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  • Manufacturing Industry Indonesia: Gov't Optimistic to See Growth

    Manufacturing Industry Indonesia: Gov't Optimistic to See Growth

    Over the past decades, Indonesia's manufacturing industry has developed from a significant growth engine (for the whole economy) into a less significant one. Prior to the Asian Financial Crisis in 1997-1998, non-oil & gas manufacturing accounted for 30 percent of Indonesia's gross domestic product (GDP). Today, however, the figure is around 18 percent. If we add the oil & gas industry, then the figure rises only slightly to 19.9 percent.

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  • Industrial Estates in Indonesia: Sales Rose in First Half 2017

    Industrial Estates in Indonesia: Sales Rose in First Half 2017

    Sales of industrial estates in Indonesia rose 33 percent year-on-year (y/y) in the first half of 2017. Sanny Iskandar, Chairman of the Industrial Estate Association (HKI), said sales of industrial land in the first half of this year reached 120 hectares. That figure exceeded total sales of 90 hectares in the same period one year earlier.

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  • Manufacturing Industry Indonesia in Need of Development

    Manufacturing Industry Indonesia in Need of Development

    The manufacturing industry of Indonesia is in need of a boost as its contribution toward Indonesia's gross domestic product (GDP) has declined from 28.0 percent to 20.8 percent of GDP over the past decade. An underdeveloped manufacturing industry gives rise to a fragile economy as Indonesia remains highly dependent on raw commodity exports and on the services industry. This causes problems in times of low commodity prices and Indonesians' weak purchasing power. Preferably, the manufacturing sector accounts for at least 35 percent of GDP.

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  • ICAEW: Productivity Indonesia's Human Resources Grows Strongly

    ICAEW: Productivity Indonesia's Human Resources Grows Strongly

    The productivity of Indonesia's human resources has improved markedly over the past 15 years. This is one of the conclusions mentioned in the latest Economic Insight: South East Asia, released by the Institute of Chartered Accountants in England and Wales (ICAEW). This quarterly report focuses on the economic trends in the largest economies of the ASEAN countries. Vietnam and Indonesia are the top performers in terms of productivity growth (growth of the average output per worker) supported by the ongoing shift from agriculture to more capital-intensive sectors (manufacturing and the service industries).

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  • Indonesia's Manufacturing Industry Recovering in 2016?

    Indonesia's Manufacturing Industry Recovering in 2016?

    Despite having contracted for 17 straight months, there has emerged optimism that Indonesia's manufacturing industry will rebound in 2016. Yesterday (01/03), Markit Economics announced that the Indonesia Manufacturing Purchasing Managers' Index (PMI) showed a reading of 48.7 in February 2016, slightly down from a reading of 48.9 in the preceding month (a reading below 50 signals contraction). According to Markit economist Pollyanna De Lima Indonesia's manufacturing sector continues to show a recovering trend, despite the soft decline in February.

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  • Manufacturing Industry Indonesia Expected to Grow 5.7% in 2016

    Manufacturing Industry Indonesia Expected to Grow 5.7% in 2016

    Indonesia's Ministry of Industry is optimistic that the country's manufacturing industry will grow 5.7 percent (year-on-year) in 2016, up from the estimated 5.3 percent growth pace this year. Indonesian Minister Saleh Husin said this optimism is based on higher domestic direct investment. Domestic investment realization in Indonesia's industry sector rose 7.45 percent (y/y) to IDR 20.1 trillion (approx. USD $1.5 billion) in the third quarter of 2015 from IDR 18.7 trillion in the same quarter last year. Foreign direct investment (FDI) into Indonesia's industry sector stood at USD $3.15 billion in Q3-2015.

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  • Indonesia’s Non-Oil & Gas Manufacturing Industry Grows 5.49%

    Growth of Indonesia’s non-oil and gas manufacturing industry in the first half of 2014 reached 5.49 percent (year-on-year) and thus outpaced the country’s general economic growth of 5.17 percent (yoy) over the same period. Indonesia’s manufacturing industry growth was particularly supported by growth in a number of sectors: Food, Drinks and Tobacco (+9.62 percent), Wood and Other Forest Products (+6.35 percent), Transportation Equipment Industry and Machinery (+4.52 percent), and Other Industrial Products (+15.77 percent).

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  • Bank Indonesia and World Bank: How to Escape the Middle Income Trap?

    Bank Indonesia and World Bank: How to Escape the Middle Income Trap?

    The Governor of Indonesia’s central bank (Bank Indonesia), Agus Martowardojo, said that the Indonesian economy can grow more than six percent provided that several important structural reforms will be implemented in order to avoid the middle income trap. This trap occurs when rapidly growing economies stagnate at middle-income levels for many years, thereby failing to reach a high income level (as has been the case with Brazil, Mexico, South Africa and other middle income countries from the early 1980s to the mid-2000s).

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  • Manufacturing Industry of Indonesia also Expected to Slow in 2014

    The Indonesian government revised down its target for the country's manufacturing growth in 2014 to 6 percent year-on-year (yoy) from 6.4 to 6.8 percent (yoy) previously. Main reason for the downgrade was the lower than expected GDP growth result in the first quarter of 2014. Earlier this week, Statistics Indonesia announced that the Indonesian economy expanded 5.21 percent in Q1-2014, the slowest quarterly growth pace since the fourth quarter of 2009. Last year, Indonesia's manufacturing sector grew 6.19 percent (yoy).

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  • Indonesia's Unemployment Rate Rises Slightly in August 2013

    Indonesia's unemployment rate rose slightly in August 2013 from the same month last year. The country's open unemployment rate rose from 6.14 percent to 6.25 percent (of the total labour force). In absolute numbers this translates to 7.4 million jobless Indonesians. Head of Statistics Indonesia, Suryamin, said that Indonesia's slowing economic growth was the main reason for the rise in unemployment, while the supply of human resources increased. In the third quarter of 2013, Indonesia's GDP growth fell to 5.62 percent (yoy).

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Artikel Terbaru Industry

  • Widodo Launches Roadmap for Industry 4.0: "Making Indonesia 4.0"

    Widodo Launches Roadmap for Industry 4.0: "Making Indonesia 4.0"

    The Indonesian government officially launched the roadmap called "Making Indonesia 4.0" earlier this week. Industry 4.0 is a term that refers to the fourth industrial revolution in manufacturing and industry. It includes major innovations in the digital technology, biology and hardware automations, and also implies that cyber-physical systems can make their own basic decisions, hence becoming increasingly self-ruling.

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  • Business Scale Classification for Industrial Companies Regulated

    Business Scale Classification for Industrial Companies Regulated

    On July 7, 2016, the Ministry of Industry issued regulation number 64/M-IND/PER/7/2016 on the Total Number of Employees and Investment Values for the Industrial Business Scale Classification (2016 Regulation). The 2016 Regulation is an implementation of article 102 (4) of Law number 3 of 2014 on Industries, which states “The amount of labor and the value of the investment for small scale industry, medium scale industry, and large scale industry is determined by the Minister”. In this column we will discuss the contents of the 2016 Regulation.

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  • Direct Sales to End Users by PT PMA Manufactures in Indonesia

    Direct Sales to End Users by PT PMA Manufactures in Indonesia

    The Indonesian government has set several restrictions for foreign PT PMA Companies to sell and distribute products to end users. In this column we will discuss the ability of PT PMA Manufacturers to sell goods directly to other manufacturers. These products include for instance industrial machinery and complementary goods. However, a PT PMA manufacturer can only under certain conditions sell goods directly to other manufacturers.

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  • Import Goods into Indonesia for Marketing Testing and After Sales

    Import Goods into Indonesia for Marketing Testing and After Sales

    Basically manufactures in Indonesia can only import goods which they need for their own production process. Examples of such products are machinery, raw materials and supporting materials, which the manufacturing company uses to support its production process. However, there is an exception to this general restriction. Besides goods which are required for its own production, the manufacturer can import complementary goods, goods for after sales and goods for market testing. In this column we take a further look into the import procedure of these goods into Indonesia.

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  • Fast Investment Procedure Foreign Investment Companies

    Fast Investment Procedure Foreign Investment Companies

    The new BKPM (investment body) Regulation number 14 of 2015 regarding the Guidelines and Procedures for the Investment Principle Permit (New BKPM Regulation) sets a new special fast investment procedure for specific foreign investment companies. Under the fast investment procedure companies are able to obtain their investment license within 3 hours as of submission of the application. This procedure is however only open for large investments in Indonesia. In this column we will discuss the requirements for the fast Investment procedure.

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  • Growth in Indonesia’s Manufacturing Sector Revised Down

    Growth of the manufacturing industry in Indonesia is expected to be significantly weaker in 2015 than initially forecast. Indonesia’s Industry Ministry cut its 2015 forecast for expansion of the country’s manufacturing industry to 6.1 percent (year-on-year) from the previous estimate of 6.8 percent. In tandem with slowing economic growth in Southeast Asia’s largest economy, manufacturing growth has slowed to 4.99 percent (y/y) in Q3-2014. Moreover, the HSBC/Markit PMI contracted to a record low of 48.0 in November 2014.

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  • Depreciating Rupiah Impacts on Indonesian Manufacturing Industry

    Depreciating Rupiah Impacts on Indonesian Manufacturing Industry

    Although the Indonesian rupiah exchange rate appreciated 0.86 percent to IDR 11,995 per US dollar on Friday (27/06) as economic data from China, South Korea and Taiwan sparked optimism that regional growth has picked up, the recent depreciating trend of Indonesia’s currency burdens the country’s manufacturing industry. This industry is still dependent on imports of raw materials, capital goods and auxiliary materials, which are paid using US dollars causing the domestic industry to feel the financial impact of a weaker rupiah.

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  • Indonesia Manufacturing PMI Contracts Sharply in August 2013

    Indonesia Manufacturing PMI Contracts Sharply in August 2013

    HSBC's latest release of the Indonesia Manufacturing PMI did not paint a positive picture as Indonesia's manufacturing activity was reported to have contracted sharply in August 2013. The index declined to a 15-month low amid a contraction of output, new orders and export business. Payroll numbers fell at the fastest rate in the history of the HSBC survey. The August index stood at 48.5, down from 50.7 in July 2013, and marks the fourth consecutive month of decline. A reading below 50.0 indicates a contraction in manufacturing activity.

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  • Indonesia Consumes more Electricity but Investments still Needed

    State-owned electricity provider Perusahaan Listrik Negara (PLN) stated that consumption of electricity in Indonesia grew 7.2 percent to 90,48 terawatt hour (twh) in the first six months of 2013 compared to the same period last year. Head of PLN's Commercial Division, Benny Marbun, explained that Indonesia's industrial sector particularly consumed more electricity. Although industrial customers of PLN only grew by 4.5 percent in Semester 1-2013 (YoY), industrial electricity consumption grew 8.3 percent (YoY).

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  • World Bank Revises Down Forecast for Indonesia's Economic Growth to 5.9%

    World Bank Projection Indonesia Investments

    The World Bank has revised down its forecast for economic growth in Indonesia in 2013 to 5.9 percent from its original estimate of 6.2 percent. Similarly, the institution has altered its forecast for economic growth in 2014 from 6.5 percent to 6.2 percent. The revised figures were published in July's edition of the Indonesia Economic Quarterly (IEQ), titled 'Adjusting to Pressures'. The World Bank's forecast is also in sharp contrast with the GDP assumption of the Indonesian government, which puts economic growth in 2013 at 6.3 percent.

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