Market News - 29 January-4 February 2017
“Globail Oil Price decline amidst concern of US Productions” - Metro TV News - 3 February 2017
Global oil prices declined on thursday (Friday morning local time). The US oil reserve soared unexpectedly to 6.5 million barrel, going up 5 percent . The addition of the oil reserve exceeds analyst expectation. Therefore the investors are concerned that a rising US production will offset several decline in production from other major manufacturers.
“Europe's Investments in Indonesia Reach US$13.3 Billion” - Tempo English - 2 February 2017
The Investment Coordinating Board (BKPM) notes that European investments has reached USD 13.3 billion in the last five years. Also that the goevrnment will push for other developments in 2017 in other parts of the country. Business sectors that aremost likely to invest are the auto industry, telecommunication, energy, mineral, aviation, and auto component. Other sectors include basic chemicals and pharmaceutical. The top five investing countries are Netherlands, the UK, France, Luxembourg, and Germany.
“Sugar Price Ceiling of Rp 12,500 per Kg Effective in March” - The Jakarta Post - 2 February 2017
Starting march, he trade ministry will impose th price ceiling of sugar 50 IDR 12.500/kg. Raw sugars will by manufactured by local producers before going to distributers, hoping that by doing this the sugar price will go down. Nonetheless, traders felt that they should have been informed about the margin distributions, and more importantly the retail price instead of the wholesale price. The trade minister however have said that the decision was made to help control the price of sugar.
“Indonesian Manufacturing Industry Improves, PMI Survey Reveals” - Jakarta Globe - 2 February 2017
After months of contraction the Indonesian manufacturers indicated that the health of the industry has improved.The PMI surveyed that it increased to 50.4 in January. The participants of the survey include over 300 industrial companies. Overall, around 82 percent of the survey participants expecting a higher output this year.
“Oil Palm Production Falls Only Slightly Despite Severe Drought” - The Jakarta Post - 1 February 2017
Despite the prolonged drought, the production of palm oil only fell 3 percent compared to two years ago. Howecer the reserve stock of 2016 has dropped drastically because of a government policy that was activated in that same year.Though CPO prices were weak in the beginning of 2016 it kept on rising till the end of 2016. The reason was because of the increase of demand for biodiesel and the food industry amidst an increase of global population.
“Post-Harvest: Indonesian Bureau of Logistics Allocated IDR 2.3 Trillion for Infrastructure Development” - Kompas - 1 February 2017
The Indonesian Bureau of Logistics (Bulog) has prepared around IDR 2.3 trillion for 2017.The fundings comes from the government capital and its own internal funds. The alocations of the funds are for infrastucture development after harvest, such as drying, processing, and packaging. These funds and alocations process will be handled directly by the bureau of logistics.
“Pelindo II Eyes Cooperation with 3 Major Global Shipping Lines” - Tempo - 31 January 2017
Pelindo 2 will cooperate with 3 global shipping lines and transform Tanjung Priok as an intenational hub. The aim is to lower logistics cost by cargo consolidation service, as well as to compete with the neighbooring countries. Tanjung Priok's status will be effective in the second half of 2017.
“Indonesia Seeks ‘Back Up' of US Investment: BKPM” - The Jakarta Post - 30 January 2017
Indonesia may have to put more effort to attract US investors in the wake of the new presidency. With possible new regulations and policies for the investors by their government; as well as pressure to invest domestically in their own country. Indonesia, at the same time, has to try and seek “back up” investors from other countries while working extra hard to draw interest of the US.
"Government Launches Import Facility for Export-Oriented SMEs” - The Jakarta Post - 30 January 2017
Indonesian government has introduced an import facility called the Export Purposed Import Facility (KITE) to annuel taxes and other tariffs for SME. By registering at the custom's office, SME's can start reaping its benefits such as a reduction of importing materials and get an annual 9% loan from Indonesian Eximbank, as long as 75% of their products are being exported.The government hopes by implemanting this new facility can reduce the production cost by 25% and therefore boost exports.