• Bank Indonesia Comments on Slowing Economic Growth in Q2-2014

    Indonesia’s gross domestic product (GDP) growth in the second quarter of 2014 slowed to 5.12 percent (year-on-year, yoy), thus decelerating compared to the nation’s GDP growth in the previous quarter (5.22 percent yoy). The Q2-2014 GDP growth result was lower than the figure that was projected by the central bank of Indonesia (Bank Indonesia). The institution previously stated that it expected Q2-014 economic growth to reach 5.3 percent (yoy). Below are some comment of Bank Indonesia on economic growth in the second quarter.

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  • Indonesian Rupiah Declines on US Data, Domestic Data & Ukraine Tensions

    Amid falling stocks and government bonds, the Indonesian rupiah exchange rate depreciated 0.45% to IDR 11,751 per US dollar according to the Bloomberg Dollar Index on Wednesday (06/08). This weak performance is caused by recent solid economic data from the USA, while tensions in the Ukraine are increasing (causing investors to prefer to invest in safe havens) after Russian President Vladimir Putin ordered a response to sanctions. Meanwhile, the euro lost ground to the US dollar after Germany posted unexpected declining factory orders.

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  • Profile of an Indonesian Agribusiness Player: PP London Sumatra Indonesia

    Indonesia Investments has updated the company profile of plantation firm PP London Sumatra Indonesia (or Lonsum). This Indonesian plantation company, controlled by the Salim Group, focuses on the production of palm oil, rubber, tea and cocoa on its estates on Sumatra, Java, Kalimantan and Sulawesi (covering more than 110,000 hectares in total). Although the global palm oil seed and rubber trade is expected to remain sluggish in 2014, increased sales (and global price) of crude palm oil (CPO) will impact positively on the company’s financial results.

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  • Indonesia Presidential Election Case: Prabowo Subianto’s Legal Challenge

    Today (06/08), the first session of defeated presidential candidate Prabowo Subianto’s legal challenge started. Based on data from the General Elections Commission (KPU), Indonesia’s July 2014 presidential election was won by Joko Widodo (Jokowi) with 53.15 percent to 46.85 percent of the votes. However, Subianto claims that the KPU’s outcome was influenced by fraud and other violations, leading to 50 million troubled votes in more than 200,000 Indonesian polling stations, and therefore challenges the result at the Constitutional Court.

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