14 June 2022 (closed)
Jakarta Composite Index (7,049.88) +54.44 +0.78%
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Below is a list with tagged columns and company profiles.
Today's Headlines Investment Climate
Those who follow Indonesian politics and/or the Indonesian economy should know that November is the month in which new minimum wages are determined for the following year. It involves the minimum wages for the provinces (propinsi), districts (kabupaten), and cities (kota).
The presence of ‘something foreign’ in Indonesia is often still a somewhat sensitive issue. And, we would not be surprised if it is the country’s prolonged colonial period – when foreign forces (particularly the Dutch) came to the Archipelago in search of commodities – that brings back traumatic memories from the past. This history may thus also explain why Indonesia – today – shows a relatively high degree of economic nationalism and resource nationalism.
On Monday 19 October 2020 Indonesia Investments released a new report, titled 'Introduction Omnibus Job Creation Law'. This report discusses the contents and consequences of the recently approved Omnibus Law as well as its controversial aspects (especially for workers and the environment).
For the past couple of months we have frequently heard President Joko Widodo and other top government officials refer to the upcoming omnibus laws as key tools or solutions to improve the quality and attractiveness of Indonesia’s investment environment.
The economy of Indonesia expanded by 5.02 percent year-on-year (y/y) in the third quarter of 2019. Although the pace was in line with expectations, it does lead to a more gloomy outlook than we had before.
For the past couple of years we have often heard high government officials in Indonesia say that the country’s corporate income tax (in Indonesian: Pajak Penghasilan Badan, or PPh badan) is planned to be cut in an effort to attract more direct investment.
Per 2 January 2019 operations of the online single submission (OSS) system are transferred from the Coordinating Ministry of Economic Affairs to the Indonesia Investment Coordinating Board (BKPM).
Last week, the Organisation for Economic Co-operation and Development (OECD) released its Corporate Tax Statistics report. Several interesting conclusions were made in the report. Firstly, (corporate) taxes that are paid by legal entities (specifically companies) remain a key source of government revenues, particularly in developing nations. Secondly, over the past two decades there is a clear worldwide trend visible, namely: falling corporate tax rates.
The Indonesian government launched the One Map Policy Geoportal (KSP Geoportal). This policy involves a more detailed map of land use, hence aiming at resolving overlapping claims - as well as preventing the emergence of new cases - across the country, including in forest areas. The map was launched by Indonesian President Joko Widodo on Tuesday (11/12).
The Indonesian government plans to allow an earlier submission of a request for the extension of mining concessions. Stakeholders say that this would considerably strengthen the investment climate in Indonesia's mining sector, specifically the coal mining industry, on the back of improved legal certainty.
Latest Columns Investment Climate
President Joko Widodo’s unexpected visit to the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/10) signals that the new president of Indonesia is serious about wiping out severe bureaucracy that causes time-consuming and difficult procedures to obtain permits, licenses and certificates in a bid to ease doing business in Indonesia for both foreign and domestic investors. Joko Widodo, popularly known as Jokowi, is eager to tackle the country’s ‘red-tape’ problem as it curtails the pace of economic growth in Indonesia.
The Indonesia Investment Coordinating Board (BKPM) announced that growth of foreign direct investment (FDI) in Indonesia has slowed in the first nine months of 2014. In the first three quarters Indonesia saw the influx of IDR 228.3 trillion (USD $18.7 billion) worth of FDI, a 14.6 percentage point increase year-on-year (y/y). However, this growth pace is much lower than the 21.3 percent point growth of FDIs in the first nine months of 2013. In US dollar terms the decline was even greater as the rupiah has been depreciating.
The result of Indonesia’s presidential election (scheduled for 9 July 2014), which has become a tight race between Prabowo Subianto and Joko Widodo (Jokowi), will for sure have a large impact on foreign investors’ confidence in Indonesian politics and the economy. A few weeks ago, a survey of Deutsche Bank showed that a majority of respondents (consisting of foreign investors) intend to sell their Indonesian assets if controversial candidate Prabowo Subianto will be elected. What are foreigners’ perceptions of a Subianto win?
After months of uncertainty and speculation, Governor of Jakarta Joko Widodo (popularly known as Jokowi) has finally declared to run for the Indonesian presidency in the presidential election scheduled for 9 July 2014. Jokowi is backed by the Indonesian Democratic Party of Struggle (PDI-P), one of the largest political parties in Indonesia, led by chairwoman Megawati Sukarnoputri. On Friday (14/03), Megawati released a statement in which she announced to fully support Jokowi in the upcoming elections.
Last week, the Jakarta Composite Index (IHSG) weakened. The benchmark stock index of Indonesia was affected by negative market sentiments brought on by domestic factors. Most importantly, the large-scale demonstrations across Indonesia by Indonesian workers who demanded for higher minimum wages as annual inflation has surged since June 2013 after prices of subsidized fuels were raised. These demands, however, jeopardize the attractiveness of Indonesia's investment climate.
Liberalization of trade and investment among the Asia-Pacific Economic Cooperation (APEC) members should be expanded and governments should refrain from using any protectionist measures. Meanwhile, the private sector plays an important role in the economic expansion of the Asia-Pacific and governments should create a conducive investment climate for this sector. This was the main message conveyed in the speech of John Kerry, US minister of foreign affairs who replaced Barack Obama at the APEC Leader Summit.
Indonesia's central government hopes that local governments team up with the private sector to develop the country's infrastructure. President Susilo Bambang Yudhoyono said that there are two ways through which local governments can stimulate its infrastructure development: cut expenses on other fields and use it on infrastructure development instead, or, invite the private sector to participate in public-private partnerships (PPPs).
