Despite ample hydrocarbon reserves, Indonesia's oil and gas production is set to face long-term declines over the next decade. Investment interested in the Indonesian upstream sector will prove muted due to notorious regulatory issues, uncertainty surrounding ongoing review of the domestic oil and gas law and the high-cost, long-term nature of potential projects.
Falling production against rising demand will see Indonesia become a larger importer of crude oil, refined fuels and natural gas (in the form of LNG) over our 10-year forecast period. Notably, diminishing gas supplies and subsequent pressure to exports will turn Indonesia into a net LNG importer for the first time by 2021. Realisation of the government's ambitious downstream expansion plans cou…
Falling production, slowing exploration interest and a maturing asset base - alongside rapid consumption growth - will increase Indonesia's dependency on crude oil and refined fuels imports over the coming years. The country's historical self-sufficiency in natural gas is expected to end by 2022.
Indonesian shipping firm PT Djakarta Lloyd plans to boos t its coal s hipping busines s by signing contracts with PT Adaro Indonesia and PT Berau Coal in 20 15, reports the Jakarta Pos
The Port of Tanjung Priok will see continued positive growth in 2016, building on momentum from last year. For annual tonnage throughput we forecast a robust 6.0% growth and a more sedate 2.6% for container throughput. Indonesia's other major port, Palembang, will also record positive growth in 2016, albeit at slightly slower rates compared to 2015, with 3.5% growth in annual throughput and 5.3…
APL is currently ranked the 12th larg es t containers hip operator g lobally by French cons ultancy Alphaliner. The container s hipping brand of Sing apore-bas ed Neptune Orient Lines (NOL) operates 9 0 ves s els . NOL was formed in 19 6 8 and as s umed its current form in 19 9 7 by merg ing with American Pres ident Lines (APL). NOL is the holding company lis ted on the Sing apore Stock Exchang…
Conservative Islamist groups have taken a swing at the Jokowi administration again, this time alleging it of sympathising and harbouring the communists, as well as clamping down on Islamic organisations. We believe that such attempts to undermine the government will persist in the run-up to the 2019 general election s as the hard-liners push for a greater degree of political Islam in the countr…
The National ICT Council is chaired by the Indonesian president and is responsible for formulating IT policy as well as coordinating a cross-departmental e-government initiative at all levels. It includes ministers representing 10 other state departments , including finance, law, education, trade and research and technology. The council has been tasked with implementing a large and ambitious pr…
The Indonesian telecommunications governance and regulatory model retains a strong governmental element in its functionary dynamics. The Indonesian Telecoms Regulatory Authority (ITRA) remains closely linked to the Jakarta based government . Further, the competent Ministry of Communications and Information Technology (MCIT) exercises a high degree of control over the national telecommunications…
Although a cute fuel shortages in the US Gulf C oast and strong demand growth in the regional EMs triggered aggressive fuel stock drawdowns in Singapore over the past few weeks, we expect stock levels to rebound over the coming months, as refineries stock up on supply ahead of the winter months and ex ports ramp-up from China. Combined refined fuel stockpiles in Singapore fell for the fourth co…
BMI View: LNG-to-power solutions will continue to add new markets and grow demand for LNG over the next 10 years. Only some of the proposed projects will be realised, but many that do also have scalability to increase imports. We envisage as much as 40bcm of demand creation , with 2019 and 2020 appearing to be strong years for growth. The pending addition of new LNG liquefaction capacity in 201…
The Indones ian g overnment expects to receive USD9 .3bn in inves tments into the country's maritime s ector from four countries - Japan, Australia, South Korea and China - according to the Inves tment Coordinating Board (BKPM). 'Three inves tors from Aus tralia, South Korea and China will inves t in the development of dockyards and two inves tors from Japan and China will inves t in fis heries…
Chandra Asri Petrochemical (CAP) remains the leader in investment in petrochemicals. CAP has set out plans to invest USD6bn in a number of projects over 2016-2021. CAP's capital outlay for 2017 was USD150mn focusing on ramping up production capacity on a number of petrochemical products, particularly butadiene, as well as its cracker facility. Indonesian chemicals output surged 10.1% y-o-y in 9…
BMI View: In 2016 the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in 2015 and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to 2019, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external in…
Indonesia's mineral production growth will accelerate in the coming quarters, following the easing of the mineral ore export ban. Nevertheless, policy uncertainty, bureaucracy, resource nationalism and regulatory hurdles will increasingly lead to foreign miners divesting their assets and handing them over to locals over our forecast period from 2018-2027.
Indones ia-bas ed Tanjung Priok port is s et to receive eig ht units of s hip-to-s hore g antry cranes (STSs ) and 20 units of rubber tyred g antry cranes (RTGs ) from Japanes e firm
Reduction of Fuel Subsidies Will Lower Growth In Short Term A key development in June has prompted BMI to revise its economic outlook for Indonesia this year. On June 22 the government raised the prices of subsidised premium petrol and diesel by 44.4% and 22.2% respectively. This led to an inflation spike (the annual rate of inflation rose to 8.6% in July) and to a tightening of monetary policy…
With both economic growth and foreign trade activity gathering pace moderately in 2015, we expect activity levels at Indonesia's main ports to grow. But there will be leads and lags, with some short-term weaknesses in freight demand recovering later in the year. Growth will not be uniform. At the port of Tanjung Priok cargo handled will rise more rapidly than in 2014, with expansion in the 3-6%…
With both economic growth and foreign trade activity gathering pace moderately in 2015, we expect activity levels at Indonesia's main ports to grow. But there will be leads and lags, with some short-term weaknesses in freight demand recovering later in the year. Growth will not be uniform. At the port of Tanjung Priok cargo handled will rise more rapidly than in 2014, with expansion in the 3-6%…
Our outlook for the Indonesian economy remains unchanged since our last quarterly report. BMI continues to forecast GDP growth of 6.1% in 2013, rising to 6.4% in 2014. The big driver of this growth is domestic consumer spending, which represents around 55% of GDP. Coupled with good fundamentals and gradual improvements in the operating environment as a result of government reforms, this has giv…
In 2009 BMI believes that throughput trends at Indonesia's ports will follow the pattern of the country's trade sector. We predict that both imports and exports will fall by 9.5 percent in 2009. A recovery is set to begin in 2010, with total trade forecast to increase by 9%. An average yearly growth of 10.2% between 2011 and 2013 is predicted.
We are expecting activity at Indonesia's main ports to be positive and broadly comparable to last year, with growth of cargo handled ranging roughly between 3% and 8%. Of particular interest to the bulk shipping sector is the fate of the government's existing ban on the export of unprocessed mineral ores. The Constitutional Court upheld the ban in December, but there have been some signs that t…
We are expecting activity at Indonesia's main ports to be positive and broadly comparable to last year, with growth of cargo handled ranging roughly between 3% and 8%. Of particular interest to the bulk shipping sector is the fate of the government's existing ban on the export of unprocessed mineral ores. The Constitutional Court upheld the ban in December, but there have been some signs that t…
Since our last quarterly shipping report, we have become more optimistic about Indonesia's macroeconomic outlook in 2013. With the US, Europe, and China looking at economic rebounds of differing intensities, the external environment has become more favourable. After a tough year in 2012 the global mining industry is looking more upbeat, with key metal commodity prices likely to improve. While w…
We have trimmed back our growth forecast for the Indonesian economy this year, as global and Asian regional growth rates come down, reducing demand for the country's exports. We still believe that the country has solid domestic fundamentals which, to some extent, protect it from the gloomier outside climate. These include strong consumer spending and growing investment in infrastructure. Rising…
Indonesia is growing strongly in 2012, despite the recessionary trends in the world economy. BMI believes expansion is driven by the healthy state of the country's large internal market, its solid banking system, and various other factors such as its diversified exports (commodities and manufactures). The economy remained dynamic in 2011, and in 2012 we expect it to continue to push ahead. This…
The shipping industry entered 2009 in a state of crisis. All shipping sectors had been hit hard, with the dry bulk sector struggling to recover from a plunge in November 2008 that took the Baltic Dry Index to a nine-year low. Rumours persisted that containers were being shipped for a little as US$200 and that the only thing keeping the liquid bulk sector afloat was that tankers were being used …
The shipping industry entered 2009 in a state of crisis. All shipping sectors had been hit hard, with the dry bulk sector struggling to recover from a plunge in November 2008 that took the Baltic Dry Index to a nine-year low. Rumours persisted that containers were being shipped for a little as US$200 and that the only thing keeping the liquid bulk sector afloat was that tankers were being used …
At the moment, Indonesia is one of the few economies showing capacity to buck the trend towards a global economic slowdown. The economy remained dynamic in 2011, and in 2012 we expect it to continue to push ahead. This is good news for the ports and shipping industry. While net exports may falter a little as global demand cools, domestic consumption and investment look resilient. BMI now foreca…
Investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the restrictions on foreign direct investment (FDI), excessive red tape associated with trading and setting up a business, a poorly skilled labour market, a disjointed and highly variable logistics network and the threats to foreign workers and businesses from cri…
Indonesia's construction and infrastructure sector will register steady growth over the next decade, driven by the residential and non-residential segment. Land acquisition and financing will remain the major impediments to the implementation of PPP projects.
We are expecting s lig htly fas ter g rowth at Tanjung Priok in 20 15. In recent years the facility has been benefiting from rapid g rowth on the back of the country's s trong macroeconomic picture. While this g rowth has been pos itive for the port in terms of driving up throug hput, demand has outpaced development and Tanjung Priok is already operating at above its ins talled capacity level. …
Indones ia is the world's larg es t archipelag o, with a s urface area of 1.9 2mn km and a population of 234 .8mn (20 0 3). Es s entially a collection of over 17,0 0 0 is lands , of which 6 ,0 0 0 are inhabited, it s hares land borders with Eas t Timor, Malays ia and Papua New Guinea. The country is located in a s trateg ically important area, along major s ea lanes linking the Indian and Pacif…
As 20 15 comes to an end, and 20 16 comes into focus , there remains s ig nificant unfinis hed bus ines s in the g lobal economy. While 20 16 will s ee hig her real GDP g rowth (3.0%) than the previous two years (2.7-2.8%), reflecting more expans ive activity in s everal key countries and a revers al of contraction in others , this will s till 'feel' s ubdued, with g lobal inves tment and trade…
Maers k Line is the main container s hipping unit of hig hly divers ified s hipping and energ y cong lomerate AP Moller-Maers k Group. The g roup's other box s hipping s ubs idiaries and brands are MCC Trans port, which operates its intra-As ia route network, Safmarine, which trans ports boxes to and from Africa and the Middle Eas t, Mercos ul (Brazil), intra-Europe carrier Seag o Line and intr…
Excel Maritime Carriers is a Greek owner and operator of dry bulk carriers and a provider of s eaborne trans portation s ervices for dry bulk carg o. The company is a lis ted corporation and its s hares trade on the New York Stock Exchang e (NYSE). The company's his tory dates back to February 1989 , when it was lis ted on the AMEX and NASDAQ under the name B+H Maritime Carriers . In October 19…
Excel Maritime Carriers is a Greek owner and operator of dry bulk carriers and a provider of s eaborne trans portation s ervices for dry bulk carg o. The company is a lis ted corporation and its s hares trade on the New York Stock Exchang e (NYSE).
With dry bulk rates remaining depres s ed and concerns g rowing about a pos s ible fall-off in Chines e demand for imports of coal and iron ore, BMI's view on the dry bulk s ector remains bearis h. The s ector remains hig hly dependent on Chines e demand, as demons trated by the fact that the Baltic Dry Index reacheda 25-year low in February when China s topped importing dry bulk g oods during …
Investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the restrictions on foreign direct investment (FDI), excessive red tape associated with trading and setting up a business, a poorly skilled labour market, a disjointed and highly variable logistics network and the threats to foreign workers and businesses from cri…
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Both of Indonesia's main ports are set to experience positive growth in 2016. Consumer demand and economic growth are set to bolster the country's shipping services, although the ongoing slowdown in China's economy could hold Indonesia back from maximising its potential over the next couple of years.
Our freight transport forecast for 2015 shows cargo volume growth will continue at a similar pace to 2014. Both GDP and foreign trade expansion will support the freight sector. In the medium to longer term we continue to think that the key to sustainable growth is investment in port infrastructure, including road and rail links in the hinterland areas. We are encouraged to see that the new gove…
Our shipping and ports forecast for 2015 shows growth rates picking up pace slightly at the port of Tanjung Priok, while they will decelerate a little at the smaller facility at Palembang. This reflects the slightly mixed freight demand picture as the Indonesian economy is set to slow marginally, while foreign trade picks up pace compared to 2014. Over the medium- to long-term, we continue to b…
Indonesia's construction and infrastructure sector will register steady growth over the next decade, driven by the residential and non-residential segment. Land acquisition and financing will remain the major impediments to the implementation of PPP projects.
In 2016 the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in 2015 and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to 2019, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external investment i…
In 2016 the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in 2015 and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to 2019, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external investment i…
After a slowdown in Asian trade in 2015, Indonesia's trade sector is set to return to growth in 2016 and will strengthen over the medium term. All major commodities exports and imports are expected to return to positive growth and with it, Indonesia's freight transport modes will benefit. Rail and air freight will, in particular, see marked growth as a result of state and external investment in…