• Commodities: Rubber Production Indonesia Expected to Rise in 2016

    The Indonesian Rubber Board says Indonesia's rubber production is expected to reach 3.16 million tons in 2016, up 1.61 percent (y/y) from last year's realization. The board said rising output comes on the back of an increase in the size of Indonesia's rubber plantations and an increase in productivity at the existing plantations. Indonesia is the world's second-largest rubber producer (after Thailand) and therefore its output has a major impact on global rubber prices (about 85 percent of Indonesia's rubber production is exported abroad).

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  • 12th Economic Policy Package Indonesia: Ease of Doing Business

    The Indonesian government released the 12th economic policy package on Thursday (28/04). This latest edition focuses on enhancing the ease of doing business for the small and mid-sized companies in Indonesia in a bid to attract more investment, hence giving a boost to economic growth. In the 12th package the government announces it has cut a number of procedures and permits, as well as costs, required for the development of a business. Indonesia's Chief Economics Minister Darmin Nasution unveiled the package on Thursday in Jakarta's Presidential Palace.

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  • Corporate Debt Concerns Moody's but Indonesia's Rating Kept at Baa3/Stable

    Global credit rating agency Moody's Investors Service released a report that includes a warning about the current state of Indonesia's corporate debt. Although Moody's is concerned about the relatively high reliance of Indonesian companies on foreign sources for their debt, the credit rating agency kept Indonesia's sovereign rating at Baa3 with a stable outlook. Moody's noted that Indonesia's government and corporate debt stands at 26.8 percent and 23.7 percent of the nation's gross domestic product (GDP), respectively.

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  • Commodities: Indonesia's Palm Oil Export Tax Back in May 2016

    For the first time since October 2014, Indonesia's palm oil exporters will have to pay an export tax on crude palm oil (CPO) shipments as the government's reference CPO price was set at USD $754.10 per ton in May (the level of USD $750 per ton separates taxable from non-taxable shipments). The Indonesian government announced that it will impose a USD $3 per ton tax on CPO exports in May 2016. Palm oil is the key foreign exchange earner for Indonesia in terms of non-mining export products. The country is the world's largest producer and exporter of CPO, followed by Malaysia.

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