News Columns about Indonesia

Indonesia Investments' News Columns section contains articles with a detailed analysis regarding topics that have high news value in Indonesia and can be regarded as topics that are capable of influencing Indonesia's investment climate. Most columns published in this section cover subjects related to politics, economics and social matters. By following these publications on a regular basis, one will be apprised of what is happening in Indonesia and - just as important - understand why it is happening.

  • Ford Motor Indonesia still Active in Indonesia until 2017

    About a week ago Ford Motor Indonesia, the local unit of American car manufacturer Ford Motor Company, announced it decided to exit Indonesia and Japan as the firm is unable to compete with its Japanese counterparts. The Ford dealers in Indonesia are still open, meaning consumers can still buy the existing stock of Ford cars. Ford buyers can also still count on after-sales services or the purchase of spare-parts. Next year, however, these stores will be shut. Ford is still studying how to continue services (including guarantee) after 2017 for those that bought a Ford vehicle.

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  • Palm Oil Industry Indonesia Update: Progressive Import Tax France

    The crude palm oil business received a blow when France announced it plans to impose progressive tax on imports of crude palm oil and its derivatives. French authorities approved a bill on 21 January 2016 that will raise the import tax on palm oil from around 100 euro per ton currently to 300 euro per ton in 2017. This tariff will then be raised to 700 euro per ton in 2019, and to 900 euro per ton in 2020. Through this tax hike France aims to discourage the palm oil industry, hence curtailing global deforestation as well as to protect its citizens from the negative health effects caused by the consumption of palm oil.

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  • Indonesia's Low Internet Penetration Rate Curbs Economic Growth

    While Indonesia is currently in the middle of expanding its 4G network, the nation remains placed among the countries that have the poorest Internet penetration rate in the world. A recent World Bank report, titled 'World Development Report 2016: Digital Dividends', zooms in on the economic and social impact that occurs when a relative large part of the population cannot be connected to the Internet or when the government fails to keep pace with the growth of technology.

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  • Rising Income Inequality in Indonesia: the Social Threat

    Although the government of Indonesia aims to lower the country's Gini coefficient to 39 in 2016, there continue to be more reports that see income inequality in Indonesia widening rather than declining. For example, a recent World Bank report notes that Indonesia's Gini coefficient rose from 30 in 2000 to 41 in 2015 (a reading of 0 represents perfect equality, while a reading of 100 represents perfect inequality). This rising trend will continue if the government fails to tackle this issue.

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