• Pharmaceutical Industry Indonesia: Plagued by Weak Rupiah

    Companies active in the pharmaceutical industry of Indonesia need to find strategies to overcome sharp rupiah depreciation. Indonesia’s pharmaceutical industry is still - to a large extent - dependent on the import of raw materials, hence a weakening rupiah raises the costs of imports thus eroding profit margins. Since May 2013, when the US Federal Reserve started to hint at monetary tightening, the US dollar has experienced bullish momentum. Between the May 2013 and July 2015, the rupiah depreciated around 37 percent against the US dollar.

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  • New Expatriate Regulation Indonesia further Tightens Rules

    On June 29, 2015, the Minister of Manpower (Minister) issued regulation number 16 of 2015 on the Procedures to Employ Expatriates (New Expatriate Regulation), which revokes the old regulation number 12 of 2013 (Old Regulation). The New Expatriate Regulation impacts expatriates who are planning to work in Indonesia and who are already working in Indonesia and the local companies employing the expatriates. In this column we will discuss the most important changes for expatriate employees and their employers.

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  • Aviation Industry Indonesia: ASEAN Open Skies, Challenges & Opportunities

    In line with the implementation of the ASEAN Economic Community (AEC) by the end of the year, the ASEAN Open Skies policy (also known as the ASEAN Single Aviation Market) should become fully effective later this year. The ASEAN Open Skies policy, a key component of the AEC, involves the multilateral agreement of all ten ASEAN countries to unite their skies into a single aviation market (hence liberalizing rules and regulations to a large degree) in a bid to boost the region’s economic growth.

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  • Analysis Indonesia’s Property Market; Overview & Foreign Ownership

    The residential property sector of Indonesia remains attractive in 2015 despite several factors having managed to slow growth over the past two years. In this column I discuss the factors that have slowed growth in Indonesia’s property sector and how Indonesian authorities (such as the central bank and Financial Services Authority) responded to these challenges through new regulations. Lastly, I provide an update on the recently announced plan of the Indonesian government to allow foreign ownership of luxurious apartments.

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