Below is a list with tagged columns and company profiles.

Today's Headlines Investment

  • Household Consumption, Public Investment Boost Indonesian Economy

    There is plenty of room for optimism about the direction of Indonesia's economic growth this year. Indonesia's Statistics Agency (BPS) announced on Friday (05/08) that the economy of Southeast Asia's largest economy expanded by 5.18 percent (y/y) in the second quarter of 2016, a figure that exceeded all expectations and forms a remarkable jump from the 4.66 percent (y/y) GDP growth figure in Q2-2015 and 4.91 percent (y/y) in Q1-2016. As a result, Indonesia's benchmark Jakarta Composite Index is currently near record levels.

    Read more ›

  • Growth of Foreign Direct Investment (FDI) in Indonesia Slows in Q2-2016

    Direct investment in Indonesia (both domestic and foreign) totaled IDR 298.1 trillion in the first half of 2016, up 14.8 percent from investment realization in the same period one year earlier. Foreign direct investment (FDI) was recorded at IDR 195.5 trillion¹, up 12.3 percent (y/y) - and accounting for 65.6 percent of total investment realization in the first six months of 2016 - while domestic direct investment (DDI) rose 20.0 percent (y/y) over the same period. On a quarter-to-quarter basis, FDI into Indonesia rose 7.9 percent, considerably lower than the 17.1 percent (q/q) growth pace in the preceding quarter.

    Read more ›

  • World Bank Releases June 2016 Indonesia Economic Quarterly Report

    The World Bank released the June 2016 edition of its Indonesia Economic Quarterly (IEQ) report on Monday (20/06). Recently, the Washington-based institution took a rigorous step by downgrading its 2016 global economic growth forecast from 2.9 percent (y/y) to 2.4 percent (y/y). This is a significant downgrade that was primarily due to the weak performance of commodity exporters. Despite this downgrade the World Bank still sees a resilient Indonesian economy, reflected by a GDP growth forecast of 5.1 percent (y/y) in 2016 and 5.3 percent (y/y) in 2017.

    Read more ›

  • 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.

    Read more ›

  • Foreign Investment: Bilateral Cooperation Indonesia & South Korea

    Investors from South Korea plan to invest up to USD $18 billion in Indonesia. Indonesian President Joko Widodo, Chairman of the Chamber of Commerce & Industry (Kadin) Rosan Perkasa Roeslani, Trade Minister Thomas Lembong and Foreign Minister Retno Marsudi witnessed the signing of business agreements and memorandums of understanding (MoU) in Seoul on Monday (16/05), covering bilateral cooperation in infrastructure development such as power plants, gas pipelines and railways as well as trade, creative economy, environment, and maritime affairs.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 12th Economic Policy Package Indonesia: Ease of Doing Business

    The Indonesian government released the 12th economic policy package on Thursday (28/04). This latest edition focuses on enhancing the ease of doing business for the small and mid-sized companies in Indonesia in a bid to attract more investment, hence giving a boost to economic growth. In the 12th package the government announces it has cut a number of procedures and permits, as well as costs, required for the development of a business. Indonesia's Chief Economics Minister Darmin Nasution unveiled the package on Thursday in Jakarta's Presidential Palace.

    Read more ›

  • Indonesian Bonds: an Attractive Investment Instrument?

    Indonesia's state bonds are expected to remain a popular investment instrument in the second quarter of 2016 - perhaps even the most popular instrument - due to stable and more attractive yields compared to other investment instruments. Although the Indonesian rupiah and the benchmark stock index (Jakarta Composite Index) have both strengthened markedly over the past week (particularly supported by higher crude oil prices), the global economy remains plagued by uncertainties (China's economic slowdown and possible higher borrowing costs in the USA). Analysts say that in this context investor appetite for Indonesian bonds increases.

    Read more ›

  • Foreign Direct Investment into Indonesia Grows 19.2% in 2015

    In rupiah terms, foreign direct investment (FDI) into Indonesia increased by 19.2 percent year-on-year (y/y) to IDR 365.9 trillion in 2015, according to the latest data from the Indonesia Investment Coordinating Board (BKPM). The BKPM, the central government's investment services agency, said FDI was strong in the fourth quarter of 2015 - rising 26 percent (y/y) - on the back of the government's recently unveiled series of economic stimulus packages.

    Read more ›

Latest Columns Investment

  • Investment in Indonesia: 59 Investors Used BKPM's 3-Hour Licensing Service

    According to the Indonesia Investment Coordinating Board (BKPM), the government agency that provides investment services and forms the primary interface between the Indonesian government and businesses, it has assisted 59 companies through the three-hour licensing service that was started on 11 January 2016. Originally, this service was only available to big investors who either invest at least IDR 100 billion (approx. USD $7.5 million) or generate 1,000 new job positions for Indonesian workers. However, a Presidential Instruction also opened this special service to investment in four infrastructure-related sectors.

    Read more ›

  • Bank Indonesia's Loosening Monetary Policy: Impact of Lower Interest Rates

    In the first three policy meetings of 2016, Indonesia's central bank (Bank Indonesia) cut its benchmark BI rate gradually yet aggressively from 7.50 percent to 6.75 percent as inflation, the rupiah rate and Indonesia's current account deficit were regarded as 'under control'. At the same time, Indonesia's lender of last resort acknowledged the BI rate has failed to influence borrowing costs and market liquidity effectively and therefore decided to adopt the seven-day reverse repurchase rate (reverse repo) as the nation's new benchmark starting from August 2016.

    Read more ›

  • Bank Indonesia Revises Down 2016 Economic Growth Projection

    The central bank of Indonesia (Bank Indonesia) revised down its projection for Indonesia's economic growth in 2016 to the range of 5.0 - 5.4 percent (y/y), slightly below its previous forecast in the range of 5.2 - 5.6 percent (y/y). Bank Indonesia Governor Agus Martowardojo said the central bank decided to trim its projection for gross domestic product (GDP) growth this year due to sluggish global economic growth, low commodity prices, and Indonesia's slightly disappointing Q1-2016 GDP growth figure at 4.92 percent (y/y).

    Read more ›

  • Infrastructure Development in Indonesia: $450 Billion Required

    It is estimated that Indonesia will need some USD $450 billion in funds to finance the government's infrastructure development plans for the 2015-2019 period. However, through the state budgets the government can only deliver USD $230 billion, or roughly 50 percent of required funds. The remainder should originate from the private sector (30 percent of total funds) and state-controlled enterprises (20 percent). However, is it likely that the private sector (both foreign and domestic) is to come up with USD $141 billion for investment in infrastructure up to 2019?

    Read more ›

  • 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.

    Read more ›

  • Understanding Precious Metals Trends - Investment Instruments Indonesia

    For some Indonesian investors, trends in the precious metals markets might seem difficult to understand. This is often because changing valuations are often based on external events that are not directly related to the Indonesian economy. But when we look at the global factors that typically create rising and falling price moves in the precious metals, it becomes easier to find ways of positioning investments for what is likely to come next.

    Read more ›

  • Business Update Indonesia: BKPM Wants Desk for Chinese Investors

    In order to improve communication and avoid language barriers, the Indonesia Investment Coordinating Board (BKPM) plans to open a special service desk for Chinese investors. BKPM, the investment services agency of the Indonesian government, sees language barriers between Chinese investors and Indonesians as a major obstacle; one that blocks foreign direct investment from China into Indonesia. The new desk, specifically for investment from China or Hong Kong, should improve communication hence improving realization of China's investment plans.

    Read more ›

  • Business in Indonesia: Investment Growth Solid but Bottlenecks Persist

    The World Investment Report 2015 states that inflows of foreign direct investment (FDI) into Indonesia grew 20 percent (y/y) to USD $23 billion in 2014. As such FDI growth in Indonesia outpaced FDI growth recorded in Singapore (+4 percent y/y to USD $68 billion) and Vietnam (+3 percent to USD $9.2 billion), causing optimism that Indonesia - Southeast Asia's largest economy - will continue to form a lucrative investment destination in the Asian continent for foreign investors in the years ahead.

    Read more ›

  • Obstacles in Indonesia’s Investment Climate: A Chinese Perspective

    Indonesia is not the easiest place to invest for foreign investors. This is reflected by the World Bank's Doing Business 2014 index in which Indonesia ranks 120th. In a business forum, held last week in Beijing, Chinese businessmen expressed a number of matters that blocked or seriously delayed their investments in Indonesia. For Indonesia (both domestic and foreign) investment realization, particularly in infrastructure, is important as investments is considered the main driver for the country’s economic growth in 2016.

    Read more ›

  • Mutual Fund Management in Indonesia: Plenty Room for Growth

    After Indonesia’s political year of 2014 ended, financial institutions expect to experience better times in 2015. Last year, economic growth of Indonesia slowed to a five-year low of 5.02 percent (y/y) due to weak exports, the high domestic interest rate environment, and political uncertainties caused by Indonesia’s legislative and presidential elections. This year, however, economic growth is expected to accelerate - albeit slightly - implying stronger purchasing power. One of the businesses that will profit is mutual fund management.

    Read more ›

No business profiles with this tag