On Monday evening (09/06), the first debate between Indonesia’s two presidential candidates (joined by their running mates) was held and broadcast live on national television by various Indonesian television stations. This debate is the first in a series of five debates in which both teams - Joko ‘Jokowi’ Widodo and Jusuf Kalla vs Prabowo Subianto and Hatta Rajasa - are able to share their vision and mission to the Indonesian electorate. The debate immediately became a trending topic on social media.

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The Indonesian rupiah exchange rate has appreciated 0.50 percent to IDR 11,779 per US dollar by 16:00pm local Jakarta time on Monday (09/06). This performance is in line with the general trend in Asia where emerging market currencies strengthened against the greenback on today’s trading day. The rupiah is among today’s best-performing emerging currencies as it was boosted by the higher trade surplus of China (one of Indonesia’s most important trading partners) and economic growth in Japan.

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With the presidential election of Indonesia (scheduled for 9 July) becoming a battle between Governor of Jakarta Joko Widodo, popularly known as Jokowi, and former army general and Suharto crony Prabowo Subianto, it is worth taking a closer look into the ideas and policies that both candidates would like to implement if elected as the next Indonesian president, as well as their stance on specific economic issues. The viewpoints that are mentioned below are based on the documents that both parties provided to the General Election Commission.

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One day after the official announcement that two pairs will compete in the presidential election (9 July 2014), the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) and the Indonesian rupiah exchange rate are still in a state of decline. Although yesterday (19/05) the rupiah and IHSG strengthened considerably prior and shortly after Joko "Jokowi" Widodo declared that Jusuf Kalla would be his running mate (the vice-presidential candidate) in the election, markets have been selling Indonesian assets since Monday afternoon.

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In front of the Joang '45 Museum, which illustrates Indonesia's battle for independence, Joko "Jokowi" Widodo (Governor of Jakarta) officially declared that Jusuf Kalla is his running mate (or the vice-presidential candidate) in the upcoming presidential election (scheduled for 9 July 2014). It had been speculated for weeks that Jusuf Kalla (former Indonesian Vice-President, businessman and philanthropist), would be Jokowi's running mate but it was only officially declared just after noon (local Jakarta time) on Monday (19/05).

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Although we are still waiting for the official announcement (which is expected to follow shortly), more and more signs are pointing towards the nomination of Jusuf Kalla as the running mate (or vice-presidential candidate) of Jakarta Governor Joko "Jokowi" Widodo in the presidential election that is scheduled for 9 July 2014. The pair will have the full support of the PDI-P, NasDem, PKB and Hanura coalition. The chairmen of the NasDem (Surya Paloh) and PKB (Muhaimin Iskandar) have reportedly confirmed that Kalla will be the running mate.

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It is becoming more and more likely that the Golkar party (the second-largest political party of Indonesia based on the legislative election that was held in April 2014), will join the coalition that consists of the PDI-P (winner of the legislative election), NasDem and PKB. This coalition has already announced its full support for highly popular Governor of Jakarta Joko “Jokowi” Widodo as the coalition’s presidential nominee for the presidential election (9 July 2014). The running mate of Jokowi, however, remains a question mark.

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Both the Indonesian rupiah exchange rate and the country's benchmark stock index (known as the Jakarta Composite Index or IHSG) have strengthened significantly on Wednesday's trading day (14/05). The rupiah appreciated 0.76 percent to IDR 11,450 per US dollar by 15:00 local Jakarta time according to the Bloomberg Dollar Index. Meanwhile, the IHSG gained 1.09 percent to 4,975.13 by the same time. Main reason for this strong performance is the official declaration of the PDI-P to form a coalition with NasDem and PKB.

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Indonesian newspaper Investor Daily reported that on Friday 9 May 2014 Joko Widodo, the presidential candidate of the PDI-P (winner of the April 2014 legislative election), will announce his running mate for the presidential election. According to the newspaper, Surya Paloh - founder of the NasDem party - said that the running mate (vice-presidential candidate) has already been agreed upon although he declined to mention a name. The PDI-P and NasDem formed a coalition last month in order to nominate a presidential candidate.

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Although Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) fell immediately after its opening on Monday (28/04), the index is expected to strengthen this week as Joko 'Jokowi' Widodo will announce his running mate for the 2014 presidential election. Jokowi is the presidential nominee of the PDI-P party (the largest opposition party in the Indonesian parliament), which won the legislative election in April 2014 by securing about 19 percent of the popular vote.

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International credit rating agency Fitch Ratings maintained Indonesia’s sovereign rating at BBB-/stable outlook (investment grade). Baradita Katoppo, President Director of Indonesia’s Fitch Ratings branch, said that the firm is positive about the country’s financial fundamentals and prudent fiscal policy as the central bank has showed to prefer stability over growth, resulting in slowing credit growth and rising foreign exchange reserves in Southeast Asia’s largest economy. Economic growth is expected to fall to 5.1 percent (y/y) in 2014.

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Last week, Indonesian President Joko Widodo introduced higher subsidized fuel prices in Southeast Asia’s largest economy in a bid to shift generous public spending from fuel consumption to productive and structural economic and social development. Prices of subsidized low-octane gasoline (premium) and diesel (solar) were raised by over 30 percent, or IDR 2,000 (USD $0.17) per liter, starting from 00:00 on Tuesday (18/11). Widodo aims to reallocate these funds to infrastructure, social welfare and the maritime sector.

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Basuki Tjahaja Purnama (better known as Ahok) has been inaugurated as the 17th Governor of Jakarta by Indonesian President Joko Widodo on Wednesday (19/11) The position of Jakarta Governor was previously empty as former Governor Widodo stepped down from this position to focus on a (successful) presidential campaign. Although by law the Deputy Governor (Ahok) automatically becomes the new Governor, this has met fierce resistance from certain sides as Ahok is an ethnic Chinese Christian. This news article is the updated version of an article that was first published on 18 November 2014

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A total of 35 American companies are interested to invest a combined USD $61 billion in Indonesia over the next five years according to a survey conducted by the Paramadina Public Policy Institute, the American Chamber of Commerce in Indonesia (AmCham Indonesia), the Indonesian Employers Association (Apindo), and the Indonesian Chamber of Commerce and Industry (Kadin Indonesia). These 35 US companies have already invested a total of USD $65 billion in Indonesia over the period 2004 to 2012.

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Amid mostly gaining stock markets in Southeast Asia on Tuesday (11/11), the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rebounded sharply after several days of declines. Most Indonesian blue chip stocks rose considerably after having tumbled in recent days. Positive market sentiments were caused by Joko 'Jokowi' Widodo’s participation in the Asia Pacific Economic Cooperation (APEC) summit in Beijing as well as news that both camps in Indonesian parliament have agreed to work together.

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After Indonesian President Joko Widodo and Vice President Jusuf Kalla have confirmed that prices of subsidized fuels (gasoline and diesel) will be raised in November 2014 in an attempt to ease the country’s wide current account deficit and government budget deficit (which are primarily caused by costly oil imports), domestic car manufacturers and dealers are expected to post declining earnings in 2015. Besides the subsidized fuel price issue, Indonesia’s car industry is also negatively impacted by the country’s slowing economic growth.

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President Joko Widodo’s unexpected visit to the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/10) signals that the new president of Indonesia is serious about wiping out severe bureaucracy that causes time-consuming and difficult procedures to obtain permits, licenses and certificates in a bid to ease doing business in Indonesia for both foreign and domestic investors. Joko Widodo, popularly known as Jokowi, is eager to tackle the country’s ‘red-tape’ problem as it curtails the pace of economic growth in Indonesia.

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The market showed today (27/10) that the composition of Indonesian President Joko Widodo’s cabinet did not live up to expectations. On Sunday afternoon, Widodo had announced the names of the ministers inside his Working Cabinet (Kabinet Kerja) after having delayed the announcement for almost a week as several of his ministerial candidates needed to be replaced having been red flagged by the country’s Corruption Eradication Commission (KPK). This then heightened expectations that Widodo’s cabinet would constitute a ‘dream team’.

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It was a good start of the week for the benchmark stock index of Indonesia (known as the Jakarta Composite Index, abbreviated IHSG). Various factors, both internal and external, managed to push the index higher on Monday (20/10). Externally, the IHSG was supported by positive Asian indices which responded to last week’s good US economic data (building permits, housing starts, and consumer sentiment). Moreover, the sharply appreciating Indonesian rupiah exchange rate made Indonesian assets more attractive.

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Today (20/10), Central Jakarta seems to have changed into one big party as Joko Widodo was inaugurated as Indonesia’s seventh president earlier this morning. For the remainder of the day celebrations will be held at Monas (National Monument) and surrounding areas. However, it is of vital importance that Widodo (popularly known as Jokowi) will start to focus on this presidential duties tomorrow as the country is facing a number of economic challenges. What are these challenges?

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