The twenty-first APEC Economic Leaders Meeting, chaired by Indonesia's president Bambang Susilo Yudhoyono, has been concluded and in the words of the president the Summit "went on successfully and was indeed very productive." During the two-day Summit the central theme of APEC 2013: “Resilient Asia-Pacific, Engine of Global Growth” was discussed thoroughly and a number of strategic points were agreed upon. Seven of these points are highlighted in the APEC joint statement‏, delivered by Yudhoyono on Tuesday (08/10).

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The APEC Business Advisory Council (ABAC), a permanent high-level business advisory group that is created by the Asia Pacific Economic Cooperation (APEC), has given five recommendations to the 21 member countries of the APEC. These recommendations involve regional economic integration, sustainable development, entrepreneurship as well as small and medium enterprises (SMEs), an economic and banking forum, and lastly, a dialogue in the industry sector concerning scientific innovation.

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Kawasan Industri Jababeka is an Indonesian industrial estate developer that also has stakes in the country's power generation and infrastructure sectors. Between 70 and 80 percent of the company's total sales are derived from its real estate sales. Currently, the company owns strategic land banks on three locations in Indonesia (all on the island of Java): Kota Jababeka, Cilegon Industrial Park, and Tanjung Lesung. Kawasan Industri Jababeka was the first publicly listed industrial estate developer in Indonesia.

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The realization of infrastructure projects through the Indonesian government's public-private partnership (PPP) scheme is yet to bear fruit. Up to this day, PPP infrastructure projects in Indonesia are still constrained by the difficulty of land acquisition, regulatory uncertainties and lack of funding. These investments projects are not among the most popular investment projects of private investors because they usually involve expensive (and risky) investments as well as patience while waiting for return of investment.

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About one week ahead of the APEC Economic Leaders' Week in Bali, Indonesia's President Susilo Bambang Yudhoyono inaugurated the 12.7-kilometer long toll road in Bali on Monday (23/09). The toll road, which runs almost entirely on viaducts above the sea, consists of a north-south route from the city of Denpasar to Nusa Dua, as well as a branch to the Denpasar airport (Ngurah Rai International Airport) and a connection to the port of Benoa. Operator of the Bali toll road is Jasamarga Bali Toll, a consortium of state-controlled companies.

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With the development of a production hub for low cost green cars (LCGCs), Indonesia hopes to become the leading car producer within the group of ASEAN nations. Total car sales in ASEAN in 2012 surpassed the three million cars mark. The two largest contributors to these sales were Thailand (1.3 million sold cars) and Indonesia (1.1 million). Currently, Thailand is still the largest car production hub in the ASEAN region, both in terms of production rate and domestic sales (despite having only 60 million citizens to Indonesia's 240 million).

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Indonesia's Ministry of Transportation has issued a temporary moratorium on the issuance of permits for the establishment of new airlines in Indonesia. A spokesman of the Ministry said that airports will become too crowded if more applications are approved. Overcrowded airports will result in more flight delays and entails risks for safety. An increase in flight frequency of already established airlines is still permitted. The Ministry is also concerned that if more permits are issued, current rife competition between airlines will intensify.

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Indonesia's Ngurah Rai Airport on the idyllic island of Bali is now the country's largest airport in terms of passenger capacity. Being newly renovated, it can handle 25 million passengers per year. As such, it has surpassed Soekarno-Hatta International Airport, located just outside Jakarta (Java), and the new Kuala Namu airport in Medan (Sumatra), which have passenger capacities of 22 million and 8.1 million respectively. However, after renovation of terminal three at Soekarno-Hatta will be finished, Ngurah Rai is to lose its top spot again.

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Jasa Marga is a state-controlled toll road operator that constructs and provides toll road services in Indonesia. Approximately 73 percent of total toll roads in Indonesia are operated by Jasa Marga, which makes this company the dominant player in Indonesia's toll road sector. Up to the end of 2012, the company has 22 toll road concessions - with a total length of 545 kilometer - in operation and 193 kilometer of toll road that is expected to become operational between 2013 and 2016.

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The total value of investments in the Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) between 2011 - when the Masterplan was first introduced - and July 2013 amounted to IDR 647.46 trillion (USD $58.86 billion). Coordinating Economic Minister Hatta Rajasa said this to state-owned news agency Antara. State-owned enterprises invested a total of IDR 173.63 trillion, followed by the private sector with IDR 231.88 trillion, the government with IDR 99 trillion and public-private partnerships with IDR 143.12 trillion.

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It has been more than a week since the Indonesian government raised its subsidized fuel prices (Pertalite, Pertamax, and automotive diesel fuel) by an average of slightly over 26 percent. One of the most interesting things is to see whether this decision leads to overall growing prices in Indonesian society. After all, fuel is crucial for the movement of goods and services, and has a significant impact on logistics costs.

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When writing this introduction, the 2021 United Nations Climate Change Conference (also known as COP26) had just started in Glasgow (Scotland). Indonesian President Joko Widodo is among the delegates who is slated to speech about the importance of preventing – and adapting to – climate change, and to seek ways to obtain climate financing as Indonesia is unable to finance the huge and costly energy transition by itself.

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On 30 September 2021 Indonesia’s House of Representatives (Dewan Perwakilan Rakyat, DPR) approved the 2022 State Budget (Anggaran Pendapatan dan Belanja Negara, APBN) that had previously been proposed by the cabinet. And with 14.2 percent of total government spending being reserved for infrastructure development in the 2022 State Budget, the Indonesian government confirms that it remains committed to much-needed infrastructure development.

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Sovereign wealth funds (SWFs) have existed for many decades around the world. By establishing a SWF – and inject capital into the SWF – governments can strengthen their national economies and generate wealth for future generations. In fact, a SWF is essentially a state-owned investment fund typically funded using excess capital.

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As regards Indonesia’s investment and business environment, there were a couple of interesting developments in February 2021. These were developments that – in our opinion – help to strengthen the economy of Indonesia in a fundamental way, albeit it will take a few years (as well as the assistance of other reforms) to fully enjoy the fruits of this labor.

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On 28 August 2020 Indonesian President Joko Widodo officially opened Yogyakarta International Airport (YIA), a brand new airport that is located in Kulon Progo in the Special Region of Yogyakarta; a region known as one of Indonesia’s main tourism centers. Many in fact call Yogyakarta the ‘heart and soul of Indonesia’.

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Those who have visited Indonesia should be well aware of the lack of infrastructure development across the country. Those who have been in urban centers (such as the capital city of Jakarta, Bandung or Surabaya) must have had the experience of being stuck in traffic as the number of road users (mostly cars and motorcycles) outpaces available road surface.

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Across the world, concern over the COVID-19 pandemic grew in September 2020 as the number of new COVID-19 cases continued to rise rapidly. Worldwide, at the end of September 2020, some 34 million people have been infected with the virus, while more than one million people have died after contracting the virus.

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One characteristic of the Indonesian economy is that the state-owned enterprises (SOEs) play an important role in this USD $1.0 trillion economy. They not only play an important role because some of them rank among Indonesia’s biggest companies (in terms of profit, sales and assets), thereby generating plenty of money for the government (in the form of tax revenue or dividend) while at the same time creating jobs for millions of Indonesians.

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On 25 September 2019, only a few days before Indonesia’s House of Representatives (in Indonesian: Dewan Perwakilan Rakyat, or DPR) finished its 2014-2019 term, it approved the 2020 State Budget bill (UU APBN 2020).

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