• Higher Gini Ratio Shows Indonesia's Widening Income Distribution Inequality

    The Indonesian government should take more action to reverse the country's widening income distribution inequality. Indonesia's Gini ratio, the coefficient that measures inequality among income distribution, has risen in 2013 according to economist Lana Soelistianingsih. The Gini coefficient rose from 0.37 in 2012 to 0.41 in 2013 (a coefficient of zero expresses perfect equality, while one implies maximal inequality). The growth not only shows that the Indonesian government fails to tackle this problem but also implies social risks.

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  • Indonesia's High Rainfall Can Lead to Inflationary Pressures in January

    Traditionally in the first month of the year, heavy rainfalls plague certain areas of Indonesia, particularly parts of Java, Kalimantan and Sumatra as the rainy season hits its peak. These weather conditions cause social problems as tens of thousands of people need to relocate as well as economic turmoil due to disrupted harvests and logistic trouble amid bad connectivity. Governor of Indonesia's central bank (Bank Indonesia), Agus Martowardojo, stated that the current weather conditions may result in higher inflationary pressures in January.

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  • Internet Penetration in Indonesia: Rising but Slower than Wanted

    The number of Indonesian Internet users grew 13 percent (year-on-year) to 71.2 million in 2013 according to data provided by the Association of Indonesian Internet Providers (APJII). Overall, Internet penetration in Indonesia now stands at around 28 percent of the country's total population of over 240 million people. The number of Internet users in Indonesia is expected to grow to 107 million in 2014 and 139 million in 2015 based on the Millennium Development Goals. However, the sector needs government support to achieve these numbers.

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  • Bank Panin Syariah First New Listed Company on Indonesia Stock Exchange

    On Wednesday (15/01), the first new listing of 2014 on the Indonesia Stock Exchange was conducted. Bank Panin Syariah, provider of Islamic banking services and subsidiary of Bank Panin, became a listed company (with listed company code PNBS). Through the initial public offering (IPO), the financial institution is looking for additional capital to meet the central bank's requirement to become a BUKU 2 type of bank (see explanation below). The company aims to reap IDR 475 billion (USD $39.6 million) through the release of 4.75 billion shares.

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