The government is cautious over US spending cut
The government is cautious over US US$85bn spending cut in 2013 as such scenario is not expected when Indonesian economic growth target is made. The impact may not be deadly, though, as the Chief of Fiscal Policy Agency Bambang Brodjonegoro estimates that each 1% decline in US economic growth will impact Indonesia GDP only by 0.1% (
Kontan)
Ministerial spending absorption is still low
Kontan daily reported that ministerial spending absorption is recorded at 4.9% of Rp594.6tn budget in early Mar13. The Minister of Finance Agus Martowardojo expressed that some ministries have not yet finishing their budget disbursement process. This includes administrative process such as terms of reference (TOR) and expense budget details. At the current rate, budget absorption in 1Q13 is not expected to be better than it was in 1Q12 (
Kontan)
INTP to increase production by 10% to 20.5 mt
Indocement will boost up its cement production more than 10% to 20.5 mt this year as their mill in Citeureup, Bogor, West Java starts to operate. As of FY12, the company’s capacity is at 18.6 mt or equivalent to 33.8% of total national capacity. This year, INTP will also start the construction of another plant in Citeureup with a capacity og 4.4 mt per year and is expected to be done by 2015. The company is allocating Rp2.5-3tn for CAPEX which will be used for the plant construction. (
Bisnis Indonesia)
Medan-Kualanamu & Serpong-Balaraja toll roads are expected to cost Rp11tn
Nusantara Infrastucture (META) expects an investment of Rp11.25tn for the construction of the Medan-Kualanamu & Serpong-Balaraja toll roads, where the former will cost Rp5.85tn and the latter Rp5.45tn. The funding will come from internal cash and consortium fund (30%) and bank loans (70%). (
Investor Daily)
Office demand in the CBD rises by 15%
Demand for office in the Jakarta CBD grows by 15% in 2013 from 300,000 sqm to 350,000 sqm while rental rate grows by 10-15%. Meanwhile, landbank left at the CBD is around 200 ha which is enough for a couple of years going forward. New offices opening this year include the Ciputra World Jakarta (CWJ) I with 64,000 sqm and DBS Bank as its anchor tenant, Kota Kasablanka Tower A with 58,000 sqm, and Life Tower Kuningan with 32,500 sqm. Office rental rate is expected to increase by 15% while ASP is expected to increase by 20% from Rp22mn per sqm to Rp26mn per sqm. (
Investor Daily)
