• Indonesia Stock Market & Rupiah: Brexit Looms, Financial Markets in Shock

    As voting results are being collected chances are growing that the United Kingdom will leave the European Union (the so-called "Brexit"). After results from 314 of a total of 382 UK voting districts have been collected, the leave camp leads by 3.8 percent. As a result the pound sterling is on track for its largest-ever one-day fall. Meanwhile, stock markets in Asia show deep losses, led by Japan's Nikkei 225 index and Hong Kong's Hang Seng Index (both tumbling more than three percent).

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  • Referendum: UK to Leave EU? What Is the Impact of 'Brexit' on Indonesia?

    Today (23/06), some 46.5 million UK voters are expected to show up for a massive decision. Since UK Prime Minister David Cameron announced that he will respect the outcome of the referendum, the decision whether the United Kingdom will leave the European Union is in the hands of the UK voters. The latest polls still indicate that the outcome of the referendum is too close to call. The first reliable preliminary reports about the outcome of the referendum are expected to be published on Friday morning around 05:00 am local UK time, or 11:00 am local Jakarta time. 

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  • Indonesia Relaxing LTV; Demand for House Ownership Credit (KPR) to Grow?

    By relaxing the loan-to-value (LTV) ratio, the central bank of Indonesia (Bank Indonesia) expects to see House Ownership Credit (Kredit Pemilikan Rumah, abbreviated KPR) growth to accelerate by an additional 5 percent. Up to April 2016, KPR growth was recorded at 7.61 percent (y/y) only, down significantly from the years 2012-2013 when - amid the glory years of property development in Indonesia - KPR growth touched figures of between 30 - 49 percent (y/y). Back then concerns emerged whether Indonesia was about to experience a price bubble in the property sector.

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  • What Are Indonesia's Priority Infrastructure Projects in 2016-2019?

    There are 30 projects that have been selected as priority infrastructure projects in Indonesia for the period 2016-2019. In total, all these projects together will require some IDR 5,519 trillion (approx. US $415 billion) worth of investment. However, the Indonesian government (including state-owned enterprises and regional governments) can only come up with IDR 1,400 trillion, or 26 percent of the required funds. The remainder therefore needs to be covered by the private sector. As such, the key for success is fruitful cooperation between the private and public sector (for example through public-private partnerships).

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