The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Indonesia climbed 15 places in the World Bank's Ease of Doing Business index 2017 from 106 to 91, hence being among the ten biggest climbers. Overall, the World Bank saw a record 137 economies around the globe adopting key reforms that make it easier to start and operate small and medium-sized businesses. The World Bank released its latest index, titled “Doing Business 2017: Equal Opportunity for All” on Wednesday (26/10).
Indonesian state-controlled construction company Adhi Karya is facing a number of challenges and therefore CIMB Securities has cut its outlook for Adhi Karya's corporate earnings in the years ahead. These challenges include (1) uncertainty surrounding the financing of the light rail transit (LRT) Jakarta-Bogor-Depok-Bekasi, (2) the possibility of rising losses incurred due to the company's power plant and Residue Fluid Catalytic Cracking (RFCC) projects, and (3) the disappointing number of new contracts so far this year.
Bank Rakyat Indonesia (BRI), one of the leading commercial banks in Indonesia, is expected to see rising corporate earnings in the years ahead supported by the disbursement of micro-loans. RHB OSK Securities says BRI, listed on the Indonesia Stock Exchange yet state-controlled, is one of the most interesting banks as it has a strong micro-loans business model, a business model that cannot be easily copied by the nation's other commercial banks.
Ramayana Lestari Sentosa, one of Indonesia's biggest department stores, is expected to see improving corporate earnings in the years ahead. In the first nine months of 2016 the company's sales reached IDR 6.4 trillion (approx. USD $492 million), or about 77 percent of the full-year sales target that was set by Danareksa Sekuritas (IDR 8.07 trillion). This strong performance is primarily supported by same-store sales growth in Jakarta (+8.7 percent y/y), Java (+7.3 percent), and outside Java (+4.1 percent).
The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.
