Indonesia Investment Authority (INA)’s Post

Just my humble thoughts, as I’m more or less involved in the upstream side of Toll Road Development in Sumatra. I think in order to increase the financial viability of it we need to integrated the network of toll roads in North Sumatra and Riau Provinces earlier than later. Both provinces are homes to the largest agrobusiness companies in Indonesia, namely palm oil, rubber, tobacco, tea, coffee, and many others. Even as we speak, the highest traffic volume within Sumatra is found on national roads between these 2 provinces. Connecting toll roads from North Sumatra to Riau would even boost a higher traffic, not only for logistics or business-related, but also tourism. Can you imagine if people from Riau or even West Sumatra could drive easily and swiftly to Lake Toba?

Setijadi M.T., IPM, CEO of Supply Chain Indonesia (SCI), emphasizes the transformative role of toll road development in Indonesia. While the nation's maritime prowess is evident, hinterland transport is crucial for economic growth. Research from PELNI and INSA highlights that hinterland transport costs, comprising almost 50% of total transportation expenses, dominate the landscape. In 2022, the transportation sector contributed 3.96% to Indonesia's GDP, with SCI projecting growth rates of up to 19.35% by 2024. Setijadi notes that optimizing toll roads can streamline Indonesia's logistics, which currently account for 70% of transportation costs. This development promises to refine commodity prices, bolster purchasing power, and enhance Indonesia's global competitiveness. Read full story from Setijadi: https://lnkd.in/g4t4G_E9 #toll #logistics #hinterland

Discussion on Activity Projection with the Business Owner to Develop Sambal Dapur Abi Business, where this discussion focuses on strategies for developing Dapur Abi business. APINDO Sumatera Barat Asosiasi Pengusaha Indonesia (APINDO)

𝐏𝐓 𝐊𝐞𝐫𝐞𝐭𝐚 𝐀𝐩𝐢 𝐈𝐧𝐝𝐨𝐧𝐞𝐬𝐢𝐚 (𝐏𝐞𝐫𝐬𝐞𝐫𝐨) 𝐅𝐨𝐫𝐞𝐜𝐚𝐬𝐭𝐬 20% 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐆𝐫𝐨𝐰𝐭𝐡, 𝐒𝐮𝐫𝐩𝐚𝐬𝐬𝐢𝐧𝐠 𝐑𝐩30.6 𝐓𝐫𝐢𝐥𝐥𝐢𝐨𝐧 𝐛𝐲 𝐘𝐞𝐚𝐫-𝐄𝐧𝐝 Exciting times ahead for PT Kereta Api Indonesia (Persero) as they express optimism about achieving a remarkable 20% revenue growth by the end of this year, surpassing Rp30.6 trillion. Salusra Wijaya, Finance and Risk Management Director, attributes this positive outlook to the post-Covid-19 recovery, noting the improved mobility of people after the pandemic. With more individuals likely to choose train travel for vacations, the company is poised for substantial growth. Salusra revealed this forecast at the Bisnis Indonesia Top BUMN Awards 2023, highlighting the ongoing recovery. The company's financial performance in 2022 was impressive, with revenue reaching Rp25.57 trillion and a profit of Rp1.78 trillion. In the first half of 2023, KAI recorded a revenue of Rp14.25 trillion and a profit of Rp2.04 trillion, signaling a continued upward trajectory. The Finance Director emphasized the importance of internal cash performance improvement, intending to optimize all income segments, including cargo and passenger transportation. He expressed confidence in maintaining the excellent financial performance in the coming year. Moreover, KAI has successfully paid off its debt related to the Jakarta-Bandung High-speed Railway, thanks to its optimal financial performance and government support through state equity participation (PMN). Salusra remains hopeful about future prospects, with additional trains set to operate during the Christmas and New Year transportation period, catering to increased demand. As the company prepares for the festive season, KAI Public Relations VP Joni Martinus highlighted the addition of 31,856 seats on long-distance trains and the operation of 34 additional trains on popular routes. Beyond transportation services, KAI aims to explore new income sources and optimize assets, presenting a promising outlook for sustained growth. #KeretaApi #RevenueGrowth #TransportationIndustry #RailwaySector #BusinessOptimism

𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐉𝐚𝐤𝐚𝐫𝐭𝐚'𝐬 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐯𝐢𝐭𝐲: 𝐏𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐉𝐨𝐤𝐨𝐰𝐢 𝐈𝐧𝐚𝐮𝐠𝐮𝐫𝐚𝐭𝐞𝐬 𝐏𝐚𝐦𝐮𝐥𝐚𝐧𝐠-𝐂𝐢𝐧𝐞𝐫𝐞-𝐑𝐚𝐲𝐚 𝐁𝐨𝐠𝐨𝐫 𝐓𝐨𝐥𝐥 𝐑𝐨𝐚𝐝 President Joko Widodo recently inaugurated the 14.8 km Pamulang-Cinere-Raya Bogor Toll Road, a crucial segment of the Jakarta Outer Ring Road (JORR) II project, aimed at alleviating traffic congestion. With an investment of Rp4 trillion, this toll road is set to be fully connected by March 2024, offering a vital alternative route for commuters in Cibubur, Bogor, and Tangerang, reducing the need to enter the city. In his remarks, President Jokowi emphasized the toll road's significance in enhancing both people's mobility and the flow of goods across Banten, DKI Jakarta, and West Java. The completion of JORR II is anticipated to reduce traffic jams and provide faster routes, completing the toll road network structure in the Jabodetabek area. Operated by PT Cinere Serpong Jaya, a subsidiary of Jasa Marga, and PT Trans Lingkar Kita Jaya, the toll road has been in operation without tariffs since December 22, 2023. During the recent holiday period, the toll road witnessed an impressive 98.78% increase in vehicle traffic, showcasing the public's enthusiasm for this improved connectivity. As JORR II nears completion, Jokowi hopes that the toll road will be a game-changer, providing commuters from various regions, including Bogor and Cengkareng Airport, a quicker and more efficient travel option. The success of this infrastructure project aligns with Indonesia's commitment to fostering economic growth through strategic development initiatives. #IndonesiaInfrastructure #JasaMarga #TransportationDevelopment #InfrastructureDevelopment #JakartaConnectivity

The logistic sector plays a crucial role in driving national economic growth. However, Indonesia’s logistics performance in delivery services still needs to be enhanced. Would conducting a digital transformation in the logistics sector be effective? What other strategies could the government implement to reduce logistic costs? Find out more in our translated articles in Infrastructure News this week. We also feature articles on tourism foreign exchange, the operation of thirteen new toll segments, and PT Kereta Api Indonesia’s optimism on their revenue this year. https://lnkd.in/gmKEpWE #logistics

Rivan Munansa, Head of Industrial and Logistics Services mentioned that the potential tariff war between the United States and China seems to be having a positive impact on the industrial sector. This is because there are significant investment opportunities available to enter Indonesia. You can find the full coverage in the article below. To discuss more about industrial and logistics market in Indonesia, please reach out to our #expert, Rivan Munansa. Find out more about Colliers Indonesia reports, insights, and recommendations, by clicking this link: https://ow.ly/ZVBh50RMVfn #ColliersIndonesia #NewsArticle

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