Today's Headlines in Indonesia

The Today's Headlines section of Indonesia Investments is a regularly updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.

  • Manufacturing Activity Indonesia Slowed for 9th Straight Month in June

    Indonesia’s manufacturing activity continued to contract in June. It was the ninth consecutive month that the country’s manufacturing sector contracted. The Nikkei/Markit purchasing manager's index (PMI) rose slightly to 47.8 in June 2015 from 47.1 in May, implying that the sector contracted at a slower pace but remained well below the level of 50 that separates contraction from expansion. Contraction continued due to persistent declines in new orders and production. Meanwhile, inflationary pressures (7.26 percent y/y in June) persist.

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  • Inflation Indonesia Update June: Consumer Price Index Up 0.54% m/m

    Indonesia’s inflation accelerated to 7.26 percent year-on-year (y/y) in June 2015 on higher food prices triggered by the start of the Ramadan month (the Islamic fasting month). The seasonal Ramadan and subsequent Idul Fitri celebrations always cause inflationary pressure in Indonesia as consumers increase spending. Despite Indonesian purchasing power having declined in recent months, reflected by slowing car and motorcycle sales, cheaper consumer goods such as food, clothes, shoes and bags are popular.

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  • Aviation Indonesia: Military Plane Crash in Medan (North Sumatra)

    On Tuesday (30/06), an Indonesian military airplane (C-130 Hercules) crashed into a densely populated residential area in the city of Medan in North Sumatra. The aircraft, en route from the military airport in Medan to Tanjung Pinang (capital of Indonesia's Riau Islands), crashed shortly after take-off and probably carried 122 people. A government spokesman said that at least 141 people have died. This figure is likely to rise. According to local media, the pilot of the military aircraft requested to return to base due to engine trouble.

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  • Infrastructure Development in Indonesia to Accelerate?

    Indonesia’s rapidly growing population in combination with robust economic growth and underinvestment in infrastructure development has resulted in the country’s current lack of quality and quantity of infrastructure. This situation causes a steep increase in logistics costs and blocks efforts to develop and realize national and regional economic potentials (an efficient logistics system is crucial for socioeconomic development of Indonesia). However, government spending on infrastructure development is set to start soon.

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