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.
Whereas the Indonesian Automotive Industry Association (Gaikindo), expects Indonesia's car sales to rise five percent (y/y) in 2016 on the back of improving economic conditions, US-based consulting firm Frost & Sullivan expects to see a 4.3 percent decline in the country's car sales this year as continued rupiah depreciation and persistently low commodity prices undermine Indonesians' purchasing power.
Consumer goods producer Unilever Indonesia, one of Indonesia's leading consumer goods firms, is expected to show better corporate earnings in 2016 compared to the preceding years on improving purchasing power of Indonesia's population. The company's net profit is estimated to grow by 15 percent compound annual growth rate (CAGR) in the coming two years, while its EBIT margin is expected to remain above 23 percent as higher costs of raw materials are compensated by higher selling prices.
Chevron Indonesia Company (CICO) announced on Tuesday (19/01) that it will return all its oil and gas assets in the East Kalimantan block back to the Indonesian government on 24 October 2018. Without elaborating on why the company exits the East Kalimantan oil & gas block after having exploited this block for about 50 years, Chuck Taylor, Managing Director Chevron IndoAsia Business Unit, confirmed CICO will not seek extension of its production sharing contract after 2018.
Media company Media Nusantara Citra (MNC) is expected to post good corporate earnings in 2016 on the back of Indonesia's (estimated) accelerating economic growth, relatively high TV ad prices, and its television channels - RCTI, MNC TV, Global TV, and iNews TV - through which the company commands the largest share of the free-to-air market in Indonesia. The MNC Group is controlled by Indonesian media magnate Hary Tanoesoedibjo.
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.
