Below is a list with tagged columns and company profiles.

Today's Headlines Joko Widodo

  • Uncertainty about Indonesia's Palm Oil Export Levy Lingers On

    Uncertainty remains about the timing of the implementation of Indonesia's new palm oil export levies. In May 2015 Indonesian President Joko Widodo signed a new regulation stipulating that a USD $50 (per metric ton) levy is to be imposed on crude palm oil (CPO) exports, and a USD $30 (per metric ton) levy on processed palm oil product exports. Proceeds from these export levies will be used to fund the Indonesian government’s biodiesel (subsidy) program. However, implementation of the new regulation has been delayed several times.

    Read more ›

  • Islamic Banking in Indonesia: ‘I Love Sharia Finance Program’

    Islamic Banking in Indonesia: ‘I Love Sharia Finance Program’

    Indonesian President Joko Widodo stated during the launch of the “I Love Sharia Finance Program” that Indonesia should become the global center for Islamic finance (also known as sharia banking). The program, initiated by the country’s Financial Services Authority (OJK), was launched in Jakarta on Sunday (14/06). Islamic finance is a form of banking or banking activity that is consistent with the principles of sharia (Islamic law). In recent years, the global market for sharia-compliant financial instruments has risen robustly.

    Read more ›

  • Indonesia’s Economic Growth to Slip below 5% Mark in 2015?

    Indonesia’s Economic Growth to Slip below 5% Mark in 2015?

    Several international institutions revised down their outlook for economic growth of Indonesia in 2015 as foreign investors have been somewhat disappointed with the performance of the new Indonesian government, while the global economic picture remains far from rosy. Goldman Sachs, JPMorgan Chase, Credit Suisse and Nomura Holdings have all slashed Indonesia’s economic growth forecast this year to below the five percent (year-on-year) mark. Last year Indonesia’s economic growth touched a five-year low of 5.02 percent (y/y).

    Read more ›

  • Indonesia Rice Update: Joko Widodo Forced to Allow Rice Imports?

    In order to avert a spike in inflation and social unrest, Indonesian President Joko Widodo may feel forced to allow around 1.5 million metric tons of rice imports in 2015 as domestic prices of rice have been rising on sluggish local harvests. Moreover, an intensifying El Nino is expected to cause dry weather in the months ahead hence further jeopardizing rice productivity. These already tough conditions will be exacerbated by seasonal Islamic celebrations (Ramadan and Idul Fitri) that always trigger increased consumption of food products.

    Read more ›

  • Corporate Tax Indonesia Not to Be Cut Before 2016

    Corporate Tax Indonesia Not to Be Cut Before 2016

    On Monday (11/05) it was reported - quoting an Indonesian tax official - that Indonesian President Joko Widodo had already ordered to cut the country’s corporate tax rate from 25 percent currently to below 18 percent in a bid to attract more investment and to make Indonesia’s business environment more competitive (for example, Singapore’s corporate tax is currently 17 percent). One day later, however, Finance Minister Bambang Brodjonegoro stated that, if the corporate tax is to be revised, it will be next year at the earliest.

    Read more ›

  • Groundbreaking Trans-Sumatra Toll Road; Infrastructure Projects Indonesia

    Infrastructure Indonesia: Groundbreaking Trans-Sumatra Toll Road

    Today, Indonesian President Joko Widodo will lay the first stone for the groundbreaking ceremony of the 2,700 km Trans-Sumatra toll road project, linking Lampung to Aceh on the resource-rich island of Sumatra (Indonesia’s second-largest island in terms of geographic size). The toll road, which is one of the key priority infrastructure projects for the Indonesian government, is estimated to require a total of IDR 300 trillion (USD $23.1 billion) of investment. Ten years after parts of the toll road were first tendered, construction can finally commence.

    Read more ›

  • International Relations Indonesia: Death Penalty for Drug Crimes

    International Relations Indonesia: Death Penalty for Drug Crimes

    This week Indonesia’s police arrested a foreign national in Jakarta in connection to the discovery of 2.2 kilograms of crystal methamphetamine (meth) in a boarding house in Srengseng (West Jakarta). Jakarta Police spokesman Budi Widjanarko said that police action was taken based on intelligence about a syndicate that smuggles crystal meth into Indonesia from Nigeria. Reportedly, this syndicate is led by a Jakarta prison inmate. Recent history shows that Indonesian authorities are very strict on drug-related crimes.

    Read more ›

  • 24th World Economic Forum: Indonesia Wants More Foreign Investment

    24th World Economic Forum: Indonesia Wants More Foreign Investment

    On the sidelines of the 24th World Economic Forum (WEF) on East Asia, Indonesia’s Chief Economic Minister Sofyan Djalil said that - despite global challenges - the government maintains its economic growth target of 5.7 percent (y/y) in 2015. However, he added that it will require great effort to achieve this target. One key strategy to achieve the target is to attract foreign investment through several policies including tax incentives and by easing the country’s bureaucratic hurdles for investment permits.

    Read more ›

  • S&P Awaiting Results from Indonesia’s Economic Policy Reforms

    S&P Awaiting Results from Indonesia’s Economic Policy Reforms

    Global credit rating agency Standard & Poor’s remains the only credit rating agency among the big three to maintain its BB+/stable rating on Indonesia’s sovereign credit (which is one notch below investment grade). Both Fitch Ratings (BBB-/stable) and Moody’s Investor Service (Baa3/stable) had already brought Indonesia back to investment grade in 2011 and 2012. Standard & Poor’s has been reluctant to raise Indonesia’s status as it wants to see more results from the country’s economic policy reforms.

    Read more ›

  • Economic Growth of Indonesia Hits Five-Year Low at 5.02% in 2014

    Economic Growth of Indonesia Hits Five-Year Low at 5.02% in 2014

    The economy of Indonesia expanded 5.02 percent year-on-year (y/y) to IDR 8,354 trillion (USD $664 billion) in 2014, the nation’s slowest annual growth pace since 2009, according to the latest data from Statistics Indonesia (BPS). As such, GDP growth failed to achieve the central government’s 5.5 percentage point growth target that was set in the 2014 State Budget. Indonesia’s economic growth has been slowing since 2011 when it still posted a 6.5 percentage point growth rate (y/y). However, growth is expected to rebound from here.

    Read more ›

Latest Columns Joko Widodo

  • Indonesian Stocks & Rupiah Strengthen on Politics and Fuel Price Hike

    Indonesian Stocks & Rupiah Strengthen on Politics and Fuel Price Hike

    Indonesian stocks and the rupiah have rebounded on Friday due to several internal and external factors. During the first trading session on Friday (17/10), the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) surged 0.94 percent to 4,998.14 points. Meanwhile, based on the Bloomberg Dollar Index, the Indonesian rupiah exchange rate had appreciated 0.26 percent to IDR 12,228 per US dollar by 12:30 pm local Jakarta time. Why do Indonesian stocks and the rupiah perform well on Friday?

    Read more ›

  • Steel Industry in Indonesia: Challenges and Opportunities

    Steel Industry in Indonesia: Challenges and Opportunities

    Domestic steel sales in Indonesia are expected to rise 6 percent y/y to 15.1 million tons in 2014. Meanwhile, the global average steel price has been USD $536 per ton this year, implying that the market value of Indonesian steel sales is to reach USD $8 billion this year. In recent years, the country’s steel sales have been rising on development of infrastructure, defense industry, and manufacturing. The sales are expected to continue rising in the years ahead due to commitment of the government to boost infrastructure development.

    Read more ›

  • Moody’s Investors Service Positive about Indonesia’s Economy

    Moody’s Investors Service Positive about Indonesia’s Economy

    Global credit rating agency Moody’s Investors Service stated that it maintains a stable outlook for Indonesia’s sovereign and corporate debt rating in the next quarters due to the country’s healthy credit fundamentals, solid macroeconomy, and reduced political tensions. Moody’s believes that Indonesia’s fundamentals are strong enough to offset the negative impact of external pressures such as looming higher US interest rates and slowing economic growth in China. Moody’s had raised Indonesia’s sovereign debt rating to investment grade in late 2011.

    Read more ›

  • Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Finance Minister Chatib Basri on Indonesia’s Economic Fundamentals

    Indonesian Finance Minister Chatib Basri said that the lower pace of economic growth in China, the world’s second-largest economy, is a major concern for Indonesia as it leads to declining demand for commodities (and thus places downward pressure on commodity prices). As Indonesia is a major commodity exporter - such as coal, crude palm oil, nickel ore and tin - the country feels the impact of weak global demand for commodities. About 60 percent of Indonesia’s exports are commodities, mostly raw ones.

    Read more ›

  • Facebook CEO Mark Zuckerberg Visits Indonesia and Meets Jokowi

    Facebook CEO Mark Zuckerberg Visits Indonesia and Meets Jokowi

    Today, Indonesian president-elect Joko Widodo (commonly referred to as Jokowi) and Facebook CEO Mark Zuckerberg met in Jakarta to discuss how Facebook can be utilized for the benefit of the people and how the social media network can support Indonesian micro businesses. With nearly 70 million, Indonesia contains the world’s fourth-largest Facebook community. With a total population that numbers about 250 million people, a burgeoning middle class and relatively low Internet penetration, there remains a large untapped potential.

    Read more ›

  • Stock Market Update Indonesia: Down 1.01% on Global Concerns

    Indonesian stocks tumbled at the first trading day of the week as investors are still concerned about the condition of the global economy. Declining stock indices on Wall Street at the end of last week had a negative impact on Asian stock indices, including Indonesia’s benchmark stock index (known as the Jakarta Composite Index, or abbreviated IHSG). The IHSG fell 1.01 percent to 4,913.05, its lowest level since 4 July 2014, on Monday (13/10). Foreign investors recorded net selling of IDR 595 billion (USD $49.6 million).

    Read more ›

  • Rupiah Update Indonesia: Central Bank Ready to Intervene

    Rupiah Update Indonesia: Central Bank Ready to Intervene

    Bank Indonesia Governor Agus Martowardojo said that although the recent weakening trend of the Indonesian rupiah exchange rate is in line with the performance of other Asian currencies, the central bank is prepared to intervene in the market in an effort to support the currency and keep it in a comfortable range. On Monday (06/10), Bank Indonesia Executive Director Tirta Segara already stated that foreign exchange intervention was conducted in September 2014 in order to stabilize the rupiah exchange rate.

    Read more ›

  • Indonesian Stocks Rebound but Rupiah Continues to Depreciate

    Technically the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) had to rebound after sharp declines during the last couple of trading days making Indonesian stocks relatively cheap. The IHSG was also supported by rising stock indices in Japan and Hong Kong that rose on strong US jobs data (although other Asian markets fell due to concerns about sooner-than-expected US interest rate hikes. Meanwhile, the rupiah continued to depreciate as the market is concerned about the political situation in Indonesia.

    Read more ›

  • Stock Market Update Indonesia: Down on Politics and Global Data

    Indonesian stocks plunged considerably on Thursday (02/10). The country’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) declined 2.73 percent to 5,000.81 points, the largest drop in almost six months. This poor performance was caused by both external and internal factors. Externally, various weak economic data from the USA and Europe as well as an appreciating yen impacted negatively on Asian stock indices. Internally, market participants responded negatively toward the inauguration of the new parliament.

    Read more ›

  • Battle Jokowi-Prabowo; Democratic Future of Indonesia in Jeopardy?

    Battle Jokowi-Prabowo; Democratic Future of Indonesia in Jeopardy?

    More and more concerns have arisen recently regarding the democratic future of Indonesia. In fact, some media have reported that an impeachment of president-elect Joko Widodo, who will assume office on 20 October 2014, could become a reality as opposition in parliament - led by controversial and vindictive former army general Prabowo Subianto - is large. The Merah-Putih coalition, referring to the coalition of political parties that supported Subianto in the presidential election (which he narrowly lost to Widodo) will control 353 of the 560 seats in parliament.

    Read more ›

No business profiles with this tag