• Indonesian Motorcycle Sales Expected to Remain Weak in 2015

    Amid Indonesia’s economic slowdown, the country’s motorcycle sales are most likely to decline in 2015. In the first eight months of 2015 a total of 4,218,089 motorcycles were sold in Southeast Asia’s largest economy, down 21.1 percent (year-on-year) from the same period last year. However, there is one positive fact regarding Indonesia’s motorcycle sales. In August 2015, a total of 622,089 motorcycle units were sold, the highest monthly sales figure since October 2014 and the first monthly growth after seven straight months of decline.

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  • Indonesia Introduces Tighter Regulations Regarding Tax Deductible Interest Payments

    Starting per 1 January 2016, Indonesian companies’ interest payments to lenders are no longer considered tax deductible in case the company’s debt amounts to over four times its equity. Indonesian Finance Minister Bambang Brodjonegoro said such a tighter regulation regarding corporate debt financing will make it less attractive for local companies to accumulate debt, while strengthening the company's equity structure.

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  • Fed Fund Rate Hike Delay: What is the Impact on Indonesian Stocks & Rupiah?

    After the Federal Reserve announced that it kept its key interest rate at the historically low level of 0.0-0.25 percent at the September policy meeting, most of Asia’s emerging market stocks were up on relief that their currencies are not to depreciate heavily (yet) due to the looming rate hike. Yesterday (17/09), the US central bank said it postponed further monetary tightening due to weakness in the global economy, unsettled financial markets, and low US inflation. However, a Fed Fund Rate hike is still likely to occur before the year-end.

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  • Paket Kebijakan Ekonomi: Pemerintah Indonesia Merevisi Pajak Barang Mewah untuk Rumah

    Sejalan dengan paket kebijakan ekonomi yang baru-baru ini diumumkan, Menteri Keuangan Bambang Brodjonegoro mengatakan bahwa Pemerintah berencana untuk merevisi kebijakan pajak barang mewah untuk rumah. Saat ini, rumah-rumah bernilai lebih Rp 2 miliar dikenai pajak barang mewah 20%. Pemerintah kini berencana untuk menaikkan batasannya menjadi Rp 10 miliar. Pajak barang mewah Indonesia diperkenalkan oleh rejim Orde Baru Suharto dalam rangka membatasi kesenjangan sosial dalam masyarakat Indonesia.

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