Below is a list with tagged columns and company profiles.

Today's Headlines Government Spending

  • Indonesia's 2017 Economic Growth Target Set at 5.1%

    Indonesia's 2017 Economic Growth Target Set at 5.1%

    The central government of Indonesia and Commission XI within Indonesia's House of Representatives (DPR) agreed to set the nation's economic growth target at 5.1 percent (y/y) in the draft state budget for 2017. This target is 0.2 percentage points below the GDP growth target that was mentioned by Indonesian President Joko Widodo in a speech last month (based on a financial note) and is also below the 5.2 GDP growth target that was set in the Revised 2016 State Budget. Less optimistic forecasts are especially caused by a cut in government spending.

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  • Indonesia's 2017 State Budget Proposal Considered Realistic

    Indonesia's 2017 State Budget Proposal Considered Realistic

    Earlier this week Indonesian President Joko Widodo sent the proposal for the 2017 State Budget to Indonesia's House of Representatives (DPR). The proposed budget is regarded far more realistic compared to previous budgets drafted by the Indonesian government and therefore speculation immediately suggested that former World Bank managing director Sri Mulyani Indrawati, who became Indonesia's new finance minister in the latest cabinet reshuffle, had big input in this more pragmatic 2017 budget.

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  • Politics Indonesia: Joko Widodo to Decide for another Cabinet Reshuffle?

    Politics Indonesia: Joko Widodo to Decide for another Cabinet Reshuffle?

    There has been rising speculation in Indonesia in recent months that Indonesian President Joko Widodo will decide for another cabinet reshuffle as several ministers are held responsible for the disappointing performance of their ministries (that have reacted too slow to implement new government guidelines, for example those guidelines set in the series of economic policy packages that have been released since September 2015). On 12 August 2015, Widodo had already reshuffled his cabinet, replacing six ministers.

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  • Gov't & World Bank Cut Indonesia's 2016 GDP Growth Forecast to 5.1%

    Gov't & World Bank Cut Indonesia's 2016 GDP Growth Forecast to 5.1%

    In line with expectations, the government of Indonesia revised down its economic growth target in 2016 from 5.3 percent (y/y) to 5.1 percent (y/y) amid subdued private consumption, slower-than-expected private investment, and low commodity prices. Meanwhile, the World Bank also cut its forecast for Indonesia's economic growth in 2016 to 5.1 percent (y/y), down from its earlier prediction of 5.3 percent (y/y). The World Bank also slashed its outlook for global growth from 2.9 percent (y/y) to 2.4 percent (y/y) this year.

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  • Indonesia Needs to Work Hard to Achieve 2016 Economic Growth Target

    Indonesia Needs to Work Hard to Achieve 2016 Economic Growth Target

    Indonesian President Joko Widodo has formed a task force that is tasked to monitor the full implementation of Indonesia's 12 economic policy packages throughout the nation. Since September 2015 the government of Indonesia has been unveiling a series of economic policy packages that include tax incentives, deregulation as well as logistics solutions with the overall aim of boosting economic growth. However, businessmen have complained about the weak implementation of these packages. This may also explain why Indonesia's economic growth in Q1-2016 was weaker-than-expected.

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  • GDP Growth: Slowing Household Consumption in Indonesia is Worrisome

    GDP Growth: Slowing Household Consumption in Indonesia is Worrisome

    Efforts to raise people's purchasing power and household consumption in Indonesia will be key to push for higher economic growth in 2016. According to the latest data from Statistics Indonesia (BPS), Indonesia's gross domestic product (GDP) growth reached 4.92 percent (y/y) in the first quarter of 2016. Although this result failed to meet analysts' projections (which generally stood around 5 percent y/y), it was higher than the 4.73 percent (y/y) economic growth pace that was posted in the same quarter one year earlier.

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  • Disappointing Figure; Indonesia's GDP Growth at 4.92% in Q1-2016

    Disappointing Figure; Indonesia's GDP Growth at 4.92% in Q1-2016

    Economic growth of Indonesia was weaker-than-estimated in the first quarter of 2016. According to the latest data from Statistics Indonesia (BPS), released today (04/05), Indonesia's gross domestic product (GDP) growth reached 4.92 percent (y/y) in Q1-2016. Most analysts expected to see a GDP growth pace slightly above the 5 percent (y/y) mark and therefore the publication of BPS was disappointing and raises questions whether Indonesia's economic growth can in fact accelerate significantly in 2016.

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  • Some Thoughts on the Performance of Indonesia's Stock Market in 2016

    Some Thoughts about Performance of Indonesia's Stock Market in 2016

    The stock performance of Indonesian companies listed on the Indonesia Stock Exchange (IDX) in 2016 is expected to be better than last year's performance. One of the factors that supports this assumption is Indonesia's accelerating economic growth. Most - if not all - analysts expect GDP growth to rebound from its six-year low of 4.79 percent (y/y) in 2015. Indonesia's Q4-2015 GDP growth at 5.04 percent (y/y) was already promising (supported by government spending). In 2016 a growth pace in the range of 5.0 - 5.2 percent (y/y) should be possible. Although the link is not perfect, there is a correlation between a nation's stock market and its GDP growth.

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  • Credit Growth in Indonesia Grows at Slowest Pace in 6 Years

    Credit Growth in Indonesia Grows at Slowest Pace in 6 Years

    Credit disbursement in Indonesia's banking sector grew at its slowest pace in six years in the first quarter of 2016. This weak performance is attributed to the slowdown in the country's real sector. Muliaman D. Hadad, Chairman of Indonesia's Financial Services Authority (OJK), said credit expansion grew 10 percent (y/y) to IDR 4,084 billion (approx. USD $300 billion) in Q1-2016. However, Hadad remains optimistic that credit expansion will accelerate in the second half of the year in line with forecasts for accelerating GDP growth. This will be a better context for businesses to expand.

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  • Indonesia Investments' Newsletter of 10 April 2016 Released

    Indonesia Investments' Newsletter of 10 April 2016 Released

    On 10 April 2016, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve hot topics and economic matters such as Indonesian links to the controversial Panama Papers, the cut in 2016 government spending, higher non-taxable income, public debt, oil output, a corruption case, profiles of Indonesian companies, and more.

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Latest Columns Government Spending

  • Despite Deviations Indonesia Won't Revise the 2018 State Budget

    Despite Deviations Indonesia Won't Revise the 2018 State Budget

    The Indonesian government decided not to revise its 2018 State Budget despite the fact that a couple of assumptions in the budget - such as the rupiah exchange rate or the oil price - differ markedly from the actual (real) level in the first half of 2018. After a meeting at the Presidential Palace in Bogor, Finance Minister Sri Mulyani Indrawati told reporters that President Joko Widodo will not adjust these assumptions due to a number of considerations.

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  • Indonesia's Infrastructure Spending Below Average, How Come?

    Indonesia's Infrastructure Spending Below Average, How Come?

    If we take a look at Indonesia's central government spending in the first four months of 2018, then we detect something interesting. Overall, government spending has grown in the January-April 2018 period (compared to the same period one year earlier). However, growth in government spending is led by rising social assistance spending and rising subsidy spending. Meanwhile, growth of infrastructure spending has been much less robust. Does this mean that the Indonesian government has curtailed infrastructure development spending in order to relieve rising pressures on the budget deficit?

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  • State Budget Indonesia: Realization & Performance in Q1-2018

    State Budget Indonesia: Realization & Performance in Q1-2018

    The Indonesian government expects the nation's gross domestic product (GDP) to have expanded 5.2 percent year-on-year (y/y) in the first quarter of 2018. Indonesian Finance Minister Sri Mulyani Indrawati detects a strengthening domestic economy, supported by improved tax income and improved government spending in Q1-2018.

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  • Interview with Jusuf Kalla about the Indonesian Economy

    Interview with Jusuf Kalla about the Indonesian Economy

    Throughout the year 2016 the economy of Indonesia was plagued by major challenges stemming from abroad. In fact, most countries around the globe have been busy to soften the impact of low global economic growth on the local economy. In the case of Indonesia, authorities have unveiled a series of 14 economic policy packages aimed at improving investment, trade and purchasing power. Although it remains difficult to implement these packages in full force (due to the low quality of human resources at the local government level or conflicts of interests), they have helped to push Indonesia's economic growth into higher gear.

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  • Widodo: Regions Need to Optimize Spending to Boost the Economy

    Widodo: Regions Need to Optimize Spending to Boost the Economy

    A better-than-expected GDP growth figure in the second quarter of 2016 should not be a reason for Indonesia to become complacent. On the contrary, efforts to boost economic growth need to be continued. One of the keys to unlock accelerated economic growth is to optimize spending of government funds at the regional level. Alarmingly, some IDR 214.7 trillion (approx. USD $16.5 billion) of central government funds that are allocated to regional governments in the 2016 state budget are left untouched at bank accounts.

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  • Government Revenue Collection Indonesia at 23% of 2016 Target in Early May

    Government Revenue Collection Indonesia at 23% of 2016 Target in Early May

    So far this year, realization of government revenue in Indonesia (up to 8 May 2016) has reached IDR 419.2 trillion (approx. USD $32 billion), roughly 23 percent of the full-year revenue target in 2016 (IDR 1,822.5 trillion). This result is weaker compared to last year when the government collected IDR 476.3 trillion in the period 1 January - 15 May 2015, or 27 percent of the full-year target. Meanwhile, government spending reached IDR 586.8 trillion between 1 January and 8 May 2016, or 28 percent of the full-year target (IDR 2,095.7 trillion), roughly the same as government spending during the same period last year.

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  • Asian Development Bank: Economic Growth Indonesia to Rebound in 2016

    Asian Development Bank: Economic Growth Indonesia to Rebound in 2016

    The Asian Development Bank (ADB) expects Indonesia's economic growth to rebound in 2016 on the back of improving government spending realization (specifically on infrastructure development) and the series of economic policy packages that have been unveiled by the government since September 2015. Consumers and private investors are expected to respond positively to these government efforts hence contributing to macroeconomic growth.

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  • International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    The International Monetary Fund (IMF) expects Indonesia's economy to expand 4.9 percent year-on-year (y/y) in 2016, slightly up from a 4.8 percentage point (y/y) growth of gross domestic product (GDP) in 2015. On Tuesday (15/03) Luis Breuer, IMF Mission Chief for Indonesia, said the Washington-based lender projects limited growth (+0.1 percent) of Indonesia's private consumption this year. Regarding growth of investment and government spending in 2016, the IMF holds a more positive view. On the same day, the World Bank cut its forecast for Indonesia's 2016 GDP growth by 0.2 percent to 5.1 percent.

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  • World Bank: SPAN Improves Indonesia's Efficiency, Transparency & Accountability

    World Bank: SPAN Improves Indonesia's Efficiency, Transparency & Accountability

    A new financial management system was launched in April 2015 by the Indonesian government. This new system, called Sistem Perbendaharaan dan Anggaran Negara (abbreviated SPAN), aims to enhance public efficiency, transparency and accountability in Indonesia by managing the financial transactions of more than 24,000 government spending units in all 33 provinces. According to a new World Bank story, Indonesia's new financial system has managed to improve efficiency, transparency and accountability. Moreover, it improves budget planning and spending.

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  • GDP in Focus: Analysis Indonesia's 5.04% Economic Growth in Q4-2015

    GDP in Focus: Analysis of Indonesia's 5.04% Economic Growth in 2015

    The Indonesian economy expanded 5.04 percent year-on-year (y/y) in the fourth quarter of 2015, slightly beating analyst expectations and constituting the highest quarterly growth pace since Q1-2014 thus providing optimism that Indonesia's economic growth will finally be able to accelerate in 2016 after six years of economic slowdown (therefore Indonesia's benchmark Jakarta Composite Index surged a staggering 2.85 percent on Friday). In full-year 2015 the economy of Indonesia expanded 4.79 percent (y/y), the slowest growth pace since 2009.

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