• Not Enough Coal Reserves to Supply Indonesia's 35,000 MW Power Program?

    The Indonesian Coal Mining Association (APBI) advises the central government to recalculate the amount of coal required for Indonesia's 35,000 MW power plant program. According to APBI, Indonesia does not have enough coal reserves to serve as power source for this ambitious program. The program, launched by President Joko Widodo in 2015, aims to add a total of 35,000 MW to the nation's power capacity by 2019 (about 20,000 MW being coal-fired plants). PriceWaterhouseCoopers states that Indonesia may have depleted its coal reserves by the year 2033.

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  • Indonesia Records Biggest-Ever Islamic Bonds (Retail Sukri) Sale

    As predicted, demand for Indonesia's sharia-compliant government retail bonds (Sukuk Negara Ritel, abbreviated Sukri) remains strong and is growing. In fact, Indonesia's Finance Ministry released a statement on Monday (07/03) that said Southeast Asia's largest economy recorded its biggest ever sale of Sukri bonds. Between 19 February and 4 March 2016 Indonesia offered the three year SR-008 Islamic bond series (carrying a fixed coupon of 8.3 percent per year), raising IDR 31.5 trillion (approx. USD $2.4 billion).

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  • FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    Japanese companies remain committed to invest in Indonesia - particularly into infrastructure, power and manufacturing - according to the Kansai Economic Federation (Kankeiren), one of Japan's private, non-profit representative economic organizations. Kankeiren Chairman Shosuke Mouri met Indonesia's Chief Economics Minister Darmin Nasution on Monday (07/03) in Jakarta. Japan is one of the biggest investors in Indonesia. During the period 2010-2015 the country invested a combined total of USD $14.9 billion in Indonesia.

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  • Palm Oil Industry Indonesia: CPO Prices Rise on El Nino Drought

    The crude palm oil (CPO) price continues to rise supported by the impact of the El Nino weather phenomenon. El Nino causes a dry spell in Southeast Asia, home to the world's largest palm oil plantations. As a result, CPO inventories in Malaysia may have declined to 2.11 million tons, an 11-month low in February 2016. Meanwhile, Singapore-based agribusiness trader Olam International Ltd said CPO stocks will decline to the range of 1.5 - 2.0 million tons in the second quarter of 2016. Obstacles to higher CPO prices are Malaysia's strengthening ringgit (which curtails demand for Malaysian palm oil) and attractive prices of soybean oil.

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