On Tuesday 5 December 2023 Indonesia Investments released the November 2023 edition of its monthly report. The report informs readers on the latest - and in our opinion most relevant - economic, political and social developments in Indonesia.
What do we discuss in this November 2023 report?
First, November is the month when the provincial governments (and cities/districts) need to announce next year's minimum wages. And so, we take a look at the new minimum wages that will kick in per 1 January 2024. Determining these wages always causes many to be disappointed: workers feel that minimum wages are not growing strong enough, while business-owners are burdened by these wages as their operational costs rise. The government has again revised its minimum wage formula, but that didn't manage to stop criticism. In the report's first article we zoom in on these wages.
Second, there are two separate articles in the report that focus on Indonesia's gross domestic product (GDP) growth. One involves our projection for Indonesia's economic growth in the fourth quarter of 2023 (based on various macroeconomic indicators) as well as some preliminary words about Indonesia's economic performance in 2024. The other article involves an analysis of Indonesia's Q3-2023 GDP data that were released by the Statistics Office (BPS) in early November 2023.
Third, we zoom in on the tourism industry of Indonesia. While this industry has not recovered yet from the unprecedented COVID-19 shock, we do see a faster-than-expected recovery in 2023. In fact, the government's foreign visitor arrivals target for full-2023 was already achieved in July 2023. However, it is interesting that the number of domestic trips (Indonesians traveling in their own country) is much lower than expected so far in 2023. Last year, domestic trips reached an all-time record high as Indonesians prefer to travel in the Archipelago than to go abroad.
Fourth, as the legislative and presidential elections are approaching (scheduled for 14 February 2024) we of course offer an update on this race. Particularly the presidential election is interesting as Indonesia will have a new president after Joko Widodo's decade-long rule ends (he cannot compete in the elections due to the two-term cap on the presidency). Interestingly enough, Prabowo Subianto seems to enjoy a widening gap with fellow contestant Ganjar Pranowo.
Lastly, as usual, we discuss a couple of important economic data, such as Indonesia's trade performance, inflation and manufacturing activity.
The November 2023 report (an electronic report, PDF) can be ordered by sending an email to email@example.com or a message to +62.882.9875.1125 (including WhatsApp).
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