JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:
Trade ministers of 16 RCEP countries, including India and China, are expected to meet in Manila in mid-November to take stock of negotiations for the proposed mega agreement, an official said. The Regional Comprehensive Economic Partnership (RCEP) is a trade pact among 16 countries that aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights. In the recently-concluded 20th round of talks in South Korea, member countries deliberated on the stalled issues. The members have yet to finalise the maximum number of tariff lines or products on which countries would eliminate duties. The bloc comprises 10 Asean members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners — India, China, Japan, South Korea, Australia and New Zealand.
Japan’s industrial production falls in September
Japan’s IIP fell by 1.1% in September following a 2.0% month-on month (m/m) rise in the previous month, but the figure for Jul-Sep rose q/q for a sixth consecutive quarter. Manufacturers’ shipments also declined by 2.6% m/m while inventories held at the August level, which led to a 1.6% m/m rise for the inventory ratio. IHS sees Japan’s IIP is likely to remain volatile, but ongoing demand for electric parts and devices and general-purpose, production and business oriented machinery is likely to drive an uptrend in the fourth quarter. Industry anticipates production to rise 4.9% m/m in October before a contraction of 0.9% m/m in November. That said, falsified data issues at a steelmaker and false inspection problems at automaker could weigh on near-term industrial production.
State-owned gas produce PT Perusahaan Gas Negara (IDX: PGAS) booked US$2.16 billion revenues as per September 2017 (9M). The figure represents a small increase from last year $2.15 billion. In 9M, the company’s gas pipe totaling at 7,450 km or accounting for 80 percent of the national downstream gas pipeline. Until end of September, PGAS booked $1,793.5 million from gas sales and $316.5 from oil and gas sales. The company’s operating profit as of September amounted to $267.7 million. Meanwhile, its net profit reached US$97.9 million with an EBITDA of $632 million. In 9M, PGAS has distributed 1,502 million cubic feet per day (MMscfd) of natural gas.
Adaro’s Profit Jumps 76% to US$495 Million in 9M
Publicly listed coal miner PT Adaro Energy Tbk (IDX: ADRO) net profit jumps 76 per cent from US$281 million to $495 millin in 9 months (9M) of the year. Revenue, Average Selling Price and Production Revenue increased by 37 per cent compared to the same period last year to $2,439 million due to a 42 percent increase in ASP. Its coal mining and trading division unit generated 94 the company’s revenue said Adaro in a statement on Nov. 1. Adaro produced 39.36 Mt and sold 39.44 Mt of coal in 9M17.