Daily Business Briefing – Sept. 26

JAKARTA (TheInsiderStories) – Good morning. We offer you several relevant news items that might help your business decisions today :

Jokowi Officiates Bawean-Salatiga Toll Road Opening

Bawean-Salatiga toll road was officially launched by President Joko Widodo on Monday (25/9). This is a section of the Trans-Java toll road that connects Semarang, capital city of Central Java and Solo via Salatiga. This toll road segment is 75.7 kilometers in length, and is directly connected with Semarang Toll Road at the Tembalang Interchange.

Chandra Asri Books US$174.2 million profit in first semester 

Local petrochemical company PT Chandra Asri Petrochemical Tbk (IDX:CAP) booked US$174.2 million in net profit for the first half (H1) of this year. The increase in net profit was mostly contributed by a 1,248 KT increase in sales volume, compared to 1,036 KT in H1 2016, coupled with a continuous healthy product margin, partially offset by increases in raw material costs, notably Naphtha, up 24 percent to $486 / ton.

Government to take out a US$13.12 Billion Bond next year

The House of Representatives gave its approval to the government for a of 2.19 percent budget deficit in the draft 2018 state budget of Revenues and Expenditures. With this agreement, the government can draw down Rp 414 trillion (US$13.12 billion) from the withdrawal of Government Securities, loan of Rp399.2 trillion next year and a net loan of Rp15.3 trillion.

Five local banks to disburse Rp19 trillion for LRT project in November

Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan has targeted the disbursement of funds from five local banks for the Jakarta – Bogor – Depok – Bekasi light rail project (LRT) in November. According to him, the loan from five banks will amount to around Rp19 trillion.

Tax Allowance for labor-oriented industry

Indonesian Industry Minister Airlangga Hartarto has proposed a tax allowance for labor-oriented industries; besides creating job opportunities, he noted how fiscal concessions could become a sweet incentive to lure investments into strategic industries.
Indonesia has 41 gigawatts of ocean thermal energy potential

The Ministry of Energy and Mineral Resources noted that Indonesia has the greatest potential of ocean thermal energy conversion (OTEC) in the world. This potential is spread out over several locations, such as the west coast of Sumatra, southern Java, Sulawesi, North Maluku, Bali and East Nusa Tenggara. Head of the Center for Research and Development of Marine Geology Ediar Usman said OTEC is a renewable energy source derived from the difference in sea temperature that is easily found in tropical marine waters. Looking at the position of Indonesia, he mentioned the potential that can be developed to reach 41 gigawatts.

Trump plans cut tax rate for corporations 

US President Donald Trump and Republican leaders plan to release a tax framework this week that would dramatically cut taxes for corporations and the wealthy, provide a measure of middle-class tax relief and punish households in Democratic-leaning states like New York and New Jersey. The emerging framework includes a proposal to cut the corporate tax rate to 20 percent from 35 percent – a costly move in revenue terms that Trump and Republicans say is necessary to create job growth. But its provisions for individual taxes may hit closer to home for many Americans. (Bloomberg)

Abe Calls Snap Election in Japan, Readies $18 Billion Package

Japan’s Prime Minister Shinzo Abe said he’ll dissolve the lower House of Parliament on Sept. 28 for a general election as he announces an US$18 billion economic package. At a press conference Monday, Abe unveiled a package of economic measures including higher spending on education. He said he intended to pay for these with funds from a consumption tax increase originally intended to rein in the nation’s swollen debt. He also spoke about the need to keep up pressure on North Korea after Kim Jong Un’s regime fired two missiles over Japan in recent weeks. (Bloomberg)