• Freeport Indonesia's Grasberg Contract Extension, Share Divestment & Investment

    Freeport Indonesia, the local unit of US-based energy and mining giant Freeport-McMoRan Inc, will be allowed by the Indonesian government to operate the Grasberg mine in Papua (the world’s largest gold mine and third-largest copper mine) beyond 2021 (when the existing contract expires). Sudirman Said, Indonesian Minister of Energy and Mineral Resources, told reporters that the central government has provided assurances to Freeport. However, it will require a regulatory amendment first before Freeport Indonesia can submit a proposal for extension.

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  • What are the Stimulus Measures in Indonesia's Third Economic Policy Package?

    The government of Indonesia unveiled the last installment of a series of three stimulus packages on Wednesday (07/10). The first two installments had been unveiled last month. In general, these stimulus packages aim to boost economic growth of Indonesia (which has slowed to a six-year low) and restore investors' confidence in the Indonesian rupiah and stocks. When markets believed that the Federal Reserve would soon raise its key interest rate, Indonesia was plagued by severe capital outflows pushing the rupiah to a 17-year low.

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  • International Monetary Fund Cuts Global Growth on Slowing Emerging Markets

    In the latest edition of its flagship publication, the World Economic Outlook (WEO), the International Monetary Fund (IMF) says it is concerned that sluggish global economic growth will persist in the foreseeable future particularly on the back of slowing growth in emerging markets (which account for the lion's share of global growth). The IMF's forecast for global growth in 2015 and 2016 was both cut by 0.2 percentage point to 3.1 percent (y/y) and 3.6 percent (y/y), respectively, from the July WEO Update. In 2014, the world economy grew 3.4 percent (y/y).

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  • Palm Oil Industry Update: Indonesia & Malaysia Cooperate in Council and Special Zone

    Indonesia and Malaysia, the world's leading crude palm oil (CPO) producers and exporters, will cooperate for the development of a special economic zone on Indonesian territory to boost the palm oil industry's downstream industry. Private companies will be given incentives to invest in this zone and develop industries to process CPO into olein, a key ingredient for the production of cosmetics and margarine. Furthermore, both countries plan to establish the Council of Palm Oil Producer Countries.

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