• New Big Scandal Emerged in Indonesia: Fake Vaccines for Babies

    Relatively frequently Indonesia is shocked by major scandals; usually it is a high-profile corruption case involving politicians or big businessmen but since Friday (24/06) a new scandal arose that has been keeping local media busy. This scandal is more sensitive as it involves the health of little children. Apparently, fake vaccines have been given to children - primarily to babies under one year old - across Java for the past 13 years. Police arrested a total of 16 people on grounds that they have been involved in the production and distribution of fake counterfeit vaccines.

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  • Bank Rakyat Indonesia Finally Sees Launch of BRIsat

    The Gods seemed not in favor of the BRIsat, the satellite of Indonesia's second-largest bank by assets Bank Rakyat Indonesia (BRI). The BRIsat was originally scheduled to be launched on 9 June 2016 (Indonesian timezone). However, due to technical problems and bad weather the launch had to be postponed three times. Finally, on early Sunday (20/06) the satellite was launched by Arianespace from the Guiana Space Center, Europe's Spaceport in Kourou (French Guiana), hence ushering in a new era for Indonesia's digital banking industry.

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  • Coal Remains King in Indonesia: Rising Domestic Consumption of Coal

    Domestic coal consumption in Indonesia rose 34.5 percent (y/y) to 24.5 million tons in the January-April 2016 period, according to data from Indonesia's Energy and Mineral Resources Ministry. This growth is caused by higher domestic coal demand due to Indonesia's ambitious 35,000 MW program (many of the power plants constructed in this program are coal-fired). Meanwhile, Indonesia's coal exports were down 14 percent (y/y) to 68 million metric tons over the same period amid sluggish global demand.

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  • Foreigners Can Buy Property in Indonesia, But Will They?

    Indonesia opened the property market to those foreigners who reside (legally) in Indonesia. However, it also set tough requirements regarding foreign ownership of Indonesian property. Moreover, it remains nearly impossible for expats to obtain a local mortgage to finance the purchase of property. Although local credit may actually not be attractive for foreigners as interest rates are high in Indonesia, it is interesting to take a closer look at why Indonesian banks reject to sell mortgages to foreigners and whether foreigners are actually enticed to buy property in Indonesia?

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