We are expecting for more government stimulus next year, targeting to bring down inflation as well as improvement in consumers’ purchasing power such as lower fuel price and electricity subsidies, helping to regain the consumers’ confidence back. Another plan is the disbursement of the direct cash assistance for households whose income is less than average.
We still bullish on cement sector as we like the sector’s recovery stories, both on demand and margin outlook in 2016. Despite we expect new players will create more challenging competition in 2016. Despite we expect new players will create more challenging competition in 2016, we still confident that demand will remain structurally strong given the new government’s infrastructure development initiatives, huge backlog on national housing sector and low cement consumption per capita.
Indonesian government planned a construction of 1,000 km of toll roads. This addition consists of Trans Sumatra, Trans Java, Samarinda – Balikpapan Toll Road and Manado Bitung Toll Road. Currently, the total length of operating toll road in Indonesia has reached 820.2 km.
Consolidation among telco players leads to more rational competition among survivors, with ARPU tends to increase. Telkomsel has raised its data package recently and we expect the pther players to follow. Meanwhile, voice segment will remain as value buffer despite its benign growth.
Banking industry loan growth in Indonesia has been slowing down since 2014 until today. Apparently it was caused by the loan growth which fell down to 11.5% YoY from 21.8% YoY in 2013.
Global economic growth in 2016 projected at 3.8%. One of its main cause is the economy of United States, which roughly increased by 3% and India at 7.5%. China is expected to have a decreasing growth in its economy by 0.5% leaning towards 6.3%.