• Investments in Indonesia Expected to Exceed IDR 100 Trillion in Q1-2014

    Mahendra Siregar, Head of the Indonesia Investment Coordinating Board (BKPM) is optimistic that realized investment in Indonesia can reach over IDR 100 trillion (USD $8.6 billion) in the first quarter of 2014, particularly supported by foreign direct investment (FDI) in the country's automotive and electronics sectors. Siregar uttered his optimistic view at the groundbreaking of the new Toyota factory in Karawang (West Java) on Tuesday (25/02). Foreign investors remain buoyant on the potential of Indonesia's rapidly expanding consumer force.

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  • Jakarta’s Soekarno-Hatta International Airport World’s 8th Busiest Airport

    Airport Council International (ACI), the only global trade representative of the world's airports, stated that Indonesia’s Soekarno-Hatta International Airport, located just outside the capital city of Jakarta, has climbed one spot and is now ranked the world’s 8th busiest airport in terms of passenger numbers (over the year 2013) and was the 4th busiest airport in the Asia Pacific after Beijing Capital International Airport, Haneda International Airport (Tokyo), and Dubai International Airport.

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  • Government of Indonesia Plans to Raise Royalties for Coal Miners

    Indonesia's Ministry of Energy and Mineral Resources plans to set royalties for all types of coal at 13.5 percent (of net sales) as part of a revision of Government Regulation No. 9 - 2012 on Tariff and Types of Non-Tax Revenue. Currently, the percentage of royalty depends on the quality of the coal that is extracted as well as the type of permit that is issued to the coal miner. Apart from higher coal royalties, the Indonesian government also proposes a windfall profits tax in case there is a sharp upward price correction.

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  • What about Indonesia's Domestic Consumption in 2014?

    Recently, Statistics Indonesia (BPS) released various data in the context of Indonesia's gross domestic product (GDP). Economic expansion of Southeast Asia's largest economy slowed to 5.78 percent (year-on-year) in 2013. Household consumption accounted for the largest share of Indonesia's GDP (55.8 percent) and continued to grow significantly (5.28 percent yoy) in 2013. This consumer force is one of the main reasons why many foreign companies enter and expand their businesses in Indonesia.

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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
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