Today's Headlines in Indonesia

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 Electricity Subsidy is Expected to Swell in 2016

    Indonesia's electricity subsidies may exceed the IDR 38.39 trillion (approx. USD $2.8 billion) allocated in the 2016 State Budget as there are probably more customers entitled to electricity subsidy than previously estimated. Last month, the Indonesian government and House of Representatives (DPR) agreed on cutting electricity subsidies for 450 VA and 900 VA households, per 1 January 2016, by disconnecting those people that are currently enjoying cheap electricity rates while they are not classified as 'poor' or 'near-poor' and thus do not deserve the subsidized price.

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  • Worldwide Stock Plunge; What Are the Factors at Play?

    Across the world, stock indices plunged on persistent concern about lower commodity prices (especially as crude oil dived to a two-month low and may start to flirt with the USD $40 per barrel level again), concern about slowing credit growth in China, while markets are also bracing for a possible US interest rate hike in December (a move that will particularly trigger capital outflows from riskier emerging market assets). This month markets are under severe selling pressure after experiencing a rally in October.

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  • Bank Indonesia: Current Account Deficit Improved to 1.86% of GDP in Q3-2015

    The current account balance of Indonesia improved due to the stronger non-oil & gas trade balance. Indonesia's current account deficit eased to USD $4.0 billion, or 1.86 percent of the country's gross domestic product (GDP), in the third quarter of 2015. This performance was much better than the USD $7.0 billion deficit (3.02 percent of GDP) recorded in Q3-2014 or USD $4.2 billion (1.95 percent of GDP) in Q2-2015. Meanwhile, the balance of payments showed a deficit of USD $4.6 billion, up from the deficit of USD $2.93 billion in the preceding quarter.

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  • Asian Stocks in the Red, Indonesia Bucking the Trend

    Asian shares are facing pressures on Friday (13/11) due to lower oil prices and increasing expectation that the US Federal Reserve will raise its key Fed Fund Rate by 25 basis points in December. Resource stocks are dragging down stock indices in Australia, Hong Kong and China by more than one percent. Indonesia's benchmark Jakarta Composite Index, however, is bucking the trend in Asia, having risen 0.51 percent to 4,485.12 points by 10:20 am local Jakarta time amid red indices in Asia. Meanwhile, the US dollar is strengthening against Asian currencies but not as sharply as initially predicted.

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