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.
After the massive USD $2.29 billion trade deficit in April 2019 (which was the biggest monthly trade deficit in six years), Indonesia managed to turn the balance into a USD $206.7 million surplus in May 2019. Albeit small, Indonesian policymakers must have been relieved seeing the surplus as previously there were mixed opinions whether Indonesia would record a surplus or deficit in May.
In line with expectations, the central bank of Indonesia (Bank Indonesia) decided to leave its benchmark interest rate – the BI 7-Day Reverse Repo Rate – unchanged at 6.00 percent, while also maintaining its deposit facility and lending facility rates at 5.25 percent and 6.75 percent, respectively, at the two-day monthly monetary policy meeting that was held on 19 and 20 June 2019.
The Indonesian government has revised its luxury goods tax policy (in Indonesia known as PPnBM) for (luxury) property. Previously, apartments with a selling price of at least IDR 10 billion (approx. USD $700,000) and houses with a selling price of at least IDR 20 billion (approx. USD $1.4 million) were subject to a 20 percent luxury goods tax. The latest revision has now raised the minimum price of the property to IDR 30 billion (approx. USD $2.1 million) for all types of property.
An annual peak in urbanization in Indonesia is one of the most interesting consequences of the Lebaran period. Ahead of Lebaran - a national holiday when Indonesian Muslims celebrate the end of the Ramadan month - around 20 million Indonesians (most of whom reside in the urban centers of Java) travel back to their places of origin to spend a couple of days with their (extended) families. It is a tradition that is locally known as mudik.
