Financial News

Garuda Indonesia finalized a US $ 300 million loan

PT Garuda Indonesia Tbk. (GIAA) is looking for a new scheme to fund its expansion needs. The airline company will seek longer-term loans to replace short-term funding. This year, GIAA prepares capital expenditure or capital expenditure (capex) of US $ 250 million to US $ 300 million for routine maintenance. Until the first half of this year, GIAA has realized 60% of capex. To boost profits, GIAA will increase aircraft utilization and continue to renegotiate its aircraft, maintain product quality and on time performance.

(Read More: Kontan)


Jasa Marga targets to operate nearly 1,000 km of toll roads

State-owned toll road operator PT Jasa Marga targets to operate nearly 1,000 kilometers of toll roads this year from the current 787 km that is in operation, said the company’s president director, Desi Aryani, on Thursday.

Jasa Marga is seeking to operate the transJava toll roads, arguing that such a scheme would be more effective as the company owned 65 percent of transJava toll roads, she said, adding that the company would establish a new firm, PT Jasa Marga Trans Jawa All Road.

Currently, there are 20 Indonesia Toll Road Authorities (BPJT) operating transJava toll roads, 13 of which are owned by Jasa Marga, while the remaining BPJTs are owned, among others, by state-owned construction company Waskita Karya and the Astra Group.

(Read More: The Jakarta Post)


China has a $ 410 stealth Billion stash to boost the economy

Stashed away around China is a pile of cash larger than the annual economic output of Norway. Governments at all levels across the nation have a total of 2.8 trillion yuan ($410 billion) saved, according to researchers at Industrial Bank Co., and that money could be used to boost economic growth in the event of further escalation of the trade war.

The money is from unspent revenues, profits from land sales, levies or profit from state firms, expected bond revenues and other sources. The hoard exceeds the targeted national budget deficit of 2.38 trillion yuan for this year. While those funds are unlikely to be spent all at once, the sheer size of it shows that there is a cushion available to shield the economy from shocks due to the trade war with the U.S. In addition, extra funding could come from public-private partnerships or local governments, according to the note.

(Read More: Bloomberg)


The volume of heavy equipment increased, Indonesia’s Vehicle Terminal revenue grew 28%

PT Indonesia Vehicle Terminal Tbk (IPCC) recorded a glossy performance in the first half of this year. The IPCC posted a 28% increase in sales and revenue to Rp 250.27 billion from Rp 196 billion in the same period in 2017.

In terms of operational performance, CBU cars volume increased by 10%. While the machine throughput increased significantly by 77.6%. “This is due to the high demand for heavy equipment in the mining industry and national infrastructure development,” explained IPCC President Director Chiefy Adi Kusmargono in a press release on Thursday (9/8).

(Read More: Kontan)