Market News

Market News: 15-21 January 2017

"BI Records 0.67 Percent Inflation on Third Week of January” - Tempo - 21 January 2017

Bank Indonesia has announced that the inflation rate has increased to a 0.67 year to date and could reach 3.19 percent. This inflation was triggered by increasing electricity and chili prices. Other sources include the removal electricity subsidy and the increase of prices for vehicle documents. However, the government will keep the inflation under control and take efforts to prevent crop failures need to be taken in order. 

Read full article here

"2018 Asian Will Upsurge Local Economy” - Antara News - 19 January 2017

South Sumatra Governer announced that the 2018 Asian Games will trigger the local economic growth. Not only economic growth, the 2018 ASIAN games will also develop several infrastructures nearby. With the funds coming the government, they will have to keep socializing so all civilians can know.

Read full article here

"Indonesia is Deemed Successful in Passing Economic Turbulence” - Kompas - 17 January 2017

The Indonesian central bank has deemed that Indonesia has passed the global economic turbulence successfully. Though the Indonesian currency has dropped 3% for the US dollar, it is still relatively strong. Other than that low inflation has help contribute as well. The 2017 Indonesian Budget forecast sees better commodities, allocations through various sectors, as well as social sectors.  However, the slow economic growth in China may shed a risk for Indonesia’s own economic growth.

Read full article here

"Inflation Can Push in Raising Interest Rate” - Media Indonesia - 16 January 2017

After a year of monetary easing, Indonesian Central Bank is expected to have difficulties maintaining the direction of this policy due to the surge of inflation this year.  This potential increase is expected to be a major cause in the upward trend of rising interest rates. With global pressure and an unpredictable inflation, the rise of foreign exchanges reserves has slowed the bank’s monetary policy. Nevertheless, the rise of interest rate is not in the near future.

Read full article here

"Jokowi Hopes Economies in the Region Can Grow Faster” - Tempo English - 15 January 2017

The Indonesian President hopes that economy of all regions in Indonesia can grow in 2017. In the 2016 revised state budget the government allocated a bigger portion for regionals than in the central government. For the 2017 budget, the government has prepared a budget of IDR 764.9 trillion for regions in Indonesia, a budget that is bigger than other sectors. That is done is hopes that the economic growth in the regions can grow even faster. 

Read full article here

 

 

Market News: 8-14 January 2017

"Indonesia Sees US$0.82 Billion Surplus in December 2016: BI” - Tempo English - 14 January 2017

Indonesian central bank forecast that the trade balance in December 2016 has reached a surplus due to rising exports and prices of commodities. Other infuences include textiles, copper, rubber, nickel, and coal exports. The surplus is recorded since October 2016 with USD 1.21 billion and a USD 0.84 billion in November 2016.

Read full article here

"Indonesian Government Assured that Foreign Mining Divestment is 51 Percent” - CNN Indonesia - 13 January 2017

The government assured that new policies for foreign mining companies in form of divestment as much as 51% for domestics investments. This is because the president wants a majority of the mining sector to be controlled domestically.  The new policy is applied to every mining business license whether closed, open, or underground mining.  

Read full article here

"Freeport Shares Soars 5.93 Percent After Being Discussed” - CNN Indonesia - 12 January 2017

Investors responded positively to the government plan to renovate regulations for the completion of the divestment plan of PT Freeport Indonesia. The Ministry of Energy and Minerals Resources will allow divestement of shares through public offering scheme or IPO.  This act will monitor the mining operation in Indonesia which makes this a great step taken by the Indonesian government. Therefore PT Freeport must release 10.64 percent to make the shares by the government become 20 percent; while the last 10 percent will be effective by 2020.

Read full article here

"Minister Expects US$100mn Investment in Fishery from Japan” - Tempo English - 11 January 2017

The Indonesian government plans to explore of establishing a partnership with Japan on the fishery sector.  Japan is one of Indonesian’s most important business partners and the Indonesian government is planning to seek partnership with Japan private sectors. Collaborations could be in form of ports in the outer region districts, it could be in form of cold storage constructions.  These types of investment  may be worth somewhere between US 50 million and USD 100 million.

Read full article here

"Ministry Imposes 9.1 percent VAT for Tobacco Products” - Tempo English - 10 January 2017

The Finance ministry has set a 9.1 percent of Value Added Ta (VAT) for tobacco products in 2017. Chief of Fiscal Policies of the Finance Ministry declared that the Indonesian government plans to make VAT of products to percent through several stages. Though detailed as to when that be, it will normalize around 2019. The tobacco products that are subjected to this regulation are cigarettes, cigars, chopped tobacco, and other tobacco products.

Read full article here

"Ministry of Industry to Focus on Developing Vocational Education Industry” - Kompas - 9 January 2017

The rise of the heavy use of foreign workers in Indonesia has gained the attention of the Minister of Industry.  So, in support of the government, the ministry of industry will develop a competency based industries of vocational education. The aim is so that local workforce can compete and have competent that is needed in the country.  Rather than having foreign workforce in place where domestic workers can be, the government wants to use domestic workers so the country can develop. 

Read full article here

"Transport Ministry Optimistic LRT Project Phase 1 Will be Done by Mid-2018” - Kompas - 8 January 2017

The Ministry of transportation is optimist that the 1st phase of the LRT to be finished by mid-2018, which is the Cibubur-Cawang route. Currently the development of the first phase is around 17 percent. The reason this process is going quickly is because of the use concrete technology.  The step after the finished infrastructure of phase 1 is the installation of LRT signal, bullet trains, and the LRT System. 

Read full article here

 

 

Market News: 1-7 January 2017

"Indonesia Can Export Farming Tools” - Kompas - 7 January 2017

The ministry of agriculture has launched a self-sufficient in procurement of equipment and agricultural machinery.  If realized that this method could work, then the procurement of the equipment and agricultural machinery can also be exported.  With hopes that not only state owned companies but also private own and research center can join with the new procurement. Since the agriculture is one of the most important sectors supporting the nation’s economy and affecting the pace of national growth. 

Read full article here

"Electricity and Fuel Oil Shares a 5% Inflation Rate” - Media Indonesia - 6 January 2017

Both electricity and fuel oil has a share no more than a 5% inflation rate.  With the electricity price rising effective immediately in January 2017 then again in May 2017, the subsidy will gradually be withdrawn.  Homes with 900 VA will no longer receive subsidies from the government, in addition to the withdrawal of 3kg LPG subsidy. However, the impact of the inflation can be adjusted if food prices could be controlled. 

Read full article here

"Pertamax and Pertalite Fuel Prices Rise IDR 300 per Liter” - CNN Indonesia - 5 January 2017

PT Pertamina has increased the fuel price once again for Pertamax, Pertamax Plus,  Pertamax Turbo, Pertamax Turbo, Pertamina Dex, Dexlite, and Pertalite due to the condition of rising fuel prices worldwide. Pertamina will keep on giving the best customer service for those who has been a loyal consumer. With fuel demand increasing every day, this shows that consumers have become more in tune with the specific needs of their car. This also means that they are gradually leaving the subsidy fuel given by government.

Read full article here

"IHSG (JIC): Rises to 25.21 Points” - SindoNews - 4 January 2017

At 8:55 am IHSG opened with shares decreasing to 5.96 poins to 5.270,02 and keeps on weakening on Wednesday.  With 419 stocks, 169 of them rise, 151 decreases, and 99 of them stable. Most of the stock shares end in the green zone. The economic expectation in a situation becomes one of the internal factors of index rebound, while the external factors which is the upward rise of the Asian Market becomes a positive outcome for JIC. Therefore, the JIC closes in the green zone with the index up to 0.48% or 25.21 points to 5.301.18.

Read full article here

"Rupiah Predicted To Be in a Downwards Spiral in 2017” - SindoNews - 3 January 2017

The movement of the Indonesian Rupiah this year is predicted not be in the safe zone. The Yen is standing strong against the USD; which makes the Indonesian Rupiah to weaken. It is predicted to be around IDR 13.485/USD to IDR 13.420/USD.  However the central bank of Indonesia is optimist that this year inflation could be below 3 percent. The new data makes is better that the original inflation forecast of 3 to 5 percent.

Read full article here

"Buffalo Meat Could be cheaper” - Liputan6 - 2 January 2017

Entrepreneurs demand the government to evaluate the regulation which says that the Bureau of Logistics could import buffalo meat. The entrepreneurs regarded that The Bureau does not have any experiences in the field of meat distributions. That is because they are still depending on 3rd parties to distribute the buffalo. However, if the private companies directly distribute it, their prices could be far cheaper.  The price of the buffalo meat itself could be down below IDR 65.00/KG. 

Read full article here

"PLN: Fixing Electricity Supply in North Sumatra after ‘Black Out'” - Liputan6 - 1 January 2017

The problems of the supply in electricity in North Sumatra are because of the gas supply. It stopped distributing suddenly which in turn makes the PLTGU stopped working making North Sumatra experience a black out.  This also makes an uneven stock supply of electricity system in several places in Sumatra. Nevertheless, PLN is repairing the situation at hand and by normal most of Sumatra Area have normalized once more.

 

Read full article here