• Only Telkom Posts Good Results in Indonesia's Telecommunication Sector

    In recent years, the telecommunication sector of Indonesia has been a tough arena for mobile phone operators. In terms of voice services, the once highly prospective industry has become more and more saturated over the years. Amid fierce competition tariffs for mobile phone services have been brought down significantly, while a new group of subscribers (from the poorer segments of society) have limited spending capacity. However, with the introduction of the increasingly popular smartphone, there is still room for growth.

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  • Bilateral Currency Swap Arrangement Central Banks Indonesia and Korea

    Yesterday (06/03), the central banks of Indonesia (Bank Indonesia) and the Korea established a bilateral local currency swap arrangement. The arrangement allows for the exchange of local currencies between the two central banks of up to KRW 10.7 trillion or IDR 115 trillion. The effective period of the facility will be three years, and could be extended by mutual consent of both sides. This arrangement is designed to promote bilateral trade and further strengthen financial cooperation for the economic development of the two countries.

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  • Bappenas: Indonesian Inflation Rate Can Be Kept Below 6% in 2014

    Minister of National Development Planning (Bappenas) Armida Alisjahbana is optimistic that Indonesia's inflation rate will stay below the six percent mark in 2014. After seeing inflation ease to 7.75 percent (year-on-year) in February (from 8.22 percent in January), Alisjahbana in fact believes that inflation can be kept below 5.5 percent (just within the target range of Bank Indonesia). Limited inflation is important in the context of poverty eradication. The country's poverty rate is targeted to ease to 10.5 by the year-end.

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  • Reducing Poverty Through Indonesia's National Medium Term Plan

    The government of Indonesia targets economic growth rates in the range of six to eight percent per year in the period 2015 to 2019. By the end of this period, the country's gross domestic product (GDP) per capita should reach around USD $7,000. According to Minister of National Development Planning (Bappenas) Armida Alisjahbana, if these targets are met then Indonesia can escape from the middle income trap by 2019. The middle income trap occurs when growth stagnates after reaching middle income levels.

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