• Foreign Direct Investment Growth in Indonesia Slowed in Q4-2016

    Indonesia's Investment Coordinating Board (BKPM) has released the direct investment figures - both foreign direct investment (FDI) and domestic direct investment (DDI) - for the fourth quarter of 2016 (implying we now also know the full-year 2016 figures). The BKPM data show a number of interesting developments that we outline below.

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  • Trump & Indonesia: 6-Star Bali Hotel Project Meets Resistance

    Together with Indonesian business partner Hary Tanoesoedibjo, the Trump Organization, which was ran by US President Donald Trump between 1971 and 2017, plans to build the biggest and most luxurious hotel on the Indonesian resort island of Bali, complete with an upgraded golf course and ocean view (which includes a view on the 16th century Hindu pilgrimage temple Pura Tanah Lot). However, this USD $1 billion (six-star) resort project met resistance from the local population.

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  • Thailand's Kasikornbank Interested to Acquire Bank in Indonesia

    Kasikornbank, the fourth-largest bank in Thailand, expressed its intention to acquire a bank in Indonesia. However, in line with the content of the ASEAN Banking Integration Framework, this plan cannot be carried out rapidly. Meanwhile, Indonesia's Financial Services Authority (OJK), which regulates and supervises the financial services sectors in Indonesia, only allows a foreign investor to acquire a majority-stake in small Indonesian banks (categorized under the BUKU 1 system) provided the foreign investor purchases two (small) banks and merge these into one entity.

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  • Tobacco Advertising on Television Banned in Indonesia?

    Commission I of Indonesia's House of Representatives (DPR) plans to revise Law No. 32/2002 on Broadcasting by adding a full ban on the advertisement of tobacco-related products on television and radio. Indonesia's tobacco industry, a massive industry in Southeast Asia's largest economy, objects to this plan. This ban would also have a big affect on government revenue (excise duties on cigarettes are a key source of government revenue) as well as on revenue generated by media institution because tobacco companies are the fifth-largest advertiser in Indonesia.

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