• Car Production Indonesia to Fall 15% to 1.1 Million in 2015

    Production of cars in Indonesia is expected to decline 15 percent (y/y) to an estimated 1.1 million vehicles in 2015, far below the target (1.6 million vehicles) set in the automotive industry roadmap desinged by the Indonesian Industry Ministry. This drop is due to the slowdown in car sales in Southeast Asia's largest economy. Slowing economic growth, which dragged down Indonesia's gross domestic product (GDP) growth to a six-year low, resulted in weakening purchasing power of Indonesian consumers.

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  • Mining in Indonesia: Newmont Nusa Tenggara to Resume Copper Concentrate Export

    Indonesia's Ministry of Energy and Mineral Resources issued an export recommendation letter for copper and gold miner Newmont Nusa Tenggara (NNT), meaning that the company can resume copper concentrate exports for another six-month period after the previous permit expired on 22 September. Bambang Gatot, Director General for Coal and Minerals at the Energy Ministry, said NNT has met all requirements - including those related to NNT's commitment to establish domestic smelting facilities - in order to obtain the export recommendation letter.

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  • Hotel Room Occupancy Rate Bogor to Fall on New Hotel Development

    The room occupancy rate for starred hotels in Bogor (West Java) is expected to decline further in 2016 as growth in demand for hotel rooms in Bogor is outpaced by growth in the hotel room supply. Bogor and the surrounding area (which includes mountain resorts) is a key cultural and tourist center in Indonesia. Located approximately 60 kilometers south of Indonesia's capital city of Jakarta, most demand (more than 90 percent) for Bogor hotel rooms comes from Jakarta.

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  • Indonesia to Issue Global Bonds, OJK to Boost Issuance of Corporate Bonds

    The government of Indonesia plans to issue (foreign currency-denominated) global bonds worth USD $10 billion to cover a shortfall in the 2016 State Budget. These global bonds would be part of a total of IDR 510 trillion (approx. USD $37 billion) worth of bonds that the government plans to sell in 2016. Scenaider Siahaan, Director of Borrowing Strategy at Indonesia's Finance Ministry, said about USD $4 billion of these global bonds are US dollar-denominated. For such bonds, the government usually appoints Bank of America Merrill Lynch, CIMB, Citigroup, and HSBC as book-runners.

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