JAKARTA (TheInsiderStories) – Good Morning. We provide several important news items that might help your business decisions today, as follows:
Indonesian Car Sales Rose 2.5% in October
Indonesia’s car sales in October rose 2.5 per cent to 94,461 units compared with a year ago, the Indonesian automotive industry Gaikindo said on Thursday. The sales grew 7.7 percent compared with the previous month, when 87,645 cars were sold.
Indonesia’s Motorcycle Rose 1.46% in 10 Months
The Indonesia Motorcycle Industry Association (AISI) reports that motorcycle sales only rose by 1.46 per cent to 579,552 units in October 2017 compared to the same month last year of 571,201 units. In October only, 4.91 million motorcycles were sold, representing a minor decrease of 0.05 percent compared to the same period last year of 4.2 million units. At the turn of the year, AISI was aiming for 6.2 million motorcycle sales or equal to last year’s target. A few months later, manufacturers revised the figure to 5.9 million units, before revising it once again to 5.75 million units.
10 SOE’s Subsidiaries To Launch IPO in 2018
Ten subsidiaries of state-owned firms will conduct initial public offerings (IPO) in 2018, said Aloysius Kiik Ro, deputy minister of business restructuring and development, said on Nov. 9. He added, four companies has conducted IPO this year namely PT Garuda Maintenance Facility Aero Asia (IDX: GMFI), PT PP Presisi Tbk, PT Wika Gedung, and PT Jasa Armada Indonesia.
Japan’s Private Machinery Orders Drop Sharply in September
Japan’s private machinery orders excluding volatiles — a leading indicator of private capital expenditure — fell 8.1% month on month (m/m) in September, following two consecutive months of increases. The weaker-than-expected figures reflected a 5.1% decline in orders from the manufacturing sector, following a 16.1% rise in the previous month, and an 11.1% drop in orders from the non-manufacturing sector, following four consecutive months of increases. The weakness in orders from manufacturers largely reflects declines following surges in orders from general-purpose and production machinery, shipbuilding, and ceramic, stone and clay products in the previous month.
This offset continued increases in orders from non-ferrous materials, electrical machinery and some other industry groupings. Declines after a solid increase in orders from finance and insurance and miscellaneous non-manufacturing, as well as a continued decline in orders from transportation and postal activities were major contributors to the sluggishness in orders from non-manufacturers, offsetting continued increases in orders from telecommunications and good leasing. A 4.7% quarter to quarter (q/q) rise in private machinery orders excluding volatiles in the third quarter signals increases in fixed investment. However, companies remain cautious about increasing fixed investment as industries anticipate a 3.5% q/q contraction in orders of private orders (excluding volatiles) in the 4Q.
Jasa Marga Considers Issuing Islamic Bonds
State-owned toll road operator PT Jasa Marga Tbk (IDX: JSMR) is exploring the possibility of issuing Islamic bonds as an alternative funding source. Jasa Marga plans to issue Rp19 trillion bonds in 2017. Head of Corporate Finance Eka Setya Adrianto said at the Indonesia Stock Exchange, Jasa Marga now has numerous ways to get funding. The company also plans to issue rupiah-denominated bonds that are marketed in global markets, also called the Komodo Bond. JSMR plans to list the bond at the London Stock Exchange. To date, Jasa Marga has been using a number of instruments to obtain funding including conventional bonds, project bonds to asset securitization.
Japan’s Fujita Kanko Launches Apartment in Bekasi
Japanese hotelier Fujita Kanko Inc. announced that the company will launch its first serviced apartment in Cikarang, Bekasi, West Java. Construction is expected to start soon, with a scheduled opening in the fall of 2019. Fujita Kanko’s Cikarang serviced apartment, yet to be branded, is expected to have 214 rooms in three unit types for both single and family residents, accommodating both business travelers and expats. The facilities will include a restaurant, gym, club lounge and Japanese-style spa with outdoor bath. Cikarang, approximately 22 miles (35 km) east of Jakarta’s city center, is known for its up and coming industrial developments, including Kota Jababeka, the largest industrial park in Southeast Asia. The area is attracting a growing number of international companies setting up their Indonesian offices/facilities. (*)