• What Are the Challenges Faced by the Expanded B20 Biodiesel Program?

    What Are the Challenges Faced by the Expanded B20 Biodiesel Program?

    On 1 September 2018 the expanded B20 biodiesel program was launched. It means that the government of Indonesia requires all diesel fuel that is used within the country to contain biodiesel (with a 20 percent amount of bio-content, typically fatty acid methyl ester [FAME] that is derived from palm oil). This program will boost domestic palm oil consumption (which is important because palm oil exports are currently not doing too great amid low prices and anti-palm oil campaigns in various western countries), but more importantly the program aims to slash imports of fuel, hence encouraging a narrower current account deficit and a stronger rupiah. Meanwhile, the program also aims at reducing carbon emissions.

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  • Investment Climate: Jakarta Administration Revokes Principle Permits Island Reclamation Project

    Investment Climate: Jakarta Administration Revokes Principle Permits Island Reclamation Project

    On Wednesday 26 September 2018 the local Jakarta administration decided to revoke private developers’ principle permits for the development of 13 artificial islands (reclaimed islands) in the bay north of Indonesia's capital city of Jakarta. The decision was hardly a surprise. After Anies Baswedan was elected Governor of Jakarta in 2017 it was assumed that the end of the grand project was near.

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  • Manufacturing Growth Indonesia Slowed in September 2018

    Manufacturing Growth Indonesia Slowed in September 2018

    Manufacturing activity in Indonesia expanded in September 2018. However, the pace of growth slowed compared to the preceding month. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) declined from August's 26-month high of 51.9 to 50.7 in September (a reading of 50.0 separates contraction from expansion in the manufacturing sector).

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  • Jakarta Administration Revokes Principle Permits Reclaimed Islands

    Jakarta Administration Revokes Principle Permits Reclaimed Islands

    The local Jakarta administration has officially revoked principle permits for the development of 13 artificial islands (reclaimed islands) in the bay of Indonesia's capital city of Jakarta. For now, the decision means a complete stop to all activities related to the ambitious land reclamation project north of Jakarta.

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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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