• Jusuf Kalla: Indonesia’s Subsidized Fuel Prices to Rise in November

    Jusuf Kalla, Vice President of Indonesia, confirmed that subsidized fuel prices will be raised this month. Although Kalla declined to announce the specific amount, analysts expect a sharp increase of between IDR 2,000 and 3,000 (roughly USD $0.21) per liter - a price hike of almost 50 percent - to prices of both gasoline and diesel. Currently, the price of premium gasoline is IDR 6,500 (USD $0.54) per liter and diesel IDR 5,500 (USD $0.46). Economists have long requested for higher subsidized fuel prices in Indonesia as these distort the economy.

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  • Joko Widodo: Construction Sunda Strait Bridge is No Priority

    The administration of Indonesian President Joko Widodo (popularly known as Jokowi) will not give priority status to the Sunda Strait Bridge project. As such, the new government’s stance is in direct contrast to the previous administration’s stance toward the ambitious infrastructure project. The Sunda Strait Bridge, a planned road and railway connection between the two (westernmost) Indonesian islands of Sumatra and Java, was placed high on the agenda of the government led by Susilo Bambang Yudhoyono.

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  • Economy of Indonesia: Inflation, Trade Balance & Manufacturing

    On Monday (03/11), several important macroeconomic data were released by statistics Indonesia. Firstly, inflation was relatively high in October at 0.47 percent month-on-month (m/m). Secondly, Indonesia posted another trade deficit in September (USD $270 million). Thirdly, Indonesia's October manufacturing activity showed a contraction (the country’s manufacturing Purchasing Manages' Index fell to a 14-month low of 49.2 in October). Lastly, a total of 791,300 foreign tourists visited Indonesia in September.

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  • Indonesian Palm Oil Companies Post Good Results in 9M-2014

    Indonesian crude palm oil (CPO) producers have released good corporate earnings over the first nine months of 2014. Below, we have presented an overview of those CPO producers, listed on the Indonesia Stock Exchange, that have already released their financial results. Combined, these eleven companies recorded net profit growth of 155.3 percent year-on-year (y/y). The main reason for this improved performance was the 24 percent (average) increase in global CPO prices as the commodity gained popularity as an energy source.

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