• Chairul Tanjung Expects Deflation in May 2014 due to Stable Food Prices

    Indonesian newly installed Coordinating Minister for Economic Affairs Chairul Tanjung expects deflation in May 2014 due to stable prices of the main agricultural and food commodities. After Tanjung was appointed to replace Hatta Rajasa, who resigned from his post to focus on his vice-presidential bid in the July presidential election, Tanjung announced that he will prioritize policies that foster stable food prices as well as fiscal stability. In April 2014, Indonesia recorded deflation of 0.02 percent (month-to-month).

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  • Rubber Output in Indonesia May Fall 3% if the New El Nino Cycle Kicks in

    Ahead of the World Rubber Summit 2014 (held between 19 and 21 May in Singapore), Asril Sutan Amir, adviser to the Indonesian Rubber Association (GAPKINDO), said that Indonesian rubber output may decline by three percent or 100,000 metric tons (Mt) to 3 million Mt in 2014 due to the impact of this year's possible new El Nino cycle. An extended dry season will lead to damaged rubber trees and thus less production. Indonesia is currently the world's second-largest rubber producer after Thailand.

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  • Why Indonesian Stocks and the Rupiah Continue to Decline on Tuesday?

    One day after the official announcement that two pairs will compete in the presidential election (9 July 2014), the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) and the Indonesian rupiah exchange rate are still in a state of decline. Although yesterday (19/05) the rupiah and IHSG strengthened considerably prior and shortly after Joko "Jokowi" Widodo declared that Jusuf Kalla would be his running mate (the vice-presidential candidate) in the election, markets have been selling Indonesian assets since Monday afternoon.

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  • General Electric Eyes Establishment of a Regional Hub in Indonesia

    US multinational conglomerate General Electric (GE) is exploring possibilities to establish a regional business hub in Indonesia due to the promising perspectives of both Indonesia and other countries in Southeast Asia. Currently, Indonesia is the largest market for GE in Southeast Asia, accounting for roughly 30 percent of the company's revenue in this region (but Indonesia's regional peers are developing rapidly as well). However, GE Indonesia CEO Handry Satriago said that human resources form a problem.

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