• Indonesia Suspends OPEC Membership after Oil Production Cut

    While the Organization of the Petroleum Exporting Countries (OPEC)'s agreed to cut production (a deal that was joined by non-OPEC members, most notably Russia) at the organization's 171st meeting (held in Vienna on Wednesday 30 November), Indonesia decided to temporarily freeze its OPEC membership as it is reluctant to agree to a five percent cut in national crude oil production. Indonesian Energy and Mineral Resources Minister Ignasius Jonan announced this decision.

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  • Stock Market Update: Asian Equities Rally on OPEC Oil Production Cut

    For the first time since 2008 the Organization of Petroleum Exporting Countries (OPEC) agreed to cut crude oil output on Wednesday (30/11) with especially Saudi Arabia ready to accept a big cut in national oil production. "Unlimited" crude oil production led to the supply glut that gave rise to persistently low oil prices and deflationary pressures. Asian stocks climbed on the back of this oil production cut. In early Asian trading on Thursday (01/12), gainers were led by mining, oil and coal producers.

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  • Geothermal Exploration in Indonesia: Land Tax Removed

    In an attempt to attract investment in geothermal exploration in Indonesia, the central government decided to remove a land tax for companies that explore geothermal energy resources through a new decree. In 2017 this land tax will be scrapped for all companies that hold a geothermal business permit and are still in the exploration stage. According to information released on the website of Indonesia's Finance Ministry companies are entitled to a 100 percent tax reduction in land tax each year, for up to seven years.

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  • Emerging Market Currencies & Stocks Update: Indonesia's Rupiah

    Indonesian stocks and the rupiah are under pressure on Thursday (24/11). Amid rising expectation of a Fed Funds Rate hike before the year-end, the US dollar rose to a 13 year-high implying all emerging market currencies are sliding. The Indonesian rupiah, one of the more vulnerable emerging market currencies, had depreciated 0.39 percent to IDR 13,542 per US dollar by 10:20 am local Jakarta time. Meanwhile, the benchmark Jakarta Composite Index had fallen 0.85 percent to 5,167.87 points by the same time.

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