• President Joko Widodo to Announce Second Economic Policy Package Tomorrow

    Indonesian President Joko Widodo, often called Jokowi, is set to announce the second economic policy package on Tuesday (29/09) at the State Palace in Jakarta according to Indonesian Chief Economics Minister Darmin Nasution. Reportedly, the second package will focus primarily on boosting the competitiveness of Indonesian exports and the attractiveness of Indonesia as an investment destination.

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  • Market Update Indonesia: Jakarta Composite Index Falls, Rupiah Appreciates

    Stock indices in Asia were mixed on the first trading day of the week. Indonesia’s benchmark Jakarta Composite Index plunged 2.11 percent to 4,120.50 points (a two-year low), while the rupiah (remarkably) appreciated 0.13 percent to IDR 14,674 per US dollar according to the Bloomberg Dollar Index. Meanwhile, European markets were down after opening on Monday (28/09). What influenced these markets today?

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  • Indonesia Plans Tax Cuts to Curb Rupiah Volatility and Boost Economic Growth

    Indonesia plans to cut taxes for local exporters in a bid to boost the country’s foreign exchange reserves, while supporting the rupiah, as part of its second policy package. Indonesia’s rupiah has depreciated 18.1 percent since the start of 2015 due to looming higher US interest rates, low commodity prices, and China’s yuan devaluation. The government now plans to cut income tax on interest that exporters earn when depositing their export proceeds in local banks. Currently, income tax on bank interest (from deposit accounts) stands at 20 percent.

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  • Haze Southeast Asia: Singapore Names Indonesian Companies, Malaysia Closes Schools

    While Malaysian authorities ordered more schools to close on Monday, schools in Singapore reopened on the first day of the week as the air quality improved. However, although having improved, the air quality in Singapore remains unhealthy. The pollutant standards index in Singapore was 161 (meaning unhealthy) around 11 am local Singapore time on Monday (improving from a ‘hazardous’ reading of 341 last Friday). Meanwhile, Singapore mentioned five companies as having contributed to the forest fires that are causing the severe haze in Southeast Asia.

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