• Diplomatic Relations Indonesia & China: Another Illegal Fishing Incident

    Diplomatic relations between Indonesia and China face another challenge as reports suggest that the Indonesian navy fired at an illegal Chinese fishing boat near the Natuna Islands in the South China Sea on Saturday (18/06). According to Chinese sources the incident injured one Chinese fisherman, while Indonesian sources claim there had been no injuries. The waters in the South China Sea are claimed by China, while Indonesia considers these waters part of its exclusive economic zone.

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  • Bank Indonesia Cuts Key Interest Rate (BI Rate) to 6.50% in June

    The central bank of Indonesia (Bank Indonesia) cut its key interest rate (BI rate) by 0.25 percentage point to 6.50 percent at Thursday's policy meeting (16/06). Although the central bank had stated at its preceding policy meeting that there remained room for monetary easing, today's move was a surprise that few analysts saw coming. The 7-day reverse repurchase rate, which is set to become the central bank's new benchmark rate on 19 August, was also cut by 25 basis points (to 5.25 percent) at today's policy meeting.

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  • Indonesia Raises 100 Billion Yen from Samurai Bonds

    After last week's successful issuance of euro-denominated bonds, the government of Indonesia has now conducted a successful issuance of yen-denominated bonds (known as samurai bonds). Indonesia's Finance Ministry said it raised 100 billion yen (approx. USD $942 million) on Wednesday (15/06) from a private placement of samurai bonds to institutional investors in Japan. Lead underwriters of the bond issuance were Mitsubishi UFJ Morgan Stanley Securities Co Ltd, Mizuho Securities Co Ltd, and SMBC Nikko Securities Inc.

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  • Why Indonesia Doesn't Ratify WHO's Framework Convention on Tobacco Control

    Indonesia is one of the few nations around the globe that is yet to ratify the World Health Organization (WHO)’s Framework Convention on Tobacco Control (FCTC). The FCTC mandates strict limits on tobacco advertising, sponsorship, production, sale, distribution and taxation in order to protect people from the negative health, social, environmental and economic consequences of cigarette consumption or exposure to cigarette smoke. However, it will be a cold day in hell before Indonesia ratifies the FCTC.

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