Presidential Regulation No. 20/2018 on the Use of Foreign Workers continues to be a controversial regulation. In essence the new regulation aims at simplifying the permit application process for foreign workers, hence making the process more efficient and faster. As a result, foreign direct investment (FDI) realization in Indonesia should rise, thus encouraging overall economic growth in Southeast Asia's largest economy.
20 September 2019 (closed)
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Jakarta Composite Index (6,231.47) -13.00 -0.21%
Has been fascinated by Indonesian cultures and history since the very first time he stepped foot on Indonesian soil in mid-1998, just one month after Indonesia's second president, Suharto, stepped down from office at a time when the Asian Crisis ravaged through the country. He decided to do his Bachelor and Masters degrees in Southeast Asian Studies at Leiden University (the Netherlands) with a major focus on Indonesian society, history and linguistics. After successfully finishing his MA degree he taught Indonesian languages and cultures at a local university, while realizing the economic potential of the country in a world where the economic gravity point is shifting to the East. With having had a profound training in Indonesia's macroeconomic history at university, he started to delve into the contemporary economic condition of the country and through frequent visits to Indonesia established a network with businesses and government circles.
"One of the most important aspects of doing business in Indonesia is to comprehend Indonesia's culture of business."
|Institute||Business Consultant Indonesia Affairs|
|Position|| Owner | Director
|Expertise||Macroeconomy | Cultural Studies | History|
Columns of R.M.A. van der Schaar
This week two domestic events need to be carefully watched by those who invest in Indonesian assets: (1) the local elections that are scheduled for Wednesday 27 June, and (2) Bank Indonesia's monthly policy meeting that is scheduled for 27-18 June. Lets take a closer look at these events.
Indonesia's 2019 presidential election is likely to become another battle between incumbent President Joko Widodo (Jokowi) and Gerindra party Chairman Prabowo Subianto. Both men had already been engaged in a fierce contest in 2014, one that was only narrowly won by Jokowi. On Wednesday evening (11/04) Subianto formally accepted the mandate of the Gerindra party to compete as presidential candidate in the 2019 presidential election (scheduled for 17 April 2019).
Indonesian Minister of Home Affairs, Tjahjo Kumolo, made a statement in support of the Lippo Group's controversial Meikarta integrated township project. At the Indonesia Future City & REI Mega Expo 2017 on Thursday (14/09) Kumolo said Indonesia's regional governments should not unnecessarily obstruct private projects that help to develop the regional economy. He cited Meikarta as an example.
Overall, market participants are satisfied with Indonesia's economic growth in the first quarter of 2017. Indonesia's Statistics Agency (BPS) released the nation's official first quarter gross domestic product (GDP) data on Friday (05/05). It showed a 5.01 percent year-on-year (y/y) growth pace in Q1-2017, in line with - and even above some institutions' - expectations. Moreover, the figure confirms that Indonesia's economic growth continues to accelerate. In the first quarters of 2015 and 2016 GDP growth was recorded at 4.71 percent (y/y) and 4.92 percent (y/y), respectively.