• Aviation Industry Indonesia: Air Passenger Traffic Growth is Slowing

    The number of air passengers in Indonesia will most likely fail to meet its growth target in 2014. Based on government data, the number of air passengers in Southeast Asia’s largest economy reached 47.5 million in the first eight months of 2014, a 5.82 percentage point growth from the same period last year. However, the Indonesia National Air Carrier Association (INACA) initially targeted annual passenger growth in the range of 12-15 percent for 2014. Amid slowing economic growth, people’s purchasing power has declined.

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  • Global Concern: Economy of China Slows to 7.3% in Q3-2014

    Economic expansion of China slowed to a growth pace of 7.3 percent year-on-year (y/y) in the third quarter of 2014, the slowest pace in five years. Although China’s Q3-2014 GDP growth result was better than most analysts’ projections of 7.2 percent, Chinese policy makers will face difficulties to achieve its 7.5 percent annual growth target for full-year 2014. Being one of the most important trading partners of Indonesia, slowing economic growth of China has a major impact on the export performance of Indonesia.

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  • What are the Economic Challenges Faced by President Joko Widodo?

    Today (20/10), Central Jakarta seems to have changed into one big party as Joko Widodo was inaugurated as Indonesia’s seventh president earlier this morning. For the remainder of the day celebrations will be held at Monas (National Monument) and surrounding areas. However, it is of vital importance that Widodo (popularly known as Jokowi) will start to focus on this presidential duties tomorrow as the country is facing a number of economic challenges. What are these challenges?

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  • Agriculture in Indonesia: Update on Rice and Coffee Production

    Indonesia’s Agriculture Ministry estimates that Indonesia’s rice harvest will not be severely affected by the El Niño weather phenomenon this year. The Ministry expects to see a rice production of at least 70 million tons of unmilled rice in 2014, just 1.9 percent down from the 71.3 million tons of rice that was produced last year. Meanwhile, Indonesia may see a record coffee harvest in 2015 as recent rainfall in the important coffee-producing regions have supported the development of cherries.

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