• Indonesia & ASEAN Economic Community: Free Flow of Skilled Labor

    With the implementation of the ASEAN Economic Community (AEC) per 1 January 2016 - i.e. the community that is designed to allow the free flow of goods, services, investment, and skilled labor as well as the freer flow of capital among its ten member countries - there has been concern among part of the Indonesian population whether there could occur a massive inflow of foreign workers into Indonesia hence giving rise to more competition on the domestic labor market. This column zooms in on the free flow of labor under the AEC.

    Lanjut baca ›

  • Stock Market & Rupiah Update Indonesia: Bad Day at the Office

    Again Asian stock markets went into deep red territory. Japan officially entered a bear market (the Nikkei 225 Index plunged 3.71 percent today), Singapore's benchmark Straits Times Index hit a more than four-year low after declining nearly 3 percent, while Philippine stocks dropped to a near-oversold level after falling 1.53 percent. At first Indonesia's benchmark Jakarta Composite Index managed to limit losses. However, towards the end of Wednesday's trading day pressure became too much, hence dropping 1.42 percent.

    Lanjut baca ›

  • Plastic Industry Indonesia: Exports Declined in 2015

    Indonesia's exports of plastics and plastic products fell 18.5 percent year-on-year (y/y) in 2015 to USD $2.25 billion from USD $2.76 billion in the preceding year. This decline was caused by weak global demand for plastic, falling selling prices and the low competitiveness of Indonesia's plastics and plastic products. Also in terms of volume Indonesia's plastic exports declined. Based on the latest data from Indonesia's Trade Ministry, the nation's plastics export volume fell 5.58 percent (y/y) to 1.39 million tons last year.

    Lanjut baca ›

  • Low Crude Oil Prices Threaten Indonesia's Biodiesel Program

    Persistent weak crude oil prices jeopardize smoothness of Indonesia's biodiesel program as cheap oil - currently trading below USD $30 per barrel - reduces demand for biodiesel and makes the biodiesel industry less economic viable. This year the government of Indonesia plans to launch the B20 biodiesel program (one notch up from the existing B15 program), referring to the requirement to blend a mandatory 20 percent of fatty acid methyl ester (FAME, derived from palm oil) with 80 percent of diesel.

    Lanjut baca ›