Today's Headlines in Indonesia

The Today's Headlines section of Indonesia Investments is a daily updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines will 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.

  • Tenders in Indonesia: Infrastructure & Construction Tenders Delayed

    The deadline for tenders for various infrastructure projects in Indonesia has been extended by the Public Works and Public Housing Ministry because it needs more time to determine the number of projects to be offered and to calculate new budget allocations for these projects. Ministry official Hediyanto W. Husaini said that his ministry is optimistic that by early May 2015 all construction projects can be tendered. Currently, only 9,578 construction projects (about 70 percent of total planned projects) can be tendered.

    Read more ›

  • Indonesian Government Flexible on Mandatory Letter of Credit (L/C)

    Amid unclarity over the newly introduced mandatory use of letters of credit (L/C), the Indonesian government has showed some flexibility. Starting from Wednesday (01/04) Indonesian exporters of four key commodities - coal, palm (kernel) oil, oil & gas, and minerals - are required to use L/C for all export deals. This new rule was developed in order to increase Indonesia’s export earnings and enhance monitoring sales of the country’s natural resources. However, a temporary exemption is now made possible.

    Read more ›

  • Coal Industry Indonesia: Confusion about Letter of Credit & Royalties

    The coal mining industry continued its downward trend in 2014 amid weak global coal demand and an oversupply on the market. The benchmark Newcastle port thermal coal price fell 29 percent (y/y) over 2014 and declined a further 8 percent in the first quarter of 2015. As a result, Indonesian coal miners reported mostly weak 2014 corporate earnings. However, Indonesian miners are concerned that two new regulations will cause more problems. The Indonesian government plans to raise coal royalties and introduce mandatory letters of credit.

    Read more ›

  • Indonesia Update: Inflation Up, Manufacturing Activity Contracts

    After two straight months of deflation, Indonesia saw its consumer price index rise again in March 2015. According to data from Statistics Indonesia (BPS), Indonesia recorded inflation of 0.17 percent month-to-month (m/m) in March. This result was in line with analysts’ projections. On a year-on-year (y/y) basis, Indonesian inflation rose to 6.38 percent from the same month last year, slightly higher than the 6.29 percent (y/y) of inflation recorded in February. The country’s core inflation rose to 5.04 percent (y/y) in March.

    Read more ›

Today's Headlines