The net interest margin (NIM) of Indonesian banks rose while the nation's credit growth slowed and economic growth remained 'bleakish'. In June 2016 the average NIM of Indonesian banks was recorded at 5.59 percent compared to 5.32 percent in the same month one year earlier. The higher NIM is the result of improved credit quality, reflected by a lower non performing loan (NPL) ratio. NIM is the difference between interest income generated by banks and the amount of interest paid out by banks to the lenders. A higher NIM implies that the bank is more profitable.

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The competitiveness of Indonesia's steel industry remains weak. One of the main issues being the high gas price in Indonesia. High input costs make it difficult for the domestic steel industry to expand as investors prefer to import steel from abroad (mainly from China) for their infrastructure projects in Indonesia. Southeast Asia's largest economy needs about 12.5 million tons of steel per year. However, Indonesia's steel industry can only supply about 30 percent of this demand, the remainder being imported.

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A total of 62 "big taxpayers" have joined Indonesia's tax amnesty program. According to local media their participation has resulted in a total of IDR 41.2 trillion (approx. USD $3.1 billion) worth of fund declarations and IDR 902 billion (approx. USD $68 million) in additional state revenue (tax). Meanwhile, the Tax Directorate General said there are more big Indonesian taxpayers ready to join the program. The tax office has formed a special team that calls the country's large businessmen on a daily basis to remind them about the tax amnesty program and their tax obligations.

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Coal miners have become cheerful over the past two months as coal prices have surged sharply. Indonesia's thermal coal price (in Indonesian: Harga Batubara Acuan, abbreviated HBA), a monthly price set by Indonesia's Energy and Mineral Resource Ministry and which is based on domestic and global coal prices, soared 9.5 percent (m/m) to USD $63.93 metric tons in September 2016, touching its highest level since April 2015. Moreover, in the preceding month the HBA had already surged by 10.1 percent (m/m). What explains this rise and is it sustainable?

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