• New Minimum Wage Jakarta Set at IDR 2.4 Million ($213) per Month in 2014

    After two days of demonstrations by tens of thousands of Indonesian workers, the Governor of Jakarta (Joko Widodo) raised the capital's minimum wage to IDR 2.4 million (USD $213) per month. The new minimum wage, proposed by the Jakarta Wage Council, will be implemented in 2014 and constitutes a 10% increase from the current minimum wage of IDR 2.2 million. The workers, however, had demanded for a minimum wage of IDR 3.7 million causing various institutions and analysts to express concerns about the impact on the investment climate.

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  • Indonesia Records Trade Deficit of USD $657.2 Million in September 2013

    Indonesia's trade surplus in August 2013 was not continued into September. Today (01/11), Statistics Indonesia announced that the country experienced a trade deficit of USD $657.2 million in September 2013. Exports in September fell 6.85 percent year-on-year (yoy) to USD $14.81 billion, while imports rose 0.77 percent (yoy) to USD $15.47 billion. During January-September 2013, total exports amounted to USD $134.05 billion, while total imports amounted to USD $140.31 billion. This means that the current trade deficit stands at USD $6.26 billion.

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  • Lower Foodstuffs and Clothes Prices; Indonesia's October Inflation 0.09%

    Inflation in October 2013 was recorded at 0.09%. This low inflation rate was mainly supported by easing food and clothes prices. The foodstuffs component in the basket recorded deflation of 0.34 percent, while clothes posted deflation of 0.56 percent. These details were presented by Suryamin, Head of Statistics Indonesia (BPS) on Friday (01/11). The 0.09 percent October inflation rate is low compared to past results in the same month with the notable exception of October 2011 when 0.12 percent of deflation was recorded.

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  • Taxi Operator Blue Bird Expected to Conduct IPO in November 2013

    Blue Bird, the biggest taxi operator of Indonesia, aims to raise IDR 5 trillion (USD $450 million) through an initial public offering (IPO) on the Indonesia Stock Exchange, which is expected to be conducted in November 2013. This would make it the largest Indonesian IPO since food producer Indofood CBP Sukses Makmur raised USD $696 million in 2010. Blue Bird allegedly appointed Credit Suisse, UBS and Danareksa Sekuritas to act as underwriters. It has been speculated that the company will sell 20 to 40 percent of its stock equity.

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