An interesting story was released on Bloomberg Markets Asia on Wednesday (29/03) about the sliding role of commodities in the Indonesian economy and the need for Southeast Asia's largest economy to find a new growth engine (or better: several new growth engines) that will take the country to economic growth levels of +7 percent year-on-year (y/y) as once pledged by Indonesian President Joko Widodo during his presidential campaign in 2014.
The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Indonesia's largest supplier of crude palm oil (CPO), Astra Agro Lestari, is expected to see improving corporate earnings in the years ahead on the back of the rising CPO price and expectation of the company's climbing CPO production volume. The year 2016 was a good year for Astra Agro Lestari as it reported a 224.2 percent year-on-year (y/y) jump in net profit and a 7.6 percent (y/y) increase in sales, led by sales of CPO and derivative products. This was a great recovery from the preceding year. CPO and derivative products account for more than 86 percent of the company's total sales.
The full-year 2016 corporate earnings of Unilever Indonesia, one of the largest consumer goods producers in Indonesia (if not the largest), were in line with analysts' estimates, supported by higher sales - both in terms of volume and prices. Unilever Indonesia's sales rose 11.4 percent year-on-year (y/y) to IDR 40.05 trillion (approx. USD $3.0 billion), while net profit rose 9.2 percent (y/y) to IDR 6.39 trillion (approx. USD $480 million) in 2016.
Recently the Supreme Court of Indonesia issued regulation number 13 of 2016 regarding the Settlement Procedures of Corporate Crimes (New Regulation). The New Regulation aims to set guidelines for settlement of corporate crime. The New Regulation’s objective is to tighten law enforcement on corporate crimes. In this column we discuss the scope of liability in corporate crimes, representation during proceedings and penalties.
The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.