JAKARTA (TheInsiderStories) – Good Morning. We provide several important news items that might help your business decisions today, as follows:
Gov’t Decision on Designated Stickers for Online Taxi This Week
Transportation Minister Budi Karya Sumadi said that the regulation on designated stickers for online taxis will be discussed this week. In a meeting with ride-hailing companies, it was agreed that stickers will be displayed at the front and rear of vehicles. The Transportation Ministry will discuss the issue with the Communication and Informatics Ministry regarding sanctions on non-compliant online taxi operators.
Trump Meets Xi in Beijing
President Donald Trump and President Xi Jinping have met in Beijing, China to discusses economic issues of mutual interest. Xi has mapped out China’s manufacturing might up to 2025 through a upgrade of the technology chain to high value-add products, looking to build a ‘great modern socialist country’ so China is ‘a global leader’ by 2050. Meanwhile, Trump wants to cut his nation’s trade deficit with China, which last year totaled US$327 billion according to IMF data. China’s 2025 blueprint shows it’s aware of the dangers. It calls for breakthroughs in 10 key sectors such as robotics and medical devices. Meantime, the Belt and Road Initiative – expected to create more than $1 trillion of investment in rail, highways and ports linking Europe and Asia – would see unskilled jobs shift to cheaper labor forces offshore while companies retain strong links back to China.
Trump Leaves Japan Empty-handed
A two-day meeting between President Donald Trump and Japan’s Shinzo Abe has failed to result in any concrete action to address Trump’s main complaint: fixing what he sees as an unfair trade relationship with Japan. For Trump, the relationship with Abe is a way to show he can work with his peers around the globe. The two men did however agree on a hard-line approach to North Korea. The only major investment cited a US$1 billion project in Tennessee from auto parts maker Denso Corp. Trump all but pleaded with Japanese carmakers to build more factories in the U.S. In responding to this, Abe’s deflections showed Trump that it won’t be that easy to narrow the $69 billion trade deficit with Japan, driven largely by U.S. imports of cars and electronics.
Trada Maritim: US$444.44 Million Rights Issue
PT Trada Maritim Tbk (IDX: TRAM) plans to raise a total of Rp6 trillion (US$444.44 million from a rights issue, in order to acquire PT SMR Utama Tbk (IDX: SMRU). The company intends to issue 40 billion new shares, equivalent to 80.43 per cent of the issued and fully paid-in capital of the Company. TRAM will ask for approval from shareholders in an EGM to be held on Nov. 7, 2017. In addition, the Company will also issue up to 3.4 billion warrants to accompany the new shares.
Australian CIMIC Wins US$300 Million contract from KPC
Australian construction firm CIMIC Group has won a US$300 million contract with Indonesian coal miner PT Kaltim Prima Coal (KPC), a unit of PT Bumi Resources Tbk (IDX: BUMI) to extend its Kalimantan mine operations a further four years. The contract will see coal production at the Melawan pit (Sangatta coal mine) increase by 12 million tons over four years, until Dec. 2021.