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Today's Headlines Bureaucracy

  • Inflationary Pressure due to Indonesia's Higher Food Prices during Ramadan

    Prices of certain food products in Indonesia have risen steeply during the first week of Ramadan, the Islamic fasting month. Higher prices are a sensitive issue at the moment as the country is fighting higher inflation after subsidized fuel prices were increased in June. Therefore, the central bank raised its benchmark interest rate by 50 bps to 6.50 percent last week. If inflation exceeds 2.3 percent in July (month to month) then it might result in another upward revision of the interest rate, thus slowing down Indonesia's economic growth.

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  • Indonesia Launches Committee to Prepare for ASEAN Economic Community

    In order to be fully prepared for the start of the ASEAN Economic Community in late 2015, the Indonesian government has formed a national committee that will provide analysis, evaluations as well as recommendations to the government. Indonesia's president Susilo Bambang Yudhoyono announced plans to set up this committee in April. He stated that the committee will include representatives from the government, entrepreneurs, analysts and members of the public.

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