On Thursday (19/09), most currencies and stock indices outside the USA were bullish after the Federal Reserve decided to continue its massive monthly USD $85 billion bond buying program. Today (20/09), Asian currencies and stock indices took the foot off the gas as many investors sought to cash in on yesterday's gains. The MSCI Asia Pacific was still able to rise slightly (0.1 percent) after jumping 2.2 percent yesterday, but Indonesia's benchmark stock index (IHSG) plunged 1.86 percent (after gaining 4.65 percent yesterday).
17 February 2020 (closed)
USD/IDR (13,777) +42.00 +0.31%
EUR/IDR (14,865) +32.28 +0.22%
Jakarta Composite Index (5,867.52) +0.58 +0.01%
Indonesia Investments' News Columns section contains articles with a detailed analysis regarding topics that have high news value in Indonesia and can be regarded as topics that are capable of influencing Indonesia's investment climate. Most columns published in this section cover subjects related to politics, economics and social matters. By following these publications on a regular basis, one will be apprised of what is happening in Indonesia and - just as important - understand why it is happening.
Indonesia's poverty rate is expected to jump to between 11.13 and 11.37 percent of the total Indonesian population in 2013 due to inflationary pressures. Inflation may reach 9.2 percent at the year end. The new poverty forecast is significantly higher than the government's original target of 9.5 to 10.5 percent as set in the country's State Budget. The revised forecast was presented by Indonesia's Ministry of National Development Planning (Bappenas). Poverty basket inflation is expected to rise accordingly.
Concerns have arisen over the government's plan to increase royalties and export duties for coal. The Indonesian Coal Mining Association (APBI) expects that this policy will lead to the closure of various coal miners while increasing acts of illegal mining. According to Bob Kamandanu, chairman of the APBI, 60 million tons of coal per year is not listed by any authority and thus can be labeled 'illegal'. Illegal coal mining also implies that the Indonesian government misses out on about IDR 5.6 trillion (USD $495.6 million) per year.
In its most recent report regarding Indonesia's economy, the World Bank states that high logistic costs form a serious impediment to the country's economic growth. The report, titled Annual Logistics Report, is compiled by Bandung Institute of Technology’s Research Center for Logistics and Supply Chains, the Indonesian Logistics Association (ALI), the STC Group, Panteia Research Institute, and the World Bank Indonesia Office. The report provides an analysis and overview of the progress made in tackling the problem of logistics in Indonesia.