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.

  • Remarkable News Indonesia: to Insult or Criticize the President?

    In the past couple of days Indonesian media touched upon the government’s proposal to revive a law that had been removed by Indonesia’s Constitutional Court in 2006. This law makes the act of insulting the Indonesian president an illegal act and can lead to prison sentences and fines. Criticism on the government’s proposal immediately emerged as several legislators and human rights activists fear that freedom of speech will be curtailed in the young democracy. Moreover, it can further erode public support for President Joko Widodo.

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  • Currency Update: Why Indonesia’s Rupiah Touches a 17-Year Low

    The Indonesian rupiah touched a 17-year low as the currency continued to depreciate amid persistent bullish US dollar momentum. The rupiah weakened to IDR 13,539 per US dollar according to the Bloomberg Dollar Index on Friday (31/07). The US Commerce Department announced on Thursday (30/07) that US gross domestic product (GDP) expanded at 2.3 percent (year-on-year) in the second quarter of 2015, giving rise to heightened expectation that the US Federal Reserve will raise its key interest rate soon.

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  • Corn Production & Consumption in Indonesia: Aiming for Self-Sufficiency

    Corn is among the four strategic commodities that receive special attention in the blueprint of the ASEAN Economic Community (AEC). The AEC’s food blueprint aims to enhance food security & sovereignty of corn, rice, soybeans and cassava in the ASEAN region. Indonesia is currently the region’s largest corn producer. However, Indonesian corn consumption continues to outpace domestic corn production, resulting in a deficit. This column provides an overview of Indonesia’s corn sector in the context of the AEC.

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  • Pharmaceutical Industry Indonesia: Plagued by Weak Rupiah

    Companies active in the pharmaceutical industry of Indonesia need to find strategies to overcome sharp rupiah depreciation. Indonesia’s pharmaceutical industry is still - to a large extent - dependent on the import of raw materials, hence a weakening rupiah raises the costs of imports thus eroding profit margins. Since May 2013, when the US Federal Reserve started to hint at monetary tightening, the US dollar has experienced bullish momentum. Between the May 2013 and July 2015, the rupiah depreciated around 37 percent against the US dollar.

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