• Indonesian Companies in Focus: AKR Corporindo's Industrial Estate

    AKR Corporindo, one of Indonesia's leading providers of integrated supply chain solutions and particularly known for being a petroleum and basic chemicals trader, can take advantage of a recent government decision that allows the company to construct power plants to supply energy to its tenants at its Java Integrated Industrial and Port Estate (JIIPE) in Gresik (East Java), one of the larger industrial estates in the archipelago. Through these future energy sales, AKR Corporindo is to generate additional income.

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  • Indonesian Pharmaceutical Companies in Focus: Kimia Farma

    State-controlled pharmaceutical company Kimia Farma is expected to show steadily improving corporate earnings in the years ahead supported by Indonesia's universal healthcare scheme (in Indonesian: Jaminan Kesehatan Nasional or JKN) that was implemented by the social security agency Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS) in early 2014. The scheme aims to provide all Indonesian citizens with access to a wide range of health services. Obviously, local pharmaceutical companies are in a great position to benefit from this program.

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  • Construction Sector of Indonesia: State-Controlled Firms to Thrive?

    Construction companies in Indonesia are expected to grow strongly, supported by the availability of many new construction contracts, in the second half of 2016. Particularly state-controlled construction firms are expected to benefit from the government's push for infrastructure development. The central government's budget for infrastructure development has risen significantly in recent years (see table below), while the government also tries to direct part of the funds that are generated through the tax amnesty program toward infrastructure development.

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  • Indonesian Food Manufacturing Companies in Focus: Mayora Indah

    To increase liquidity and boost the value (the psychological effect), Indonesia-based Mayora Indah will conduct a 25-for-1 stock split. In combination with expected long-term net profit growth due to its fundamental strengths, the future looks bright for the food manufacturer. The company's shares touched IDR 39,000 a piece this week and are therefore perceived as expensive. After the stock split more retail investors are expected to collect Mayora Indah's shares despite the true value remaining unchanged.

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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
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