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    • SingCham is the premier business chamber for Singaporean interests in Indonesia. Founded in 2006, SingCham aims to promote the business interests of individuals or companies operating in Singapore and/or Indonesia. SingCham provides networking activities, events, and useful information for its members, and acts as the liaison between the Singaporean business community and the Singapore and Indonesian governments. With a focus on fostering better networking and feedback among members, SingCham is committed to providing valuable resources and insights to help members connect, learn, and grow their businesses in Indonesia. Join SingCham today and become part of a thriving business community that benefits from exclusive resources, networking opportunities, and business insights.

    16Aug, 2018
    Indonesian coal production at 37.11 percent of full-year target

    Indonesian coal production was recorded at 180 million tons on Wednesday, or 37.11 percent of the government’s 485 million target this year.

    However, President Joko “Jokowi” Widodo has said he wanted Indonesia to further increase coal production to 585 million by year-end as part of efforts to narrow the current-account deficit (CAD).

    “Yesterday [Tuesday], during the limited Cabinet meeting, the President said that we needed foreign exchange. He raised the possibility of increasing coal production by 100 million tons,”  Energy and Mineral Resources Ministry spokesman Agung Pribadi said on Wednesday.

    He claimed that one coal miner was ready to increase its production by 25 million tons worth around US$1.5 billion.

    Speaking about the country’s meager coal production in the first half 2018, Agung claimed some companies had not reported their output and expressed confidence that coal miners would be able to meet the new production target.

    (read more: The Jakarta Post)

    13Aug, 2018
    Energy investment in Indonesia less than half of target

    In the first half of this year, Indonesia booked US$9.48 billion in investment in the energy and mineral resources sector, only 25 percent of the full-year target of $37.2 billion.

    The oil and gas sector contributed the most to the total investment at $5.11 billion, followed by electricity at $2.83 billion.

    Meanwhile, the mining and renewable energy sectors recorded a respective $790 million and $750 million in the first half.

    Responding to the results, the Energy and Mineral Resources Ministry said in a presentation made available to The Jakarta Post that global energy prices had become one of the main challenges in the past three years.

    “The focus ahead is to continue with efforts that simplify regulations, strengthen investment facilities and speed up the process of making strategic decisions,” the ministry said in the presentation.

    Energy and Mineral Resources Ministry spokesman Agung Pribadi told the press last Friday that investment in oil and gas would jump significantly in the second half, as was typical.

    (source: The Jakarta Post)

    23Jul, 2018
    The weakness of rupiah brings profit for the plantation companies to textiles

    When the rupiah exchange rate continues to fall as it is today, the Composite Stock Price Index (CSPI) seems difficult to return to 6,000 points.

    However, it does not mean that market participants can not invest in the stock market when rupiah is declined. Because, some export-oriented issuers are cheerful because the weakening of the rupiah against the US dollar (US) has the opportunity to boost the company’s financial performance.

    Securities analysts agree that the appreciation of the US dollar against the rupiah provides a positive sentiment for listed companies based on plantations, mining and textiles.

    If most commodities are sold on an export basis, the majority of the company’s revenues will be in US dollars. That way, the company will get a bigger profit when converting its revenue into the rupiah exchange rate.

    “The performance of the first semester of 2018 is predicted to rise,” continued Lucky.

    Looking at both companies’ financial performance in the first quarter of 2018, Astra Agro Lestari and the London Sumatra Indonesia Plantation Company posted a decrease in net income and net income.

    Astra Agro Lestari, for example, posted a 55.03 percent net profit to Rp355.45 billion from Rp790.45 billion in the first quarter of 2017. This is because the company’s revenue also fell 1.11 percent from Rp4.49 trillion to Rp4.44 trillion.

    Meanwhile, net income of London Sumatra Indonesia Plantation Company fell 64.6 percent to only Rp115.99 billion from the previous Rp327.68 billion. This decline occurred because the company’s revenue slumped to Rp868, 33 billion, while in the first quarter of 2017 reached Rp1, 46 trillion.

    “With rupiah conditions like this target stock price (AALI and LSIP) could rise 7 percent from closing Friday (20/7) yesterday,” continued Lucky.

    At the end of last week, Astra Agro Lestari’s share price ended at Rp10.650 per share or closed stagnant. Then, the London Sumatra Plantation Company of Indonesia rose 2.06 percent to Rp990 per share.

    In addition, mining shares that will benefit from the weakening of the rupiah, such as PT Bukit Asam Tbk (PTBA), PT Aneka Tambang Tbk (ANTM) and PT Adaro Energy Tbk (ADRO).

    “When the US dollar strengthens it is good for mining companies, the majority of exporters, commodity prices are also okay,” said Lucky.

    Lucky explained that the price of Comex gold futures rose 0.64 percent last weekend to US $ 1,231.9 per troy ounce. According to him, the price of gold will still strengthen up to the level of US $ 1,255.00 per troy ounce.

    “The price of coal is also still around US $ 100 per metric ton,” added Lucky.

    Furthermore, Binaartha Sekuritas Muhammad Nafan Aji Gusta Utama analysts call PT Sri Rejeki Isman Tbk (SRIL) or Sritex will also enjoy the benefits of rupiah depreciation.

    Understandably, these textile-based issuers also penetrated overseas markets as the target consumers. Referring to the financial statements of issuers in the first quarter of 2018, the company markets its products to Asia, Europe, USA, Latin America, United Arab Emirates, Africa and Australia.

    Total export sales alone in the first three months of this year amounted to US $ 145.37 million, while domestic sales only US $ 122.46 million. As a result, total sales in the first quarter of 2018 amounted to US $ 267.83 million.

    “The performance of Sri Rejeki Isman also consistently increased, maybe this year could be doubled up,” said Nafan.

    In this case, Sri Rejeki Isman recorded a 49.57 percent sales increase in the first quarter of 2018 from the first quarter of 2017 position of US $ 179.06 million.

    Not surprisingly, the company’s net profit was boosted 84.63 percent from US $ 22.39 million to US $ 41.34 million.

    Meanwhile, Sri Rejeki Isman’s share price at the end of last week rose 1.74 percent to Rp350 per share. Shares of Sri Rejeki Isman observed continued uphill since Thursday (19/7) yesterday, at which time the stock price closed at the level of Rp334 per share.

    (Source: CNN Indonesia)

    20Jul, 2018
    The government lies to the public about Freeport shares divestment: Fahri Hamzah

    House of Representatives Vice Chairman Fahri Hamzah said the government has the potential to deceive the public because it claims to have controlled 51 percent of PT Freeport Indonesia shares.

    According to him, the government’s move to divest PT Freeport Indonesia is still a preliminary agreement.

    “It could be a public lie,” he said at the Parliament Building, Jakarta, Friday (10/7).

    Fahri said the government’s lies are also linked to PT Freeport Indonesia’s divestment fund. He said the government does not have the budget to buy the shares.

    12Jul, 2018
    Indonesia now controls 51 percent of Freeport shares

    State-owned mining holding company Inalum now owns a 51 percent from the previous figure of 9.36 share of gold and copper miner PT Freeport Indonesia after years of “tough” negotiations, President Joko “Jokowi” Widodo announced on Thursday.

    Previously, US mining giant Freeport McMoRan Inc. (FCX), a parent company of PT Freeport Indonesia, owned 90.64 percent of PT Freeport Indonesia’s shares. Jokowi said the completion of Freeport’s divestment was a breakthrough for Indonesia, because the country could now enjoy more taxes, royalty and dividends from the company