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.

  • Why Do Indonesia’s Coffee Production & Export Decline in 2014?

    The Association of Indonesian Coffee Exporters and Industries (AEKI) expects coffee bean production in Indonesia to decline by about 11 percent to 650,000-670,000 tons in 2014, from 740,000 tons in the previous year. This decline is actually less severe than initially expected as weather conditions have improved in the main coffee bean growing regions on Sumatra. Meanwhile, output in 2015 is projected at 700,000 tons. Indonesia is currently the world’s third-largest coffee bean producer, after Brazil and Vietnam.

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  • Impact of Higher Subsidized Fuel Prices on Indonesia’s Property Sector

    The Indonesia Property Watch (IPW) expects that property prices in Indonesia will rise in early 2015 as a result of the recent subsided fuel price hike. On 18 November 2014, the Indonesian government raised prices of subsidized low-octane gasoline and diesel by more than 30 percent in an effort to create more fiscal room for economic and social development. The central bank responded to this move by raising its key interest rate (BI rate) by 25 basis points to 7.75 percent in an attempt to combat accelerated inflation.

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  • Business Trips & Tourism in Indonesia Boost Hotel Development

    As the number of foreign tourists rise rapidly and there is increasing demand for conferences, exhibitions and business meetings, Indonesia will see a massive inflow of investments for the construction of hotels and condominium hotels (condominium hotels combine features of apartments and hotels). In 2015, the value of new (condo) hotels projects is estimated at IDR 38.5 trillion (USD $3.2 billion), up 57.3 percent from last year. Locations that attract tourists and locations close to education centers are the primary choice.

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  • Low Cost Green Cars Support Car Sales in Indonesia

    Domestic sales of low-cost green cars (LCGCs) in Indonesia may exceed the level of 200,000 units in 2015, a 14 percentage point growth from an estimated 175,000 sold LCGC units this year. Amid slowing domestic car sales (a consequence of the country’s slowing economic growth and tighter monetary policy), popularity of the recently introduced LCGC has managed to support total car sales in Southeast Asia’s largest economy. In the first ten months of 2014, a total of 1.04 million cars were sold, up 1.72 percent from the same period last year.

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Today's Headlines