The Today's Headlines section of Indonesia Investments is a regularly updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
Indonesia's third-largest cinema operator CGV Cinemas, owned by publicly listed Graha Layar Prima, needs to replace the comfortable (bed-like) seats in the velvet class of its Palembang movie theater (in the capital of Indonesia's South Sumatra province) because local authorities decided (after receiving complaints from local citizens) that the bed-like seats may encourage adultery and sexual misconduct.
Growth of advertising spending in Indonesia's printed and electronic media grew 14 percent year-on-year (y/y) to IDR 134.8 trillion (approx. USD $10.1 billion) in 2016 from IDR 118 trillion in the preceding year. This growth pace is nearly double the annual growth pace that was recorded in 2014 and 2015 at 8 percent and 7 percent, respectively. These data come from a new report released by Nielsen’s Advertising Information Service earlier this week.
The Indonesian Palm Oil Producers Association (Gapki) announced that Indonesia's palm oil production realization reached 34.5 million tons in 2016, down 3 percent from a production figure of 35.5 million tons in the preceding year. The reason why Indonesia's palm oil output fell in 2016 was the El Nino weather phenomenon that brought dry weather to Southeast Asia. The unconducive weather conditions plagued harvests in the region, although the 3 percent decline was much softer than earlier predictions. Earlier, several analysts predicted a 15-30 percent (y/y) decline of palm oil output in Indonesia in 2016.
UBS Investment Bank is less positive about Indonesia's economic growth in 2017 compared to most other institutions. The global financial services company, with its headquarters in Switzerland, expects to see the Indonesian economy growing by 4.8 percent year-on-year (y/y) in 2017. Edward Teather, Senior Economist for ASEAN and India at UBS, says the year 2017 is a year of adjustment and balancing for Southeast Asia's largest economy, while the role of fiscal support toward GDP growth is also seen declining this year. He added that 2018 will be the year in which Indonesia should see strongly accelerating economic growth.
