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1 year ago

Challenges and Expectation in Indonesia’s Infrastructure

Challenges and Expectation in Indonesia’s Infrastructure

With so many infrastructure projects planned by the Indonesian government, a construction boom is anticipated. Expectations are high that the government spending will boost the economy this year – and in future years. Some of the planned infrastructure projects for the current five-year period (2014 - 2019) are 1000km of new toll roads, 2650 km of new paved roads, 46770km of road maintenance projects, and 195 new water reservoirs to increase the national rice production.

Axis Capital Group, a company which sells and rents capital equipment with its main office in Singapore has set up a branch in Jakarta, Indonesia and is being optimistic in the fast growth and expansion of the archipelago. Moreover, local production has also set up in the country, employing hundreds of citizens. Axis, along with these manufacturers and the government are being involved in countless of projects set within 2015-2020.


In addition the government will focus on increasing the capacity of mass transportation by building 15 new airports, 24 new seaports, and 3258km of railway in Java, Sumatera, Sulawesi, and Kalimantan.


In a review, the recently elected government in Indonesia intends to begin this year on a vast and desperately needed infrastructure programmed throughout the archipelago.


Over the next five years the government aims to build 5,500km of railways, 2,600km of roads, 1,000km of toll roads, 49 dams and 24 seaports, along with a number of power plants whose combined capacity will total 35,000MW.


The programmed will, in addition to needing foreign know-how and equipment, also bring challenges and opportunities to the members of the Indonesian Contractors’ Association (ICA), an organization that represents 130 contractors and suppliers.


Another challenged imposed to the industry is the worsening traffic congestion in the country’s capital with lots of complaints coming from thousands of commuter’s every day. This has greatly affected the business investments of Jakarta and the government now aims to resolve this issue.


Indonesia would greatly needs roads, bridges, seaports, airports and other infrastructural projects to support communications, and the government intends to begin by releasing the first projects for tender in the middle of this year.


The government is also aiming to attract further investment from the private sector through public-private partnerships (PPPs). This would include foreign investment, bringing with it foreign expertise and skills transfer.


The amount of money due to be injected into the national economy is so large that it is expected to nudge the construction industry’s contribution to the Gross Domestic Product, currently at 10%, up by at least a percentage point.

2 years ago

Axis Capital Group joins Mining Expo 2015

Axis Capital Group joins Mining Expo 2015

Axis Capital Group gets its plate full this year with heaps of events to attend to. Before attending in the Concrete Show South East Asia which will be held on the last week of October, Axis will first attend the 17th International Mining and Mineral Recovery exhibition and Conference on the 9th – 17th of September, 2015 at Kamayoran in Jakarta, Indonesia.


Ever since the event’s launched in 1998, International Mining Expo has been the only trade event that has all the major suppliers and potential customers in one venue. This show has become the key platform for established companies to promote products and equipment in the mining industry.


Last year, the exhibition highlighted the huge opportunities that exist in the mining sector in Indonesia. The show comprises two specific trade exhibitions: Mining and Construction Indonesia which has combined total of 26,000 attendees. With 19, 737 industry professionals, 787 exhibitors, 43 countries, 3 international group pavilion participants and 33, 428 sqm. of space, it is truly an affair to look forward to.


Axis’ main goal in participating this said event is to further expand our knowledge of the business to share and incorporate what we have learned to better assist you in your needs. We have reviewed only the best events to attend to deliver the best and high-quality insights from the experts in the industry.


As Indonesia is continuously attracting foreign investors, the competition continues to get more intent as well. Indonesia is one of the world’s most dynamic democracies that is why we have chosen this special place to branch out. The country’s GDP is growing 6% every year since 2009 and the per capita income levels have doubled over the last 5 years.  Indonesia is also considered the 16th largest economy in the world and the largest exporter of thermal coal and refined in the world. 17.3% of Indonesia’s vast natural resources including petroleum, gas, tin, nickel, copper, coal, goal and silver. The outburst of the mining industry has contributed to the increase of over a hundred working mines in the country in the past ten years. The Mining sector is important to Indonesia, as it is a significant provider of export earnings, economic activity and employment whilst supporting regional development.


The new Mining Law was introduced stating that all raw and semi-processed mineral ores are to be fully processed before export thus creating a renewed need for mining technology. Under the law, raw ore and semi-processed minerals with purity levels below the Government’s threshold can no longer be exported after 12 January 2014. However, so far very few Indonesian mining companies have arranged compliance with the obligation to set up processing plants to process their ore to the required standard set by the Government.


We are looking forward to enhance better services to you and deliver only the best products and equipment. The show attracts industry leaders and key players in the global mining industry; to showcase the latest products and services in one venue, the Jakarta International Expo. Rest assured that no fraud will be incorporated in our service and equipment.