• Sales of Trucks in Indonesia Continued to Decline in January

    Sales of trucks in Indonesia fell 30.2 percent year-on-year (y/y) to 5,555 units in January 2016 from 7,918 units in the same month one year earlier. This weaker sales figure indicates that the market for trucks in Indonesia remains subdued. According to the latest data from the Indonesian Automotive Industry Association (Gaikindo), sales of all types of trucks fell with the exception of heavy trucks. Heavy trucks, used for mining, agriculture and infrastructure development, rose slightly to 518 units in January 2016.

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  • Demand for Indonesian Crude Palm Oil Fell in January 2016

    Again, crude palm oil (CPO) shipments from Indonesia - the world's largest CPO producer and exporter - declined. Based on the latest data from the Indonesian Palm Oil Producers Association (Gapki), palm oil exports from Indonesia fell 16 percent on a month-on-month (m/m) basis to 2.1 million tons in January 2016. This decline was mainly caused by falling palm oil demand from the key export countries China and India.

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  • Indonesia Investments' Newsletter of 21 February 2016 Released

    On 21 February 2016, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as new rules regarding banks' net interest margin, an update on Indonesia's trade balance, interest rates, the 2016 State Budget, the coal industry, the cement industry, and more.

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  • Lower Net Interest Margin; Indonesian Banks' Shares Plunge

    Shares of Indonesian banks were hit hard on Friday (19/02) after Indonesia's Financial Services Authority (OJK) announced its plan to push state-owned banks net interest margin (NIM) to the range of 3 to 4 percent in a bid to lower the country's lending rates, hence boosting credit growth. NIM is the difference between interest income generated by banks and the amount of interest paid out to the lenders. A higher NIM implies that banks are more profitable. Currently, the average NIM for Indonesia's state-owned banks is between 7 - 8 percent.

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