• Economy of Indonesia is Facing Several Big Challenges

    Economy of Indonesia is Facing Several Big Challenges

    There are doubts whether Indonesia's gross domestic product (GDP) growth can reach 5.2 percent year-on-year (y/y) in full-year 2018 as Indonesia is experiencing a couple of major challenges. Challenges include the global trade war, the fragile rupiah, Bank Indonesia's higher benchmark interest rate, the current account deficit, and political tensions ahead of the 2019 legislative and presidential elections. Currently, Indonesia Investments' forecast for Indonesia's economic growth is set at 5.2 percent (y/y) in 2018.

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  • Trade War Kicks Off, Trump also Eyes Tariffs on Indonesian Goods

    Trade War Kicks Off, Trump also Eyes Tariffs on Indonesian Goods

    The big news story today is that US tariffs on USD $34 billion worth of Chinese goods came into effect this morning (06/07). Considering China immediately imposed retaliatory tariffs on US imports, it means we are witnessing the start of the global trade war. There have been major concerns over simmering trade tensions ever since US President Donald Trump announced steep steel and aluminum tariffs back in late-February 2018. Now, however, the trade war has really arrived.

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  • Commodity Watch Indonesia: Tea Production, Export Under Pressure

    Commodity Watch Indonesia: Tea Production, Export Under Pressure

    Indonesia's Agriculture Ministry is optimistic that the nation's tea production can reach 140,234 tons in full-year 2018, up modestly (+0.6 percent) compared to tea production in the preceding year (139,362 tons). Rising tea output is targeted to come on the back of the government's efforts to encourage the optimization of tea productivity. Key strategy is to make more efficient use of the tea plantations. Currently, there are many empty spots in these plantations. By planting new trees on these empty spots, tea production could to rise.

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  • Are Foreign Workers Required to Learn the Indonesian language?

    Are Foreign Workers Required to Learn the Indonesian language?

    Presidential Regulation No. 20/2018 on the Use of Foreign Workers continues to be a controversial regulation. In essence the new regulation aims at simplifying the permit application process for foreign workers, hence making the process more efficient and faster. As a result, foreign direct investment (FDI) realization in Indonesia should rise, thus encouraging overall economic growth in Southeast Asia's largest economy.

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