• What Explains Current Declining Business Confidence in Indonesia?

    According to the latest Grant Thornton International Business Report (IBR), released on 26 June 2014, confidence of Indonesian businesses regarding the country’s economy as well as business environment experienced a significant decline in the second quarter of 2014 from a net balance of 78 percent¹ in the previous quarter to 48 percent. However, despite this decline, optimism amongst Indonesian business owners is still ahead of the global average at 46 percent. Indonesia is ranked fourteenth among the 34 surveyed economies.

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  • Corporate Corruption in Indonesia: the Case of Cipaganti Karya Guna Persada

    The director of Indonesian publicly listed company Cipaganti Citra Graha, Andianto Setiabudi, together with chairwoman Julia Sri Redjeki and commissioner Yulinda Tjendrawati have been named suspects in a new embezzlement case by the West Java police. The three people are accused of embezzling funds and equity from the Cipaganti Karya Guna Persada cooperative. More than 8,700 people had invested a minimum amount of IDR 100 million (USD $8,333) in the cooperative’s profit sharing program (for a return of 1.5 percent per month).

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  • Palm Oil Exports from Indonesia Expected to Rise 15% in 2nd Half 2014

    The Indonesian Palm Oil Association (Gapki) expects that Indonesian exports of crude palm oil (CPO) and palm oil derivatives will increase between 10 and 15 percent to 11.29 million tons in the second half of 2014 from 9.82 million tons in the first half of this year. If achieved, then total CPO exports (and derivatives) from Southeast Asia’s largest economy in 2014 would be 21.11 million tons. Assuming an average CPO price of USD $895 per ton, these exports can be worth USD $18.89 billion in total.

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  • Economy of Indonesia: Government Targets GDP Growth of 5.8% in 2015

    The Indonesian government is optimistic that the country’s economic growth will accelerate to 5.8 percent (year-on-year) in 2015 from an expected growth pace of 5.5 percent in 2014. The key to next year’s improved gross domestic product (GDP) growth of Indonesia is the higher forecast for global economic growth. In 2015, the world economy is estimated to grow 3.9% (yoy), higher than the outlook for this year’s growth at 3.6 percent. As such, the government’s outlook is in line the central bank’s GDP growth forecast in the range of 5.4 to 5.8 percent.

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