JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
Bank of Japan Keeps Monetary Policy on Hold
Japan’s central bank voted to hold monetary policy steady on Thursday as it forecast the country’s economy will continue its “moderate expansion”. The Bank of Japan said overnight interest rates will remain steady at minus 0.1 per cent. The bank maintained its yield target for 10-year Japanese government bonds at around zero percent and said it will continue to purchase JGBs at “more or less the current pace” of ¥80tn a year. The BoJ said it expects domestic demand to grow and exports to “continue their moderate increasing trend on the bank of the growth in overseas economies”. It forecast the consumer price index will “continue on an uptrend and increase toward 2 per cent”.
Court Rejects RAPP’s Plea to Revoke Gov’t Reprimand Letter
The Jakarta State Administrative Court, or PTUN Jakarta, on Thursday (21/12) rejected a plea submitted by Riau Andalan Pulp and Paper, or RAPP, requesting the court revoke a reprimand letter issued by the Ministry of Environment and Forestry in October, which invalidated the company’s current 10-year business plan regarding peatland protection. The ministry in October issued a reprimand letter that invalidated RAPP’s current 10-year plan due to the company’s unwillingness to comply with new government regulations on peatland protection. However, the company insisted its long-term business plan should remain valid as it was approved by the previous administration.
Hyundai Expresses Interest in Jakarta LRT Project
Hyundai Rotem, a rolling stock manufacturer and unit of South Korean conglomerate Hyundai Motor Group, has expressed interest in supplying train wagons for the upcoming Greater Jakarta Light Rail Transit project, Luhut Binsar Panjaitan, the coordinating minister for maritime affairs, said on Thursday (21/12).
Kim Seung-tack, Hyundai Rotem’s chief executive, said the company is able to comply with a government requirement to set up a local factory and use 51 percent local content in the wagon’s production. Kim said that Hyundai Rotem is prepared to complete the LRT development in 15-16 months provided that 30 percent of the first development process takes place in Busan, while the remaining 70 percent would be completed in Indonesia.
Krakatau Steel’s Projects Worth US$1.28B to Operate in 2019
PT Krakatau Steel (Persero) Tbk (KRAS) will operate three projects worth US$ 1.28 billion in the next two years. The projects are the Hot Strip Mill (HSM), the Blast Furnace, and the PLTU 150 MW, meanwhile, two of three projects had started in the third quarter of 2017. Based on the company’s public expose sheets, the Hot Strip Mill (HSM) was targeted to operate in the first quarter of 2019, meanwhile, the capacity of Hot Rolled Coil (HRC) factory is as much as 1.5 million ton per annum with the investment of US$ 450.4 million. So far, the factory’s progress has reached 35.93 per cent since September 2017.
Apexindo Signs Rp 125 Billion Contract with Pertamina EP
Indonesian drilling contractor PT Apexindo Pratama Duta Tbk (APEX) has obtained an onshore drilling contract from PT Pertamina EP. The onshore drilling will take place in Bunyu, North Kalimantan with an estimated contract value of Rp125.64 billion. This drilling contract will last until Oct. 6, 2018. Until the first quarter of 2018, the company will be working on four projects which consists of three geothermal projects and one oil and gas project. The geothermal project is for PLTP Tulehu, PLTP Baturaden and PLTP Lahendong.