JAKARTA (TheInsiderStories) – Good morning. We offer you several relevant news that might help your business decisions today:
JCI Rises 0.49 Percent in Third Week November
The Jakarta Composite Index (JCI) rose 0.49 per cent to 6,051.73 points on Friday (17/11) from 6,021.82 points in the previous trade closing of the week. The value of market capitalization of Indonesia Stock Exchange (IDX) also increased 0.42 per cent to Rp6,693.94 trillion from Rp6,665.64 trillion a week earlier. The average daily stock trading volume last week grew 20.62 per cent to 11.11 billion units of stocks from 9.21 billion units a week earlier.
Amman Mineral Says Smelter Development on Schedule
Amman Mineral Nusa Tenggara, the gold mining subsidiary of Medco Energi Indonesia, said its US$1 billion smelter development in West Sumbawa, West Nusa Tenggara, is progressing according to plan. The comment followed an earlier report that suggested the company’s smelter location did not comply with the region’s spatial plan. Progress in Amman’s smelter development is crucial for the company to secure an extension of its ore export permits, which will expire in February. The company currently has permits to export 675,000 metric tons of gold and copper concentrate.
PLN Signs Renewable Energy Deals Worth US$1.5B
State-owned utility company Perusahaan Listrik Negara signed power purchase agreements worth Rp 20.4 trillion ($1.5 billion) on Thursday (16/11) with nine independent power producers that will build renewable power plants with a total capacity of 640.65 megawatts. The deal is part of the government’s efforts to increase the portion of renewable energy in the country’s primary energy mix to 23 per cent by 2025 from just 7 per cent currently. Energy and Mineral Resources Minister Ignasius Jonan said the new power plants, including a geothermal, a hydropower, and seven small hydropower plants, will bring the total capacity included in power purchase agreements signed this year to 1,189.22 MW.
Government Mulls Fiscal Incentives for Siam Group’s US$600M Petrochemical Plant
Minister of Industry Airlangga Hartarto, encouraged the realization of investment from Thailand’s major manufacturing company Siam Cement Group (SCG), which plans to build a US$600-million naphtha cracker production facility in Cilegon, Banten. It is expected that the factory will meet Indonesia’s needs of raw materials so as to reduce imports. To support the development of the petrochemical industry in Indonesia, the Ministry of Industry will facilitate companies to obtain fiscal incentives, such as tax allowance or tax holiday.
FSA Set to Finalize Green Bond Regulation
The Financial Services Authority (FSA) stated that it is finalizing the regulation on the securities of environmentally-sound debt (green bond). This regulation is expected to be published before the end of 2017. OJK Chief Executive for Capital Markets Supervision Hoesen explained companies that want to issue green bond must be able to ensure that the funds will be used for projects that have influence and reduce the impact of environmental pollution.
U.S. dollar, Wall Street fall with tax overhaul in focus
The U.S. dollar was lower on Friday along with Wall Street stocks as investors pulled back from technology stocks and were skeptical President Donald Trump’s Republican party would succeed in its efforts at overhauling U.S. tax law. U.S. Treasury yields edged lower, in line with declines in U.S. stock indexes and German 10-year bond yields, as risk appetite faded. The yield curve continued to flatten after strong U.S. housing starts data for October and investors bet on further rate hikes from the Federal Reserve.