On 7 November 2022 Indonesia Investments released the October 2022 edition of its monthly report. Our report presents in-depth and independent analyses of a range of economic, political and social subjects that have been in the news in the month of October 2022.
What is discussed in our October 2022 edition? First of all, as usual, we present an update on the Indonesian economy. By taking a careful look into the country's main macroeconomic indicators we obtain a clear picture of the present state of the Indonesian economy. Obviously, we also pay close attention to international developments as they impact on the Indonesian economy (for example, the US Federal Reserve's monetary policy).
Another interesting topic is oil. Indonesia is a net oil importer because domestic oil production has been in a state of decline, while domestic oil consumption has been rising continuously over the past couple of decades amid strong economic and social development. This causes an expensive import bill. Not only because global crude oil prices have remained relatively high, but also because the rupiah has been under heavy pressure (showing some marked depreciation against the US dollar). Considering oil is bought in US dollar, more rupiah is needed to buy a barrel of oil when the rupiah weakens. So, Indonesia is burdened by two factors (high crude oil prices and the weakening rupiah).
Typically, investment in oil exploration and exploitation increases amid high global crude oil prices. However, so far, Indonesia has been unable to enjoy this. This too is a topic we discuss in the report.
Thirdly, although still far away (2024), Indonesia's presidential and legislative elections are approaching. It will be a very interesting presidential election because incumbent President Joko Widodo will not be able to join the race as he will have completed his second (and final) term, implying that Indonesia will welcome a new president. This could mean the country will be led by someone who has a different vision than Widodo (which could impact on the investment and business environment). Meanwhile, we did notice that Indonesian media have increasingly started to focus on the 2024 elections. So, it is a good opportunity for us to discuss which people are potential presidential candidates and whether we already see the forming of coalitions.
Fourth, we discuss the tourism industry of Indonesia. Traditionally, tourism is a key foreign exchange earner for Southeast Asia's biggest economy. However, as a consequence of the COVID-19 crisis the tourism industry of Indonesia more-or-less collapsed. We do see a rebound but it comes from a very low base, and so it may take years before tourism is back at normal levels.
Other topics we discuss include inflation, trade, monetary policy and manufacturing activity. So, for those who want to sharpen their understanding of the Indonesian economy, politics and social matters, our report is a valuable asset.
To see a complete overview of all topics discussed in our October 2022 report you can click on the link below to see the table of contents.
The October 2022 report (an electronic report) can be ordered by sending an email to firstname.lastname@example.org or a message to +62.882.9875.1125 (including WhatsApp).
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