• Why Does Indonesia’s Rupiah Have a Weak Start in 2015?

    The Indonesian rupiah exchange rate is experiencing a weak start of the New Year. According to the Bloomberg Dollar Index, Indonesia’s currency had depreciated 1.26 percent to IDR 12,543 per US dollar by 13:35 pm local Jakarta time on Friday (02/01). However, this weak performance is in line with the performance of other emerging Asian currencies against the US dollar on today’s trading day (amid an improving US economy), thus extending the depreciating trend that started in the second half of 2014.

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  • Indofood Sukses Makmur to Sell 52.9% Stake in China Minzhong Food

    Indofood Sukses Makmur (INDF), Indonesia's largest food processing company and - reportedly - the world's largest producer of instant noodles, plans to sell a 52.94 percent stake in China Minzhong Food Corporation Limited (CMFC), a Singapore-listed Chinese integrated vegetable processing firm. Indofood will sell 347 million shares at a price of Sin$ 1.2 per share, hence the sale will have a total value of Sin$ 416.4 million (IDR 3.9 trillion, or USD $313 million). A potential buyer is China Minzhong Holdings Ltd.

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  • Reforming the Subsidized Fuel Price Policy of Indonesia

    The Indonesian government has further reformed its decade-old fuel subsidy policy in a move to streamline - and make more structural use of - public spending. The latest change is effective from today (1 January 2015) and thus Indonesia moved a step closer to applying a market-based price mechanism. The government now uses a fixed diesel subsidy of IDR 1,000 (USD $0.08) per liter, while subsidy for low-octane gasoline is scrapped altogether (however the government will account for gasoline distribution costs outside Java, Madura and Bali).

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  • AirAsia Indonesia Flight QZ8501 Surabaya-Singapore Goes Missing

    On Sunday 28 December 2014 an Indonesia AirAsia flight lost contact with Indonesian air traffic control en route from Surabaya (East Java) to Singapore. AirAsia flight QZ 8501, carrying 155 passengers and seven crew members, departed from Surabaya at 5:35 am local Surabaya time and lost contact above the Java Sea (between Java and Kalimantan) at 6:17 am local time. The Airbus A320-200 was supposed to land in Singapore at 08:30 am Singapore time.

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