Daily Business Briefs – Dec 5

President Joko Widodo inaugurates Soreang-Pasir Koja toll road in West Java. (Photo credit : Cabinet Secretary)

JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:

President Officiates Soreang-Pasir Koja Toll Road in West Java

President Joko Widodo on Monday (4/11) inaugurated the operation of Soreang-Pasir Kota toll road in West Java, which is expected to help connectivity in the area. The toll road, with a length of 10.57 km was initially planned in 1996. However, it was kept undeveloped for long-time until President Joko Widodo came to power. The President pushed the Public Works Ministry to resume the project. So far this year, around 143.57-km long of toll roads have been added.

Surabaya-Mojokerto Toll Road to Start Operation by Year-End

Public Works and People Housing Ministry announced that the 36.27-km of Surabaya-Mojokerto toll road in East Java is scheduled to begin operating by the end of this year. President Joko Widodo is expected to officiate the operation of the toll road. The toll road operation was revealed after the developer received a recommendation from the Transportation Ministry.

Timah Sets Capex of Up to Rp1.5 Trillion to Boost Output

The country’s largest tin producer PT Timah Tbk (IDX:TINS) has set aside Rp1-Rp1.5 trillion in capital expenditure next year in a move to boost production. A portion of the funds will be used to buy new equipment to enlarge the company’s production capacity.

SOE Ministry Mulls a Plan to Merge Two Syariah Banks

The State Owned Enterprises (SOE) Ministry mulls a plan to merge two syariah bank units, namely BTN Syariah and BNI Syariah. The merger option was initiated in 2015 in a move to enlarge the size of syariah banking activities in Indonesia.

OPEC Oil Basket Price Increases 

The OPEC Reference Basket averaged $55.50/b in October, gaining $2.06 over the previous month and reaching the highest value in more than two-and-a-half years, with a year-to-date average of $50.68 per barrel. Crude futures also reached levels not seen since mid-2015. Prices have been supported by rising global demand data and expectations that major producing nations will extend a deal to adjust output and bring the oil market to a balance.

Pelita Samudera Launches Its Market Debut Today

PT Pelita Samudera Shipping Tbk (IDX:PSSI), a shipping line firm, launches its market debut on the Indonesian Stock Exchange today. The company has divested 1.01 billion units shares or 20 per cent of the company’s enlarged capital, to the public through an initial public offering (IPO) at a price of Rp135 per share, The company managed to raise Rp135.8 billion from the IPO. Around 60 per cent of the IPO proceeds will be used to strengthen working capital, 20 per cent to repay bank debts and the remaining 20 per cent for capital expenditure. The company is the 31st company to have launched IPO this year.