• Indonesia to Release 15th Economic Policy Package Soon

    The government of Indonesia will soon release the 15th economic policy package in an effort to maintain the "structural reform momentum" and encourage investment into Indonesia as well as macroeconomic growth. Based on the words of Indonesian Chief Economics Minister Darmin Nasution, the 15th policy package will touch on subjects related to deregulation, (improvement of the) investment climate, infrastructure, medical equipment, as well as the textile and agri industries.

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  • Update Tax Amnesty Program Indonesia: Disappointing 2nd Phase

    The first phase of Indonesia's tax amnesty program was a success in terms of tax declarations and state revenue (penalties). Fund repatriations, on the other hand, were disappointing as - apparently - Indonesian tax payers find it not attractive enough to transfer these funds into Indonesian investment instruments or lack confidence in Indonesia's political and financial stability (perhaps still haunted by traumas from the Asian Financial Crisis in the late 1990s). However, Indonesian Finance Minister Sri Mulyani Indrawati remains optimistic that repatriations will rise soon now the winner of the US presidential election is known.

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  • Crude Palm Oil Industry Indonesia: Comprehensive Roadmap Needed

    Global demand for vegetable and animal oils is expected to reach 200 million tons in 2016, up 3 percent from demand one year earlier. About 70 million tons of total global vegetable and animal oils demand this year consists of crude palm oil (CPO). Indonesia, the world's largest CPO producer and exporter, is expected to produce about 30.5 million tons of CPO in 2016. Meanwhile, in the first nine months of 2016 Indonesia's CPO export realization stood at 18 million tons.

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  • Indonesia Allows Private Investors to Build Oil Refineries

    The Indonesian government now allows private investors to develop oil refineries in Indonesia, effectively ending state-owned energy Pertamina's (virtual) monopoly. Before this new regulation, private companies had to cooperate with Pertamina to build oil refineries in Southeast Asia's largest economy. The new policy is an effort to boost domestic oil refinery capacity in Indonesia (hence limiting the need for refined fuel imports) and improve the investment climate by opening this industry to the private sector. This sector can also apply for tax incentives.

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