• Indonesia's Preparations Start ASEAN Economic Community 78% Completed

    Economic Minister Hatta Rajasa said that Indonesia's preparations for the implementation of the ASEAN Economic Community (AEC) in late 2015 are currently for 78 percent completed. The AEC aims to enhance regional economic integration among the ASEAN member states. It will transform the ASEAN region into one with free movement of goods, services, investment, and skilled labour, as well as a freer flow of capital. Most important is to develop Indonesia's infrastructure in order to foster connectivity, thus reducing logistics costs.

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  • Gini Ratio of Indonesia May Improve in 2014 on Stable Commodity Prices

    The Gini ratio of Indonesia - the coefficient that measures inequality in income distribution - is expected to improve slightly this year as commodity prices have a stable outlook. Based on data from Statistics Indonesia, the ratio increased significantly since the country's Reformasi period. Between 1999 and 2013, it rose from 0.31 percent to 0.41 percent (a coefficient of zero expresses perfect equality, while one implies perfect inequality). In the last three years (2011- 2013), however, the ratio remained stable at 0.41 percent.

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  • World Bank: Optimizing Indonesia's Main Sea Port Tanjung Priok in Jakarta

    Inefficiencies at the Tanjung Priok port, Indonesia's main port (located in the heart of Jakarta) and which handles about two-thirds of the country's international trade, are a major cause for logistics costs in the domestic economy. Indonesia's logistics costs account for about 24 percent of GDP, thus significantly higher compared to its regional peers. The long dwell time at Tanjung Priok is one of the largest concerns, particularly as trade flows continue to grow. The average import container dwell time increased from 4.8 days in 2010 to 6.4 days in 2013.

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  • Indonesian Construction Companies Post Strong Growth in 2013

    Four publicly listed - yet state controlled - construction companies recorded a combined 42 percent growth (year on year) in net profit in 2013. The combined net profit of these four companies - Wijaya Karya (Wika), Adhi Karya, Pembangunan Perumahan (PP) and Waskita Karya - totaled IDR 1.74 trillion (USD $146.2 million) last year. These numbers evidence the robust growth that Indonesia's property and infrastructure sectors experienced in 2013 and is expected to continue in 2014.

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