Holcim Indonesia, DKJ Jakarta sign $5.5m infrastructure deal

Photo from Transjakarta website.

Indonesia based cement manufacturer PT Holcim Indonesia Tbk (SMCB), and the Jakarta provincial government (DKI Jakarta) have signed two  infrastructure related agreements. The agreements that involve road repair in the capital city using the super material SpeedCrete, has total contract value of $5.5 million. The agreement was signed last week between two parties.

The Jakarta provincial government plans to repair 200 kilometers of the city’s “Transjakarta” bus lanes on high-tech and fast-drying concrete around provincial greater areas.

Holcim spokesperson Ian R.Ferdinandus, said in a statement beside Transjakarta road, the company plans to repair Marunda street in North Jakarta, Kebon Nanas-Ahmad Yani intersection in East Jakarta and the Jl. Pramuka-Matraman inter-section, in Central Jakarta.

In the 2015 State Budget, the Indonesia government has decided to allocate around Rp23 trillion ($1.68 billion) for provincial roads and regency roads. Minister for Public Works and Housing Affairs Basuki Hadimuljono, said over the next five years, the government is planning to allocate a total of Rp490 trillion to repair provincial roads, as well as roads linking sub-districts within a regency or “regency roads”.

He added, about one-third of the total 47,000 kilometers of road connecting cities within provinces, called “provincial roads”, have been damaged. Meanwhile, almost half of the 350,000 km of roads in the regencies are also damaged.

“Our goal is to repair at least 70 per cent of the damaged roads over the next five years,” the minister said.

In first half of 2015, Holcim as a group reported that its sales fell 3.1 per cent  to CHF8.65 billion, as better performance in North America could not compensate for lower sales in other regions.

Net income increased by 4.9 per cent to CHF690 million, mainly as a result of the divestment of Holcim’s minority shareholding in Siam City Cement. Net income attributable to shareholders of Holcim Ltd was also up by 18  per cent  to CHF573 million.

Cement volumes decreased 2 per cent  to 67.6 million tons as Group regions Asia Pacific, Europe, and Africa Middle East reported declines. Aggregates deliveries increased 3.4 per cent  to 72.0 million tons, building on the volume growth in Group regions Europe and North America.

For 2015, Holcim expects that the global economy continues its gradual recovery. Key construction markets of Holcim in countries like the USA, India, Mexico, Colombia, the UK and the Philippines are expected to be the main growth drivers.

Europe overall should have a flat development. Latin America will continue to face uncertainties in Brazil but should overall show slight growth in 2015. The Asia Pacific region is expected to grow although at a still modest pace. A flat development is expected in Africa Middle East.

In this environment cement volumes should increase in all Group regions in 2015 with the exception of Europe and Africa Middle East.

PT Holcim Indonesia Tbk (SMCB) is now in the process to merge with other cement producer PT Lafarge Cement Indonesia after its holding company Swiss Holcim Ltd and French Lafarge SA announced the final step of the merged.

Related stories: Indonesia based units of Holcim, Lafarge to merge

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.