• Infrastructure Indonesia: Balikpapan-Bontang Toll Road Update

    The Balikpapan-Samarinda toll road on the eastern coast line on the island of Kalimantan (in the province of East Kalimantan) will be extended to include the city of Bontang. During a visit to Balikpapan at the start of the week, Indonesian President Joko Widodo confirmed the extension plan. It implies that the project will more than double in length. The distance between Balikpapan and Samarinda is around 99 kilometers. However, from Samarinda further northeastwards to Bontang stretches across 116 kilometers.

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  • Motorcycle Sales ASEAN: Vietnam Threatens Indonesia's Position?

    Indonesia has the biggest motorcycle market within the ASEAN region. It is estimated that Indonesia accounts for 70 percent of total motorcycle sales in ASEAN. This implies that the slowdown in Indonesia's motorcycle sales has a big impact on overall sales in the region. Based on data from the ASEAN Automotive Federation (AAF), total motorcycle sales in ASEAN in the first ten months of 2016 fell 1.2 percent to 7.91 million from sales in the same period one year earlier.

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  • Indonesia Needs to Raise Efforts to Escape Middle Income Trap

    In order to escape the middle income trap (and become a high income country), the government of Indonesia needs to raise efforts to enhance the development of an inclusive economy by reforming the education and technology sectors as well as by combating social injustice. With a "business as usual" approach the government will not succeed in escaping this trap, says economist Faisal Basri. Indonesian society is currently highly unfair as 1 percent of the population controls 50.3 percent of the nation's total assets.

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  • Tax Revenue Indonesia 2017: Another Shortfall Expected

    The last time Indonesia's tax revenue realization achieved the government's target was in 2008. In the following 8 years, a widening tax shortfall occurred as the government's tax revenue target rose more rapidly compared to tax revenue realization. In the 2017 State Budget Indonesia targets to collect IDR 1,498.9 trillion (approx. USD $111 billion) in tax revenue, while - based on the historic trend - tax revenue realization may only reach IDR 1,200 - 1,300 trillion, implying another big shortfall.

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