Below is a list with tagged columns and company profiles.

Today's Headlines 2014 Elections

  • Japanese Investment in Indonesia Slowed in 2014 but Rebound Detected

    Japanese Investment in Indonesia Slowed in 2014 but Rebound Detected

    Japanese investment in Indonesia has declined drastically in 2014 due to concern about the stability of Indonesian politics. Investment realization tumbled to USD $2.7 billion in 2014 from USD $4.7 billion in the previous year. The investment climate of Indonesia in 2014 was plagued by concern about the ‘political year’, referring to the legislative and presidential elections that were organized and the uncertainty they brought about as it was a tight race between market favorite Joko Widodo and controversial candidate Prabowo Subianto.

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  • Government of Indonesia Eager to Limit Investment in Cement Industry

    The Indonesian government wants to limit investment opportunities in the country’s cement industry in an attempt to maintain a healthy business climate. Indonesian Industry Ministry official Harjanto said that Indonesia’s current cement production capacity is more than enough to meet domestic demand. Given that most established cement producers have expansion plans the influx of new cement producers leads to an oversupply thus reducing companies’ profit margins. The nation’s cement production capacity stands at 77 million tons per year.

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  • 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.

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  • Cement Consumption in Indonesia Declines in 2014

    Cement Consumption in Indonesia Declines in 2014

    Growth of cement sales in Indonesia is estimated to have slowed in 2014 amid uncertainties brought about by the ‘political year’ (referring to the fragmented results of the country’s legislative and presidential elections and which led to the postponement of various infrastructure projects and other investments in Indonesia). Other factors that impacted negatively on cement sales this year were the central bank’s higher interest rate policy, low commodity prices and weakening purchasing power.

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  • World Bank Report: GDP Growth Indonesia Revised to 5.2% in 2015

    On Monday (08/12) the World Bank released the December edition of its Indonesia Economic Quarterly, entitled ‘Delivering Chance’. In the report the World Bank cut its forecast for economic growth in Indonesia next year to 5.2 percent (y/y), from 5.6 percent (y/y) in the July edition of its flagship publication, due to weaker investment growth and sluggish exports. Indonesia’s GDP growth in 2014 is projected at 5.1 percent (y/y), slightly below the World Bank’s previous estimate of 5.2 percent.

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  • Political Update: Pact Awesome Indonesia & Red-White Coalitions

    Tensions within Indonesian parliament may have eased after the two opposing coalitions signed a limited power-sharing pact on Monday (17/11) after weeks of negotiations. This pact is expected to reinforce investor confidence in Indonesian politics amid improved political certainty. Previously, parliament was divided into two rival coalitions: the Awesome Indonesia Coalition (Koalisi Indonesia Hebat), which backs Indonesian President Joko Widodo, and the Red-White Coalition (Koalisi Merah-Putih), which is led by Prabowo Subianto.

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  • Cement Sales in Indonesia Rise on Infrastructure and Property Projects

    Cement sales in Indonesia surged 21 percent month-to-month (m/m) to 5.6 million ton in September 2014 from 4.6 million ton in the preceding month. Widodo Santoso, Chairman of the Indonesian Cement Association (ASI), said that the increase in Indonesian cement sales was supported by the start of a number of central and regional government infrastructure projects. Santoso also detected an increase in development of property projects. Infrastructure and property are the sectors that absorb most cement.

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  • Update on Indonesian Cement Industry: Prospects for 2014 and Beyond

    Indonesian cement sales fell 25 percent to 3.7 million tons in July 2014 from 5 million tons in the same month last year. This sharp decline is attributed to the Lebaran holiday (also known as Idul Fitri in which Muslims celebrate the end of the fasting month) when businesses are closed as well as Indonesia’s July 2014 presidential election. Slowing cement sales are also caused by declining economic growth (5.12 percent yoy in Q2-2014). Cement sales are a key indicator for construction activity (infrastructure and property development).

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  • Indonesia’s Non-Oil & Gas Manufacturing Industry Grows 5.49%

    Growth of Indonesia’s non-oil and gas manufacturing industry in the first half of 2014 reached 5.49 percent (year-on-year) and thus outpaced the country’s general economic growth of 5.17 percent (yoy) over the same period. Indonesia’s manufacturing industry growth was particularly supported by growth in a number of sectors: Food, Drinks and Tobacco (+9.62 percent), Wood and Other Forest Products (+6.35 percent), Transportation Equipment Industry and Machinery (+4.52 percent), and Other Industrial Products (+15.77 percent).

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  • Bank Indonesia Comments on Slowing Economic Growth in Q2-2014

    Indonesia’s gross domestic product (GDP) growth in the second quarter of 2014 slowed to 5.12 percent (year-on-year, yoy), thus decelerating compared to the nation’s GDP growth in the previous quarter (5.22 percent yoy). The Q2-2014 GDP growth result was lower than the figure that was projected by the central bank of Indonesia (Bank Indonesia). The institution previously stated that it expected Q2-014 economic growth to reach 5.3 percent (yoy). Below are some comment of Bank Indonesia on economic growth in the second quarter.

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Latest Columns 2014 Elections

  • Property Sector of Indonesia: Still Rising but Growth Slows Temporarily

    Property Sector of Indonesia: Still Rising but Growth Slows Temporarily

    According to Ferry Salanto, Associate Research Director at Colliers International Indonesia, the weakening rupiah exchange rate against the US dollar in recent months has resulted in an increase of property sales in Indonesia, particularly apartments. Salanto says it is not just an investment for the buyer but also a matter of security. Property is currently a better and safer alternative to the holding of rupiahs. In the third quarter of 2013, property sales increased despite the higher benchmark interest rate and the tightening property credit environment.

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  • Spending on Advertising in Indonesia Expected to Jump 20% in 2014

    Spending on Advertising in Indonesia Expected to Jump 20% in 2014

    Spending on advertising in Indonesia is expected to jump 20 percent to IDR 140 trillion (USD $12.4 billion) in 2014. This expected growth is mainly the result of increased spending due to Indonesia's legislative and presidential elections as well as the 2014 FIFA World Cup in Brazil. The former means that Indonesian political parties will increase spending to reap popularity through media exposure, while the latter will draw millions of spectators and readers due to the popularity of football in Indonesia and thus becomes interesting for advertisers.

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  • Towards Indonesia's Presidential Elections: a Profile of Prabowo Subianto

    Prabowo Subianto President of Indonesia in 2014? Indonesia Investments

    If presidential elections were to be held today, it is probable that Prabowo Subianto would be chosen by the Indonesian electorate to become Indonesia's next president. Various surveys indicate that Prabowo, a former high military officer as well as a successful businessman, is the most popular person to replace incumbent president Susilo Bambang Yudhoyono in mid 2014 when new presidential elections will be held (which are not joined by Yudhoyono as he is finishing his second and final term as president).

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  • Indonesia’s 2014 Presidential Candidates; a Profile of Aburizal Bakrie

    Although Indonesia’s next presidential election will be held in mid-2014, Aburizal Bakrie already announced in 2012 that he would run for the presidency on behalf of the Golkar party, one of the leading political parties of Indonesia and once the strong political vehicle of Suharto during the New Order regime (1965-1998). However, Bakrie, chairman of Golkar and often referred to by his nickname 'Ical', is one of the most controversial figures in modern Indonesian politics and business.

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  • Government: Indonesia's Economic Growth Will Not Reach 7 Percent in 2014

    Various high government officials, including president Susilo Bambang Yudhoyono, Finance minister Agus Martowardojo and National Development Planning minister Armida Alisjahbana stated that Indonesia's economy is estimated to grow between 6.3 and 6.8 percent in 2014. Its main economic pillars of support are thought to be (foreign and domestic) investments, domestic consumption, and government expenditure. Poverty is targeted to be reduced to ten percent of the population.

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  • The Tough Road of Yudhoyono's Democratic Party towards the 2014 Elections

    Yudhoyono's Democratic Party towards the 2014 Elections - Richard van der Schaar

    Last Saturday, the Democratic Party (PD) selected Indonesia's president Susilo Bambang Yudhoyono as the new chairman of the crumbling political party through an extraordinary congress in Bali. Yudhoyono thus replaced former chairman Anas Urbaningrum, who resigned from his post last month after being accused of involvement in a corruption case. It will be Yudhoyono's task to repair the image of his PD party, while still performing his duties as president.

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  • Names that Top the Presidential Polls Are Not Considered a Step Foreward

    Yesterday Lembaga Survei Indonesia (LSI), a leading Indonesian public opinion research institute, published the result of a survey that indicated Megawati Soekarnoputri is leading the poll to become the country's next president in 2014. In the survey she is closely followed by Aburizal Bakrie and Prabowo Subianto. This preliminary result can be regarded negative as these names are 'products' of the old regime and thus will not support further democratization.

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