On 20 August 2017, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economy and market-related matters such as the proposed 2018 State Budget, foreign investment in the hospital industry, the trade balance, the current account balance, the automotive industry, public-private partnerships, and more.

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Stakeholders in Indonesia's plastics industry are not happy to see the government eager to impose an excise tax on plastic bags in the proposed 2018 state budget. Fajar Budiyono, Secretary-General of the Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas), is against the excise tax saying it will not be a solution to environmental pollution. Instead, the government should focus on enhancing plastic waste treatment.

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So far the Lippo Group only managed to acquire 16.8% of the total land that is required to develop the ambitious Meikarta township project. Meikarta is designed to become a full-fledged township, equipped with high-class and modern residential, commercial, industrial, cultural and educational centers, located on a 500-hectare plot of land 34 kilometers to the east of Jakarta, including 100 hectares of open green space, 250,000 units of prime residential property, and 1,500,000 m2 of prime commercial space.

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Traditionally, the Indonesian President reveals the government's proposal for next year's state budget one day ahead of the Independence Day celebrations. This time, President Joko Widodo announced a rather ambitious target in terms of economic growth. The central government proposes the GDP growth target figure for 2018 at 5.4 percent year-on-year (y/y). The budget proposal requires approval from the House of Representatives (DPR).

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