• Moody's Investors Service Keeps Indonesia's Credit Rating at Baa3

    New York-based Moody's Investors Service kept Indonesia's sovereign credit rating at Baa3 (stable outlook), the lowest level within the investment grade rating. Although the rating agency is positive about the strong nature of Indonesia's economy and the prudent fiscal policy that is safeguarded by the Indonesian government and central bank, it sees few room for an upgrade soon (to Baa2) as government revenue is not expected to rise significantly in the period ahead. Moody's released this statement on Thursday (28/01).

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  • Indonesia Stock Market Update: IPOs and Free Float Regulation

    There are seven companies that are expected to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in the first quarter of 2016: Buyung Poetra Sembada, Summarecon Investment Property, Mahaka Radio Integra, Cikarang Listrindo, Mitra Pemuda, Ciputra Residence, and Bank Ganesha. In total, the IDX targets to see 35 new listing on the IDX in 2016. Indonesian lender Bank Artos Indonesia was the first company to be added to the IDX in 2016.

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  • Indonesia's Clove Production in 2016 Stagnant

    Indonesian clove farmers are optimistic that the nation's clove production in 2016 will be similar to last year's production realization in the range of 100,000 to 110,000 tons, provided that the weather is good and there will be no excessive rainfall. I Ketut Budiman, Secretary General of the Indonesian Clove Farmers Association (APCI), said Indonesia's clove farmers will not raise their production target in order to maintain clove prices at profitable levels. Currently, the clove price at the farmer level is IDR 100,000 (approx. USD $7.19) per kilogram, while farmers' production costs are estimated at IDR 75,000 per kg.

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  • Indonesia's 9th Economic Stimulus Package: Logistics Costs

    The government of Indonesia unveiled its ninth economic stimulus package on Wednesday (27/01) in an effort to boost the nation's economic growth. The ninth package aims to combat Indonesia's high logistics costs hence improving competitiveness of domestic industries while making Indonesia's investment climate more attractive. It is estimated that Indonesia's logistics costs are equivalent to around 25 percent of the nation's gross domestic product (GDP), among the highest in the ASEAN region.

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