• Investment in Indonesia: Investors Not Attracted by Tax Incentives

    Although the Indonesian government offered various attractive incentives to investors (tax holidays and tax allowances) in 2017 in an effort to encourage investment in pioneering industries (particularly the downstream oil & gas industry), there were no companies that took advantage of these incentives. How come investors were not interested in these incentives?

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  • Bank Kesejahteraan Ekonomi Delays IPO as New Investor Arrived

    Indonesian financial institution Bank Kesejahteraan Ekonomi delayed its initial public offering (IPO) on the Indonesia Stock Exchange because it welcomed a new investor. Earlier Bank Kesejahteraan Ekonomi planned to conduct its IPO at the start of 2018. It still targets to become a publicly listed company this year but in the second half of 2018, the earliest.

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  • Positive & Negative Consequences of Rising Crude Oil Prices

    The Indonesian government emphasizes that the higher-than-estimated crude oil price will not destabilize the 2018 state budget. While the government set its Indonesian Crude Price (ICP) at USD $48 per barrel in the 2018 state budget, West Texas Intermediate (WTI) and Brent have already surpassed the USD $60 per barrel level, significantly higher than the assumption of the Indonesian government and therefore triggering some concern over rising energy subsidies.

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