JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:
Today’s JCI Range: 5,869 – 5,968
JCI is still in consolidation and seen moving within a range of 5896-5968. There is plenty enough room for JCI to improve, particularly as a strong economic fundamental as well as an expectation of capital inflow, following the release of global economic data this week. The news agenda this week is almost certainly going to be dominated by US GDP data (due on Friday), as well as by data from the European Central Bank and the Bank of Canada.
ITDC Confirms US$920 Million Investment for Mandalika
The Indonesia Tourism Development Corporate (ITDC) has announced that an investment of at least US$920m has been secured for the development of Mandalika in West Nusa Tenggara as a prime tourist destination. Investors include Royal Tulip Hotel (a South Korean firm), Paramount Hotel (American), X2 Hotel (a domestic Indonesian investor), and Club Med Hotel (by ITDC itself) as well as ‘Vinci Grand Project’, a French state-owned enterprise, to develop a Street Race Circuit Cluster. ITDC is targeting completion of basic infrastructure project, such as a 17-kilometer main road, water distribution network and PLN electrical grid, by 2018, with the provision of 1,200 hotel rooms by 2019.
BI sees 5.3-5.4% Growth in 4Q
Bank Indonesia (BI) estimates that economic growth in the fourth quarter (Q4) of 2017 will reach 5.3-5.4 per cent, Senior Deputy Governor of BI Mirza Adityaswara said on Friday. Adityaswara expects the economy will be driven by improvement in the retail sector and infrastructure development. For 3Q 2017, BI forecasts economic growth in the range of 5.1-5.2 per cent, or better than 5.01 per cent overall in the second quarter of 2017.
PLN to Complete 35 GW Power Purchase Agreement by Next Year
State-owned electricity company PT Perusahaan Listrik Negara (PLN) expects to conclude a power purchase agreement for all projects contributing to the ambitious 35-Gigawatt plan by next year. The Company has signed power deals for projects with a combined capacity of 31 GW PPA thus far, and expects to build 20,729 kilometers of transmission circuit, or nearly 44 per cent of a total of 46,831 kilometers planned, by 2019.
Adaro Expects Stable Prices in 2018
Coal miner company Adaro Energy expects coal prices to be relatively stable through 2018, amid quite a strong domestic and Southeast Asian coal demand outlook. The company, which is targeting production of 52 million to 54 million metric tons, does not expect any sudden price fluctuations in 2018, during which time coal production in Indonesia is expected to increase 5 per cent, up from an estimated 440 million metric tons this year. Domestic consumption is expected to reach 101 million tons next year. Spot cargo prices for thermal coal out of Australia’s Newcastle port (which acts as an Asian benchmark0, have been largely trading between $90 and $100 since July.
US Senate Clears Hurdles for Trump Tax Plan
President Donald Trump’s plan to overhaul the US tax system marked substantial progress after the Senate approved a budget measure that will allow Republicans to pursue a tax-cut package without Democratic party support. However, Republicans – who control both the Senate and House of Representatives – have yet to produce a tax reform bill that is anticipated to rocket the US budget deficit by US$1.5 trillion over the next 10 years.