New Market Report Now Available: Indonesia Shipping Report Q2 2013

Indonesia's 2013 Outlook Is Improving

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 we had expected mining investment to take a hit in 2013, we now think it will be quite resilient. Although we are concerned over Indonesia's increasingly protectionist stance on mining (it plans to ban unprocessed mineral exports in 2014 as a way of ensuring that more value-added refining and processing remains within the country) this is not yet making a serious dent in FDI inflows. Bearing these factors in mind, we now forecast that after 6.2% growth in 2012, Indonesian GDP will advance by a further 6.1% in 2013 (higher than our previous forecast of 5.6%). In fact, over the next five years annual GDP growth is set to average 6.4%, confirming the country's status as one of the top performers in Asia.

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Full Report Details at
- http://www.fastmr.com/prod/554075_indonesia_shipping_report_q2_2013.aspx?afid=301
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As far as the shipping sector is concerned, 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 some evidence of progress on this front.

Headline Industry Data

* 2013 Tanjung Priok total tonnage forecast to grow 4.4% to 50.226mn tonnes, with average growth of 5.5% expected over our forecast period to 2017.
* 2013 Palembang total tonnage forecast to grow 3.0% to 11.261mn tonnes, with average growth of 3.9% over our forecast period.
* 2013 Tanjung Priok container throughput forecast to grow a strong 22.4% to 8.98mn twenty-foot equivalent units (TEUs), with average growth of 15.8% over our forecast period.
* 2013 Palembang container throughput forecast to grow 4.6% to 92,969TEUs, with average growth of 5.9% over our forecast period.

Key Industry Trends

Port Investment Plans Begin To Move Forward

A series of announcements suggest that long overdue investment in Indonesia's port infrastructure is beginning to move forward. State-owned port operator Pelindo III has announced US$634mn worth of investments in container terminals at Tanjung Emas (Semarang), Triskati (South Kalimantan) and Tanjung Perak, a new port scheduled to open in 2014. Sister company Pelindo II said it was investing US$72mn in works at Kalibaru (North Jakarta) and Sorong (West Papua). The government also says it is working on new seaport projects in Sumatra's East Jambi province.

ICTSI Strengthens Interest In Indonesia

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- Australia Shipping Report Q2 2013
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