanjung and North Sumatra Paritohan but also extends to the remote areas of the nation that cover the PT. Antam Tbk operating area in Pomala, Southeast Sulawesi; East Halmahera, Maluku; Pongkor, West Java; and Sanggau, West Kalimantan.

PT. Bukit Asam Tbk's operating area lies in Tanjung Enim, South Sumatra; while Timah Tbk's operations are in Kundur, Karimun, Singkep, Bangka Belitung, Banjarmasin, and Cilegon; and PT Freeport Indonesia's operations are in Tembagapura, Papua.



Editor: Suharto

COPYRIGHT © ANTARA 2019

 

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Ministry conducts assessment of fatty acid biodiesel storage tanks
20th May 2019 15:08

Jakarta (ANTARA) - Energy and Mineral Resources Ministry is studying to improve infrastructure and lower transport costs for B20, including through evaluating Contractor of Cooperation Contracts' (KKKS') idle oil tanks for storing Fatty Acid Methyl Esther (FAME).

B20 is a blend of 20 percent biodiesel and 80 percent petroleum diesel.

"One of the areas of concern for the government is the infrastructure at B20 mixing points not yet being optimal. The government is also evaluating FAME's transportation costs to several points for mixing that remain quite high," Ministry's Head of the Research and Development Agency Dadan Kusdiana remarked in a statement received by Antara here, Monday.

Kusdiana cited the example of state oil and gas company PT Pertamina's Refinery Unit (RU) that had employed the Ship To Ship (STS) method to lower FAME's transportation costs. However, when the usage of STS was evaluated, the operational costs were still found to be comparatively high.

"The solution that is projected to lower the operational costs of STS is to use oil tanks of the Contractor of Cooperation Contracts that are idle and the distance from RU V Balikpapan (East Kalimantan) is reachable," he pointed out.

The Oil and Gas Research and Development Agency (PPPTMGB LEMIGAS) has conducted a Focus Group Discussion (FGD) on Feasibility Study of FAME Tanks, Infrastructure, Pipes and Mixing at the Mixing Points to gain a broader understanding of which tanks of KKKS can be used to store FAME.

The agency has estimated that eight KKKS tanks can be used to store FAME for RU V Balikpapan, pending further study.

The government is making extensive efforts for the conversion of conventional diesel oil (BO), originating from petroleum, into biodiesel mixed with FAME by 20 percent (B20).

Under the long-term plan, a mix of conventional diesel fuel and FAME Biodiesel made of Crude Palm Oil (CPO) will be reviewed for potential possibilities to become B100.

The government has expedited the development of 100 percent biodiesel, or B100, from CPO to lower fuel imports.

This step is part of the strategies to lower reliance on fossil fuels.

EDITED BY INE

Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2019

 

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Government projects 5.3 to 5.6 percent GDP growth in 2020

• News Desk
  The Jakarta Post
  

Jakarta / Mon, May 20, 2019 / 03:47 pm

Cranes load and unload shipping containers at the Jakarta International Container Terminal (JICT) in Tanjung Priok, North Jakarta. (Antara/Dhemas Reviyanto)
The government on Monday submitted the macroeconomic assumption and basic fiscal policy for the 2020 state budget, which among other things proposed a gross domestic product (GDP) growth projection of 5.3 to 5.6 percent.

The projection is lower than the figure in the 2019 state budget, which is 5.4 to 5.8 percent.

Finance Minister Sri Mulyani Indrawati said the global and domestic condition would still cast a shadow over the country’s economy in 2020.

She said the trade war between the United States and China would become a major threat to global economic growth and would affect the Indonesian economy because it could hamper Indonesian exports.

“By considering all the potentials, opportunities and risks that are expected to come next year, the government proposes the macroeconomic indicators to draft the 2020 state budget,” the minister said as quoted by kontan.co.id in front of House of Representatives members in Jakarta on Monday.

Inflation was set at 2 to 4 percent, the interest rate for three-month treasury bills (SPN) at 5 to 5.6 percent, the rupiah exchange rate at Rp 14,000 to Rp 15,000 per US dollar, the Indonesian Crude Price (ICP) at US$60 to $70 per barrel, oil lifting at 695,000 to 840,000 barrels per day and gas lifting at 1.19 million to 1.3 million barrels of oil equivalent per day (boepd).

Sri Mulyani said the theme of the fiscal policy in the 2020 state budget was enhancing competitiveness through innovation and the improvement of human resources. (bbn)

 

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Indonesia invites Brazil to invest in sugar industry
20th May 2019 22:09

The government has invited Brazil to invest in Indonesia's agriculture sector, especially in the development of the sugar industry

Jakarta (ANTARA) -
The government has invited Brazil to invest in Indonesia's agriculture sector, especially in the development of the sugar industry.

Possible investment in sugar has become one point of discussion between Indonesian Agriculture Minister Amran Sulaiman and his Brazilian counterpart, Tereza Cristina, here on Monday.

Sulaiman said, as the world's largest sugar producer Brazil could invest and transfer its technology, especially in the field of sugar processing.

"We discussed issues about sugar plants. Brazil's Agriculture Minister has said she would be open to sharing experiences in sugar processing and ready to help Indonesia. We know that Brazil is the world's largest sugar producer. They are eager to transfer their knowledge to Indonesia," Sulaiman said.

In addition to the sugar industry, the government has also asked Brazil to open its market for Indonesian agriculture products, such as mangosteen and salak (snake fruit).

"They have opened the chance for us to export six types of strategic commodities.There is no limitation on which commodities could be exported to Brazil," he added.

During the meeting, the two ministers agreed that Brazil would accept exports of Indonesian commodities, such as snake fruit, swallow bird's nests, and pineapple, along with other commodities.

"The most important thing is that our agricultural products will be accepted. Up until now, Indonesian exports to Brazil had touched US$0.3 billion per year, most of it contributed by palm oil," he said.

Meanwhile, the Brazilian Agriculture Minister has asked Indonesia to open its market to the country's beef exports.

Responding to the request, Sulaiman said that the government would have to consider the issue of food security before it decided to import Brazilian beef.

(INE)

Editor: Eliswan Azly

COPYRIGHT © ANTARA 2019

 

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Tax to GDP ratio targeted at 11.8 to 12.4 percent in 2020

• News Desk
  The Jakarta Post
  

Jakarta / Tue, May 21, 2019 / 08:11 am

The government targets a tax to GDP ratio of 11.8 to 12.4 percent in 2020. (Shutterstock/VectorHot)
The government targets a tax to gross domestic product (GDP) ratio of 11.8 to 12.4 percent in 2020, compared to this year's target of 12.2 percent.

In 2018, the tax to GDP ratio was 11.5 percent.

The figure was proposed by Finance Minister Sri Mulyani Indrawati to the House of Representatives in the plenary session on Monday when the minister revealed the macroeconomic indicators and basic fiscal policy for the 2020 state budget.

She said that among the efforts to boost the tax to GDP ratio included taxation reform to increase tax revenue and the improvement in competitiveness of both exports and investment through fiscal incentives to balance the external pressure.

“All those policies are expected to be able to increase the tax to GDP ratio in 2020,” Sri Mulyani said as quoted by kompas.com, adding that the wide range of 11.8 to 12.4 percent was a realistic target.

She said the floor target of 11.8 percent was similar to the current taxation performance.

“We hope we will be able to show positive growth in our tax revenue,” Sri Mulyani said, adding that there were several factors that were considered before deciding the tax ratio, including the trade balance in April, which was still in deficit at US$2.5 billion and the revision in customs policy

She said the government would also still consider a number of risks that may emerge in the second quarter of 2019 before the tax to GDP ratio projection was included in the financial note of the 2019 state budget. (bbn)

 

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S & P Increases Indonesia's Debt Rating to BBB
MARKET - Herdaru Purnomo, CNBC Indonesia

31 May 2019 13:47

Jakarta, CNBC Indonesia - Standard and Poor's (S & P) rating agency raised Indonesia's debt rating above the investment grade level today, Friday (05/31/2019).

"S & P raised the Indonesian government's rating to BBB on the grounds of the prospect of strong growth and prudent fiscal policy," the S & P wrote in a statement.

On May 31, 2018, S & P had affirmed Indonesia's ranking remained at the investment grade level at BBB-.


This is good news for Indonesia.

BREAKING NEWS

https://www.cnbcindonesia.com/marke...ap-sp-naikkan-rating-utang-indonesia-jadi-bbb

 

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RI, Chile exchange instrument of ratification of partnership agreement
11th Jun 2019 16:17

Jakarta (ANTARA) - Indonesia's Trade Minister Enggartiasto Lukita and Chile's Vice Minister of Trade Rodrigo Yáñez Benítez exchanged the Instrument of Ratification (IoR) of the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA).

"The implementation of the IC-CEPA is a historic moment. Apart from being the first trade agreement with the South American country, IC-CEPA will also open the door for Indonesian export products in the South American region," Trade Minister Lukita remarked here on Tuesday.

The trade minister will make Chile a connecting nation for Indonesian export products in South America owing to its strategic location.

The IoR exchange is a crucial legal procedure before the implementation of IC-CEPA. In line with the mandate decided in the agreement, IC-CEPA will take effect 60 days after the exchange of the IoR, specifically on August 10, 2019.

Before the IoR exchange event, Lukita and Benítez had met to deliberate on the most effective and optimal utilization of IC-CEPA.

"I convey to Deputy Minister Rodrigo the significance of this agreement for benefiting businesspersons in both countries. Hence, trade will increase between both nations. To this end, we invite the Chilean government to jointly publicize the benefits and opportunities of IC-CEPA," the trade minister emphasized.

Moreover, Lukita has suggested to Chile to organize a similar series of activities to spread the word around in Chile by inviting the Indonesian Embassy in Santiago.

The two governments had inked the IC-CEPA on December 14, 2017, in Santiago, Chile. Through IC-CEPA, the two countries will be able to enjoy preference rates to export to their respective markets.

After almost 18 months of ratification in each country, on June 11, 2019, the process was officially completed by both nations.

This process is carried out in Indonesia by issuing Presidential Regulation No. 11 of 2019 on the Ratification of the Comprehensive Economic Partnership Agreement between the Government of the Republic of Indonesia and the Government of the Republic of Chile.

Through IC-CEPA, 89.6 percent of Chile's tariff posts will be removed for Indonesian products entering the Chilean market, while Indonesia will eliminate 86.1 percent of its tariff posts for products imported from Chile.

Indonesia's main products to receive preference comprise palm oil and its derivatives, paper and pulp, fisheries, food and beverage, automotive products, footwear, furniture, jewelry, sorbitol, and textile products.

On the basis of the agreement, once the IC-CEPA is implemented, both nations will continue negotiations to the subsequent stage of trade in the service sector and investment.

"After the goods tariff agreement, the next stage is negotiations in the services and investment fields, as IC-CEPA is done gradually. Further discussions through the IC-CEPA Joint Committee will be held for the deadline," the trade minister concluded.

Editor: Bambang Purwanto

COPYRIGHT © ANTARA 2019

 

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TransNusa commences int'l flight operations on Kupang-Dili route
14th Jun 2019 14:13

TransNusa airlines began operating international flights from Kupang, the capital city of East Nusa Tenggara Province, to Dili, the capital city of Timor Leste.

Kupang (ANTARA) - TransNusa airlines began operating international flights from Kupang, the capital city of East Nusa Tenggara Province, to Dili, the capital city of Timor Leste.

"Thank God, on Friday, June 14, 2019, TransNusa Airlines began operating on the Kupang-Dili international route," Kupang-Dili route's General Manager at the El Tari Kupang Airport, Barata Singgih Riwahono, noted in a written statement received by Antara here on Friday.

Riwahono confirmed that his company had held an event to inaugurate the operations of the special flight for which the attendees comprised TransNusa airline owner Leo Budiman and TransNusa President Director Risnandi Saepurahman, who lauded the commencement of international flight services.

Riwahono expounded that ATR 72-600 type aircraft, with a capacity to accommodate close to 78 people, began operations on Friday, June 14, 2019, at 8:55 local time from the El Tari Kupang Airport to Nicolau Lobato Airport, Dili.

Flight services, connecting two different cities, will be available twice a week on Monday and Friday.

Riwahono remarked that as the airport manager, he expressed gratitude to TransNusa Air Service for jointly strengthening the industry when its conditions were declining again.

He pointed to the downward trend in the use of flight services also observed during the 2019 Eid al-Fitr holiday period.

"Hence, the commencement of flight services on this international route comes as a breath of fresh air for the aviation industry to restore the passion," he affirmed.

Riwahono reiterated that his side had consistently striven to invite airlines to expand operations by operating on new routes, so that the province's transportation services would become more adequate to support various development sectors.

EDITED BY INE


Editor: Eliswan Azly

COPYRIGHT © ANTARA 2019

 

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Ferronickel smelter in Sulawesi established
16th Jun 2019 15:20

Energy and Mineral Resources Deputy Minister Arcandra Tahar.

Jakarta (ANTARA) - The groundbreaking of PT Ceria Nugraha Indotama (CNI) ferronickel smelter in Wolo Sub-district, Kolaka District, Southeast Sulawesi, was conducted by Energy and Mineral Resources Deputy Minister Arcandra Tahar and Administrative and Bureaucratic Reforms Minister Syafruddin.

PT CNI smelter has the capacity of processing nickel with 5 million tons of ore and 230,000 tons of ferronickel output with 22 percent of nickel content - 24 percent per year, according to data available at the Energy and Mineral Resources Ministry received by Antara here on Sunday.

The smelter was built using rotary kiln electric furnace (RKEF) technology. Electricity requirements for smelter operations are estimated to reach 350 MW.

In his remarks Arcandra stated that natural resources play an important role in supporting national development. Even so, the principle to utilize natural resources must be based on Article 33 of the 1945 Constitution, which is controlled by the state and as much as possible for the prosperity of the people.

Interpretation of being controlled by the state, Arcandra said, is that natural resources are managed by Indonesians using domestic-developed technology and domestic funding.

"In accordance with the mandate of the law, we want this nickel to be processed (domestically) and to extend the processing chain so that it can produce added value," Arcandra noted.

The construction of a purification facility or smelter is an implementation of the policy of increasing mineral added value as mandated in Law No. 4 of 2009 concerning Mineral and Coal Mining.

The groundbreaking smelter is also a commitment of the government to further encouraging mining businesses in support of the downstreaming acceleration in the mining sector.

"This is what we want (the construction of a smelter) so that it can produce value-added effects that are greater than just selling raw materials," Arcandra said.

The smelter is targeted to start operating by the end of 2021.

"The construction of the main infrastructure and support for the ferronickel smelter is targeted for completion in December 2021 with a total investment value of Rp14.4 trillion," said PT CNI President Director Derian Sakmiwata.

The construction of this smelter will continue to be overseen by the Energy and Mineral Resources Ministry by monitoring development progress regularly every six months and also the availability of reserves of nickel ore for the operation of refining facilities.

With the construction of refining facilities in Southeast Sulawesi province, it is expected to be a driving force for the regional economy, especially in Kolaka District and its surroundings.
Editor: Bambang Purwanto

COPYRIGHT © ANTARA 2019

 

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Packaging company to sell 32 percent of shares in IPO

• News Desk
  The Jakarta Post
  

JAKARTA / Wed, June 19, 2019 / 02:17 pm

A woman operates an automated scanning and labeling system at the Amazon Fulfillment center in Kent, Washington, DC. Indonesian cardboard packaging company PT Satya Mitra Kemas Lestari Tbk (SKL) will sell 32 percent of its shares to the public in July. (-/Lindsey Wasson)
Cardboard packaging company PT Satya Mitra Kemas Lestari Tbk (SKL) will float its shares on the Indonesian stock exchange to raise funds from the public to strengthen its capital structure and acquire new packaging machines.

During the initial public offering (IPO) to be held before the company’s shares are listed on the Indonesian Stock Exchange (IDX) on July 11, Satya Mitra will sell 1.3 billion new shares, which account for 32 percent of the company’s enlarged capital.

Marketing and operational director Herryanto S. Hidayat said on Tuesday that the new shares would be sold at a price between Rp 150 (1.1 US cents) and Rp 200 a piece, depending on market demand.

Oktavianus Budianto, president director of PT Kresna Investment, the lead underwriter of the IPO, said SKL would also issue 260 million warrants as a sweetener for the share offering.

Herryanto said in a public presentation that his company would use 40 percent of the proceeds as working capital, 30 percent for refinancing debt and the other 30 percent for capital expenditure.

“We estimate that we will be able pay 5 percent of our total debt with 30 percent of the proceeds,” he said. “We will allocate another 30 percent to purchasing new machines in 2019 and 2020 and acquiring a plot of land in Bekasi, West Java, or in another town in Central Java.”

Oktavianus said SKL would distribute 20 percent of its annual profit as dividends.

According to SKL, its net profit increased by about 35 percent to Rp 45 billion ($3.15 million) in 2018 from Rp 33 billion in 2017, while total revenue increased to Rp2.18 trillion from Rp 1.67 trillion over the same period.

Oktavianus said the book-building of the IPO was scheduled for June 13-20, the offering period for on July 1-4 and the share allotment for July 8, before the listing of the shares on July 11.

Founded in 2001, SKL, the third-largest cardboard packaging company in Greater Jakarta, currently produces corrugated carboard boxes, rigid boxes, paper bags and offset and pre-printing packaging for various companies like Unilever, Adidas, Indofood, Mayora, Samsung and Nestle Indonesia.

Herryanto said he expected that, after the IPO, his company would be able to increase its revenue to Rp 2.31 trillion this year and Rp 2.45 trillion next year. Net profit is projected to increase to Rp 65 billion this year and Rp 80 billion. (nal)