Growth of automotive industry encouraging: Minister
Kamis, 25 Februari 2016 23:09 WIB | 443 Views
Jakarta (ANTARA News) - The Indonesian automotive industry is increasingly undergoing good growth as evident in the increasing investment by automotive factories in the country, Industry Minister Saleh Husin said.
"The growth of the automotive industry is good. Toyota for example has invested some Rp20 trillion for its automotive development from 2015 to 2019," noted the minister here Thursday.
Toyota had spent Rp5 trillion in 2015 and would invest Rp5.4 trillion in 2016, he said.
Based on the industry ministrys data, Toyota controls about 31 to 32 percent of the automotive market in Indonesia. It has made an investment of Rp40 trillion in Indonesia up to 2014 while in the period of 2015 - 2019, Toyota is to complete the construction of its machine factory in Karawang, West Java.
He appreciated other automotive industries which are serious in investing in Indonesia by opening new factories, either for assembling or for manufacturing of spare parts, Saleh Husin said.
"Mitsubishi has built a new factory worth Rp3.5 trillion and Wuling of China has made an investment of Rp11 trillion," Saleh Husin remarked.
His ministry has coordinated with the relevant ministries to maintain the investment climate in Indonesia. With investment climate being maintained, investors would not move to neighboring countries, the minister acknowledged.
"If Vietnam offers incentives, the investors will move to that country. So, we have to compete with it. In short, we are coordinating with other ministries to create convenient and conducive investment climate," he said.
The decision of Ford to stop operations in Indonesia was not a signal of decline in investment interest in automotive industry in the country, Chief of the Capital Investment Coordinating Board (BKPM), Franky Sibarani said late last month.
Fords decision to stop operations in the country would have no impact on investment in the automotive industry in Indonesia, Franky Sibarani said.
"Interest is still strong in venturing into the automotive industry in the country," he added.
Ford has operated only as a car importer, offering after sales service, maintenance and repair, he said.
"It has no license in the automotive industry," he added.
PT Ford Motor Indonesia, an Indonesian business unit of Ford, the producer of American cars, has announced its plan to stop operations in the country before the end of this year.
PT FMI said in its electronic letter that it saw no prospects of profit in its operation in the country. The company, however, assured its customers that it would continue to facilitate supply of services and spare parts for Indonesia.
Based on data at BKPM, total investment in the country in industry producing transport equipment including automotive industry was valued at Rp23.57 trillion in 2015, up 6.5 percent from the previous year.
Foreign investments in the automotive sector both in manufacturing and services (trade and repairs) were valued at Rp21.6 trillion in 2015, up 13 percent from the year before.
Meanwhile, Chinese automotive company Wuling is building a car factory with total investment of US$397.4 million to be completed in 2017.
Fifteen automotive component producers would cooperate with Wuling, which would produce cars the type of multipurpose vehicles (MPV), Franky said.
Wuling will have a production capacity of 84,000 units a year and would have a spare parts plant.
Based on data at OICA (International Organization of Motor Vehicle Manufacturers), the ratio to population in Indonesia is 77 to 1,000 as against 397 to 1,000 in Malaysia.
The ratio shows that the market still has high potential in Indonesia.(*)
Indonesia offering 10 main tourism destinations dubbed as "new balis"
Kamis, 25 Februari 2016 22:08 WIB | 339 Views
Jakarta (ANTARA News) - The Ministry of Tourism is offering 10 prioritized tourism destinations known as the "10 New Balis" to boost the national tourism industry.
Minister of Tourism Arief Yahya stated here on Thursday that the term "new Bali" is an idiomatic expression being used with the expectation that the offered new destinations would attract as many tourists as those visiting Bali Island.
The ten prioritized tourism destinations in 2016 are Lake Toba (North Sumatra), Belitung (Bangka Belitung), Tanjung Lesung (Banten), Seribu Islands ( Jakarta), Borobudur Temple (Central Java), Mount Bromo (East Java), Mandalika Lombok (West Nusa Tenggara), Komodo Island (East Nusa Tenggara), Wakatobi National Park (Southeast Sulawesi), and Morotai (North Maluku).
Meanwhile, Bali is one of Indonesias iconic tourism destinations, which attracts some four million tourists a year, or 40 percent of the total tourists visiting the country.
"Bali is a destination that already occupies a prestigious spot on the worlds tourism map," Minister Yahya stated.
However, the ten prioritized destinations will not be developed to resemble Bali as each of them has distinct characteristics.
"They each have their own combination of nature and culture to offer. Such diversity will make us rich in terms of the attractions, culture, and traditions. The uniqueness of each region can be explored," Yahya remarked.
The government intends to boost the number of foreign tourist arrivals, which is expected to reach 20 million by 2019.
Meanwhile, data from the Central Statistics Agency (BPS) revealed that the Indonesian tourism industry grew by 7.2 percent last year, well above the global average of 4.4 percent.
Moreover, the number of tourist arrivals in Indonesia last year exceeded the government-set target of 10 million.(*)
Sampoerna collects the award from Thomson Reuters
Kamis, 25 Februari 2016 15:43 WIB | 417 Views
JAKARTA, February 24, 2016 (Antara) – The successful Rp. 20.768 trillion (USD 1.5 billion*) rights issuance of PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP), the leading tobacco company in Southeast Asia’s biggest economy, has again won global recognition. Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, awarded Sampoerna with the 2015 International Financing Review (IFR) Asia Award in the “Indonesia Capital Markets Deal” category. Sampoerna’s Director of Finance, Michael Sandritter, received the award in Hong Kong on behalf of the company.
The IFR Asia Awards is part of the Thomson Reuters Awards for Excellence, recognizing corporate and individual success in the global financial industry.
“Pulling off a sizable equity offering in a country where macroeconomic indicators and the currency are both pointing down is no mean feat,” said Thomson Reuters in its written remarks on Sampoerna’s 269.7 million shares issued.
The Rights Issue, completed in November 2015, was the largest-ever secondary placement in Southeast Asia and also the largest equity offering in Indonesia since 2008. The Rights Issue attracted both domestic and foreign investment, with capital from foreign investors translating into currency inflows into the country, demonstrating confidence in both the Indonesian economy and stock market.
As a result, Sampoerna’s market capitalization of Rp. 504.238 trillion (USD 37,313 billion) as of February 22, 2016, is currently the largest in Indonesia. In addition, Sampoerna is also the country’s largest tax payer.
“The Indonesian company’s strong management, the defensive nature of the business and its likely entry into the local benchmark index made the stock a must-have for local and international investors and paved the way for a premium pricing,” said Thomson Reuters.
Mr. Sandritter expressed his appreciation for the award.
“The award inspires us to work even harder for all of our adult-smokers, business partners and shareholders. Sampoerna’s decision to conduct the Rights Issue, and investors’ overwhelming positive response to the deal, indicates broad confidence in Indonesia and its long-term prospects,” said Mr. Sandritter, a member of Sampoerna’s Board of Directors.
In January 2016, Sampoerna also received the 2015 FinanceAsia Achievement Award in the "Best Indonesia Deal" category.
About PT HM Sampoerna Tbk.
Founded in 1913, Sampoerna -- an affiliate of PT Philip Morris Indonesia and part of Philip Morris International Inc. -- is the leading Indonesian tobacco company, focusing primarily on the production and sale of clove cigarettes. In 2015, Sampoerna held a 35.0% market share driven by its strong brand portfolio, including
Dji Sam Soe and
A Mild in the premium price segment and
Sampoerna Kretek and
U Mild in the mid-price segment. Sampoerna operates seven production facilities in Java and partners with 38 Third Party Operators, employing – directly and indirectly – a total of approximately 70,000 employees, mostly in the production of hand-rolled clove cigarettes. Sampoerna distributes its products via more than 100 sales and distribution area offices across Indonesia.
Sampoerna is the largest company by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol “HMSP.” Sampoerna was Indonesia’s largest taxpayer in 2015, with payments to the Government of more than Rp. 67 trillion.
For further information, please visit:
www.sampoerna.com
Media Contact:
Elvira Lianita
Head of Regulatory Affairs, International Trade, & Communications
PT HM Sampoerna Tbk.
Tel. +62 21 515 1234
Fax. +62 21 515 2234
Email
elvira.lianita@sampoerna.com
PT Astra International Tbk reports Rp14.5 trillion net profit
Jumat, 26 Februari 2016 02:11 WIB | 26 Views
Jakarta (ANTARA News - PT Astra International Tbk.s reported net profit of Rp14.46 trillion in 2015, down 25 percent from the Rp19.19 trillion recorded in the previous year.
"The Astra Group suffered business challenges during the whole of 2015 making its net profit drop. Excluding non-cash cost expenses stemming from depreciation of coal mine property value in 2015 and the years before, the corporations net profit declined by 20 percent to Rp16 trillion," President Director, Prijono Sugiarto, said in a press release received here on Thursday.
He said he had remained wary of future business prospects, but with the companys capability to produce good cash and a strong financial balance sheet, Astra International Tbk. would continue to invest in the future and be ready to adopt any opportunity stemming from an improvement in the economic conditions.
Astras consolidated net income was down 9 percent to Rp184.2 trillion in 2015, owing to a decline in the automotive segment, heavy equipment, mining and agribusinesses.
"In 2015, the company faced a reduction in commodity prices and domestic consumption, while competition from the car sales sector increased and the quality of corporate credit dropped due to a decline in contribution from all sectors, except information technology," he said.
He also explained that the Astra Groups business lines covered automotive, financial service, heavy equipment and mining, agribusiness, infrastructure, logistic and others, and information technology.
The net profit contribution from the groups automotive business was down 12 percent to Rp7.5 trillion, while financial services contribution slipped by 25 percent to Rp3.6 trillion.
Net contribution of the heavy equipment and mining business sector to the Astra Group dropped by 28 percent to Rp2.3 trillion and agribusiness by 75 percent to Rp493 billion.
Net profit from infrastructure, logistics and other segments was down 17 percent to Rp406 billion. Only the information technology segment reported an increase of 2 percent in net profit to Rp204 billion.(*)
