Presidential Regulation No. 20/2018 on the Use of Foreign Workers continues to be a controversial regulation. In essence the new regulation aims at simplifying the permit application process for foreign workers, hence making the process more efficient and faster. As a result, foreign direct investment (FDI) realization in Indonesia should rise, thus encouraging overall economic growth in Southeast Asia's largest economy.

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Indonesia's Agriculture Ministry expects the nation's coffee production to reach 674,636 tons in 2018, up a modest 0.9 percent year-on-year (y/y) from Indonesia's coffee production in 2017 (668,677 tons). If the ministry's estimate is correct, then it would be the second straight year of meager coffee production growth. From 2016 (when Indonesia produced a total of 663,871 tons) to 2017, growth of coffee production reached 0.7 percent (y/y).

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The local elections that are held tomorrow (Wednesday 27 June 2018) are regarded a run-up to Indonesia's 2019 legislative and presidential elections. Tomorrow's results are a barometer to measure the political mood in the country with regard to next year's elections. After all, residents in the nation's four most populous provinces - West Java, East Java, Central Java, and North Sumatra - will visit the ballot boxes to vote for new governors. In total, 17 governors, 39 mayors and 115 regents will be elected across Indonesia on Wednesday.

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There are signs that household consumption in Indonesia is rebounding ahead of this year's Idul Fitri holiday. This would be a great boost for Indonesia's overall economic growth as private consumption accounts for around 57 percent of the nation's total economic growth. One of the reasons why Indonesia's gross domestic product (GDP) growth has been stuck around the 5 percent (y/y) mark in recent years is subdued household consumption (which has fallen slightly below the 5 percent y/y mark).

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