• OJK Sets New Rules in Indonesia’s Islamic Financial Services Industry

    In a bid to enhance monitoring on Indonesia’s financial services sector, to deepen financial markets, and to widen people’s access to financial services, the Financial Services Authority (OJK) has introduced 20 new rules ranging from corporate governance to microfinance. The institution also revised Islamic banking rules involving asset quality and capital adequacy in an effort to increase the role of Islamic banking (sharia banking) in Indonesia’s financial system. Authorities target that Islamic banks hold more than 15 percent of the market by 2023.

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  • Berapa Upah Minimum di Indonesia di Tahun 2015?

    Total 29 provinsi Indonesia telah mengkonfirmasi upah minimum regional baru untuk tahun 2015. Secara keseluruhan (mengecualikan empat provinsi yang tersisa), rata-rata upah minimum Indonesia naik 12,77% pada basis year-on-year (y/y) di tahun 2015. Meskipun kenaikan ini cukup signifikan, kenaikan ini lebih kecil dibandingkan kenaikan upah minimum Indonesia di tahun 2014 (19,10% y/y). Kenaikan upah minimum terbesar terjadi di Provinsi Bangka Belitung (28%), sementara kenaikan upah terendah terjadi di Riau (0,58%).

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  • Moody’s & JP Morgan Positive about Indonesia’s Fuel Price Hike

    International credit rating agency Moody's Investors Service is positive about the subsidized fuel price hike that was conducted by the government of Indonesia on Monday (17/11) as it shows commitment of the government to implement reforms that support the strengthening of the economy, such as curbing Indonesia’s fiscal and current account deficits. Moody’s estimates that these developments are positive for the country’s sovereign rating (now at Baa3/stable) as well as for state-owned energy firm Pertamina (Baa3/stable).

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  • News Stories Indonesia: Reactions to the Subsidized Fuel Price Hike

    Main news headlines in Indonesia still cover the higher subsidized fuel prices implemented starting from the early hours of Tuesday (18/11). The previous evening, Indonesian President Joko Widodo had announced that prices of subsidized gasoline and diesel were to be raised by over 30 percent, immediately leading to long queues at local gas stations as well as public outcry as people’s purchasing power will diminish. Analysts and economists, however, agree that this move is correct and can lead to structurally higher GDP growth.

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