While China’s manufacturing indices have been rather depressing of late, Indonesia’s numbers are much healthier.
The PMI score came out at 51.7 in April – up from March, a six-month high, and the second highest in the last few years. So, all good? Continue reading »
Reverse the recent protectionist trend, invest more in infrastructure, improve the quality of policy-making, cut energy subsidies. Even the World Bank admits that it’s starting to sound like a broken record in Indonesia, according to Jim Brumby, its lead country economist.
But, while concerns about complacency undermining Indonesia’s economic boom are not new, the World Bank believes the risks to growth are getting greater. Continue reading »
By Jacek Siwek of Asia Pulp & Paper
Indonesia is the largest of south east Asia’s economies. It is also home to the third largest expanse of tropical forest in the world. Matching the demands of a growing population to the protection of some of the world’s most valuable forestland is a tough challenge and one felt in many timber-producing developing nations. It is a challenge to which governments and companies are responding. Continue reading »
The top line in Indonesia 2012 gross domestic product figures published on Tuesday is clearly positive - GDP rose by 6.1 per cent in the fourth quarter of last year and by 6.2 per cent in the year as a whole.
That was down on 2011’s 6.5 per cent but only slightly, with strong domestic consumption offsetting weaker commodity exports. But there was a worrying drop in investment growth. If that continues as the 2014 presidential election approaches there could be trouble. Continue reading »
A moment in Indonesia’s economic development – its first annual trade deficit.
Figures on Friday showed Indonesia’s trade deficit narrowed in December to $0.15bn from $0.61bn in November. That left the deficit for the whole of 2012 at $1.63bn. Not big by global standards, but big enough to worry economists who are particularly concerned about the weakness in Indonesia’s traditional great strength, commodity exports. Continue reading »
With economic nationalism and government interference on the rise in the run up to Indonesia’s elections in 2014, investors keep complaining about the deteriorating investment climate.
But, according to the latest figures from Indonesia’s investment co-ordinating board (BKPM), direct investment by foreigners and Indonesian continues to reach new record levels. Continue reading »
While Jakarta struggles with floods this week, its stock market is hitting record highs.
Of course, there is no direct connection between the water washing through the streets and the financial flows in the equity market. Even the links to overall economic growth are fairly remote. But the floods are a painful reminder of the growing pains of emerging markets – pains which can make themselves felt if Indonesian citizens ever decide that the authorities aren’t doing enough to address the country’s many infrastructure gaps. Continue reading »
Despite a big round of minimum wage hikes, Indonesia’s manufacturing belt hasn’t seen the end of the recent wave of labour disputes.
Wednesday witnessed the latest in a series of mass protests organized in recent weeks in Jakarta by workers’ unions complaining about “outsourcing”— local lingo for taking on temporary workers without the additional cost of providing healthcare and pension benefits. Continue reading »
Indonesia posted a record trade deficit of US$1.54bn in October as the country continued to struggle with weak demand for its commodities exports and rising fuel imports. Continue reading »
Indonesia’s central bank on Thursday left its benchmark rate unchanged at a record low of 5.75 per cent.
That makes nine months in a row without a shift. A bit boring for bank watchers, yes. But it’s a real tribute to the resilience of the Indonesian economy at this stage in the global crisis. Continue reading »
Indonesia’s economy grew by an enviable 6.2 per cent in the third quarter, in line with market expectations. With benchmark rates at a record low and exports responsible for a far smaller portion of the economy than its neighbours, Indonesia appears to have cemented its place as an economy with a high resistance to global headwinds.
Though some had been expecting a little more, most analysts still seem confident that Indonesia will continue to chug along quite nicely. Continue reading »
Indonesia should consider revamping its corporate governance standards in the wake of the Bumi affair.
Even though the case involves a dispute among private shareholders, the government must tread carefully because the affair is seen as “a bad precedent” for the country.
That’s the view of Chatib Basri, chairman of the government’s investment coordinating board, (pictured) who told beyondbrics of his concern about Bumi’s impact on the investment climate. Continue reading »
As Western donors prepare to pull out of Aceh, nearly eight years after the Indian Ocean earthquake and tsunami that killed 170,000 people in the province, the ultimate challenge is whether it can fend for itself. In the provincial capital of Banda Aceh, the signs are encouraging.
New Japanese cars fill the reconstructed streets, teenagers pack out the coffee shops in the city centre and shoppers buzz around the city’s first shopping mall – the symbol of arrival for every up-and-coming Indonesian mid-tier city. Continue reading »
Although Indonesia has proved adept at exploiting its mineral wealth, its human resources are lagging behind.
Southeast Asia’s biggest economy is facing an “upcoming talent apocalypse” unless the government and companies take drastic action to improve the quality of the labour force, management consultants at Hay Group argue in a new report. Continue reading »
Indonesia continues to defy the global gloom and fears about a deteriorating domestic business environment, reporting record foreign direct investment for the second consecutive quarter.
Although China, India and some other emerging markets are feeling the effects of the slowdown in the west, south-east Asia’s biggest economy seems to be motoring ahead thanks to strong domestic demand and the country’s fast-growing middle class. Continue reading »