Latest Today's Headlines

Moody’s Assigns (P)Baa3 Rating to Indonesia’s Samurai Bonds

Moody’s Assigns (P)Baa3 Rating to Indonesia’s Samurai Bonds

The Samurai (yen-denominated) bonds that are to be issued by the Indonesian government (through private placement) received a provisional rating of (P)Baa3 (stable outlook) from Moody’s Investors Service. Part of the Samurai bonds to be used by the government are without guarantees from the Japan Bank for International Cooperation (JBIC). It will be the first time for Indonesia to issue unguaranteed Samurai bonds since 1983 and thus the issuance serves as a test to measure Japanese investors’ confidence in Indonesian assets.

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Latest Today's Headlines

What Factors Influence Indonesian Stocks & Rupiah on Tuesday?

What Factors Influence Indonesian Stocks & Rupiah on Tuesday?

There are still persistent external and internal factors that make it difficult for Indonesian stocks to rise. By 12:07 am local Jakarta time, Indonesia’s benchmark stock index (Jakarta Composite Index) was down 0.25 percent to 4,788.37 points. Meanwhile, the rupiah had appreciated 0.36 percent to IDR 13,462 per US dollar by the same time according to the Bloomberg Dollar Index. What are the external (foreign) and internal (domestic) factors that influence the performance of Indonesian assets on today’s trading day (04/08)?

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Today's Headlines

Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

Inflation in Indonesia accelerated more than expected in July 2015. Based on the latest data from Statistics Indonesia (BPS), Indonesian inflation rose 0.93 percent (m/m) in July, primarily due to higher food and transportation costs caused by the Ramadan month and Idul Fitri celebrations. During this month, the people traditionally increase consumer spending (triggering higher food prices) and millions of people travel back to their places of origin for the Idul Fitri festivities (triggering higher transportation costs).

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Financial Column

Corporate Earnings Reports Indonesian Companies First Half of 2015

Corporate Earnings Reports Indonesian Companies First Half of 2015

A selection of corporate earnings reports (covering net profit and revenues in the first half of 2015) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX) is presented by Indonesia Investments below. The companies are categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment.

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News Column

Employing Expatriates in Indonesia: Company Obligations

Employing Expatriates in Indonesia: Company Obligations

In of our previous columns we have described the restrictions to companies that are employing expatriates. In this week’s column we deepen the required actions that must be taken by companies that are employing expatriates. Indonesian Law number 13 of 2003 regarding Manpower (Labor Law) and its implementing regulations set several obligations towards companies which are allowed to hire foreign workers.

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News Column

Currency Update: Why Indonesia’s Rupiah Touches a 17-Year Low

Currency Update: Why Indonesia’s Rupiah Touches a 17-Year Low

The Indonesian rupiah touched a 17-year low as the currency continued to depreciate amid persistent bullish US dollar momentum. The rupiah weakened to IDR 13,539 per US dollar according to the Bloomberg Dollar Index on Friday (31/07). The US Commerce Department announced on Thursday (30/07) that US gross domestic product (GDP) expanded at 2.3 percent (year-on-year) in the second quarter of 2015, giving rise to heightened expectation that the US Federal Reserve will raise its key interest rate soon.

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Featured Column

Indonesia’s Current Account Deficit Explained: Why, What, When & How?

Indonesia’s Current Account Deficit Explained: Why, What, When & How?

Since late 2011 Indonesia has been plagued by a structural current account deficit (CAD) that has worried both policymakers and (foreign) investors. Despite Indonesian authorities having implemented policy reforms and economic adjustments in recent years, the country’s CAD remains little-changed in 2015. The World Bank and Bank Indonesia both expect the CAD to persist at slightly below 3 percent of the nation’s gross domestic product (GDP) in 2015, alarmingly close to the boundary that separates a sustainable from an unsustainable deficit.

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Featured Column

What You Need to Know about Indonesia’s Palm Oil Export Levies

What You Need to Know about Indonesia’s Palm Oil Export Levies

Indonesian government officials announced that the recently-unveiled palm oil export levies will be imposed starting from Thursday (16/07). The new rules require that a USD $50 per metric ton levy is imposed on crude palm oil (CPO) exports, and a USD $30 per metric ton levy is imposed on exports of processed palm oil products. These palm oil export levies only need to be paid by exporters when the government’s reference CPO price falls below USD $750 per metric ton, effectively cutting the palm oil export to zero.

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Featured Column

R.M.A. van der Schaar Business Consultant

Analysis Indonesia’s Property Market; Overview & Foreign Ownership

The residential property sector of Indonesia remains attractive in 2015 despite several factors having managed to slow growth over the past two years. In this column I discuss the factors that have slowed growth in Indonesia’s property sector and how Indonesian authorities (such as the central bank and Financial Services Authority) responded to these challenges through new regulations. Lastly, I provide an update on the recently announced plan of the Indonesian government to allow foreign ownership of luxurious apartments.

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With its vast archipelago Indonesia has an enormous potential for durable economic growth. Indonesia-Investments follows this development closely and intends to participate, cooperating in projects with local entrepreneurs or the Indonesian government. One of our values is that the process of economic development should lead to increasing welfare and prosperity for the population as a whole. This will be given continuous consideration. Apart from focusing on Indonesia as an emerging market through its finance and business model, we also engage in the study of its cultures and history in order to gain inter-cultural understanding.Current events are projected in our news section.