The automotive industry is among the hardest-hit industries amid the coronavirus (COVID-19) crisis. In May 2020, when social and business restrictions were still very strict in places like Jakarta, car sales (wholesales; from the factories to the dealers) plunged 95.8 percent year-on-year (y/y) to 3,551 cars. Meanwhile, retail car sales dropped 96.1 percent (y/y) to 17,083 vehicles in May 2020. Never before had the Association of Indonesian Automotive Manufacturers (or Gaikindo) recorded such weak car sales figures.
Update COVID-19 in Indonesia: 4,248,165 confirmed infections, 143,545 deaths (06 November 2021)
28 November 2021 (closed)
Jakarta Composite Index (6,561.55) -137.79 -2.06%
USD/IDR (14,146) -6.00 -0.04%
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The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Indonesia’s digital economy is very promising. Near the end of 2019, Google and Singaporean wealth fund Temasek revised their projection for Indonesia's Internet economy (upwards) to reach USD $133 billion, in total value, by 2025. This would be a big jump from the value of around USD $40 billion in 2019.
The COVID-19 outbreak has continued to impact digital media consumption worldwide. Internet platforms, such as e-commerce, now play a pivotal role in our daily lives. On the bright side of current situations, e-commerce is growing all over the world, including in Indonesia. This is because behavioral shifts amongst Indonesians to choose online platforms as their safest place to conduct their daily activities, such as shopping, working or just meeting with some friends.
Whenever Indonesia Investments discusses or illustrates the risks that are involved in Indonesia’s investment environment, we usually take the 2009 Mining Law as an example to illustrate the lack of legal certainty in Indonesia. Lack of legal certainty is one the key obstacles in Indonesia’s investment environment, and has therefore been undermining investment realization in Indonesia.
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.