• ADB Praises Indonesia’s Reform Efforts but GDP Growth Limited in 2015

    Takehiko Nakao, President of the Asian Development Bank (ADB), estimates that the Indonesian economy will grow 5.6 percent year-on-year (y/y) in 2015, lower than the target that has been set by the Indonesian government in the 2015 State Budget (5.8 percent y/y). Nakao is slightly less optimistic as he expects a slowdown in government spending this year. On a positive note, Nakao’s forecast implies a sharp improvement in Indonesia’s economic growth in 2015 from an estimated 5.1 percentage point (y/y) GDP growth in 2014.

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  • Virtue Dragon Nickel Industry Invests in Nickel Smelter in Indonesia

    Chinese ferronickel producer Virtue Dragon Nickel Industry plans to invest USD $5 billion for the establishment of a nickel smelter, power plant and a port. Andrew Zhu, President Director at Virtue Dragon Nickel Industry said that these facilities will be built on a 500-hectares estate in Konawe (Southeast Sulawesi). Zhu said that the nickel smelter development involves three phases. In the first phase, which should be finished by the end of 2015, the smelter will have an annual ferronickel production capacity of 600,000 tons.

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  • Corporate News Update: Tiga Pilar Sejahtera & Indonesia Eximbank

    Indonesian food company Tiga Pilar Sejahtera, a market leader in the country’s dry vermicelli and dry noodles segments, considers to acquire two food companies in Malaysia and Vietnam in a move to expand business beyond the Indonesian borders. Sjambiri Lioe, Finance Director at Tiga Pilar Sejahtera, said that the company (which is listed under ticker symbol AISA) has set aside a total of USD $80 million for this acquisition. He refrained from mentioning the names of the targeted Asian companies.

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  • Consumer Confidence in Indonesia Declines in December 2014

    The latest survey of Indonesia’s central bank indicates that consumer confidence fell in December 2014. The central bank’s Consumer Confidence Index fell 3.6 points to 116.5 in the last month of 2014 (a score above 100 signals optimism among consumers) due to the impact of higher subsidized fuel prices implemented in November 2014. This move triggered higher prices of products and services. The central bank’s Consumer Confidence Index is based on interviews with 4,600 households in 18 Indonesian cities.

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