*Indonesian Cement Association reports that cement sales were up by more than 10 percent in October. Figures from show a 10.7% year on year (yoy) increase – up to 6.4 million t – thanks to government investment in infrastructure. Government capital spending in 3Q15 was double what was spent in 1Q15, at $3.76 billion, and there is more to spend, with reports indicating some 70 percent of the capital budget remains unspent. Based on the reports, projects such as the Trans-Sumatra highway, contributed to a 17 percent rise in cement sales on Sumatra in October with the exception of Kalimantan where sales contracted. A further increase in sales is expected in the last quarter of the year, while total sales are expected to come in at 63 million t for 2015, a 5 percent increase yoy. Cement production capacity currently stands at 78 million tons.
*Indonesia National Air Carrier Association (INACA), slashed traveler growth targets from 8 percent to 6 percent in 2015 due to a weak economy and recent disruptions from haze and volcanic ash at airports across the country. Bayu Sutanto, INACA’s deputy chairman for scheduled flights, said slower economy undermining demand for air travel. In addition, He said, some airports were closed due to thick haze in Sumatra and Kalimantan. Some 73 million travelers boarded domestic or international travel in 2014, up 5.6 percent from a year earlier, according to data from Central Statistics Agency.
*State-Owned Enterprises Minister Rini Soemarno deactivated securities house PT Danareksa Sekuritas’s president director until further investigation has been carried out after having been informed the trading license suspension due to unusual market activity. Adding that she was very upset to find out the state-owned brokerage house had been involved in unusual market activity. Two other brokerages, PT Reliance Securities and PT Millenium Danatama Sekuritas, have also had their trading licenses suspended by the IDX. The IDX’ investigation report showed that they had been found guilty of shirking due diligence in trading PT Sekawan Intipratama Tbk (SIAP) stock.