Credit rating agency Standards & Poor's (S&P) says Indonesia (and Malaysia) need to increase efforts to build a good track record of timely and reasonable power tariffs adjustments in order to ensure decent returns for investors and recover their costs. Delays in energy price revisions, which are sometimes the result of political strategy, are the key risk that jeopardize the financial stability (and credit profile) of state-owned utility company Perusahaan Listrik Negara (PLN). S&P therefore advises the Indonesian government to enhance efforts to ensure a sound regulatory framework (i.e. a transparent tariff rate-setting mechanism).

Read more ›

The population of Indonesia, which numbers over 255 million people in 2015 (unofficial data), grows at a worrying pace according to Surya Chandra Surapaty, Head of the National Population and Family Planning Agency (BKKBN). Currently, Indonesia's average annual population growth rate stands at 1.49 percent. This means that each year the Indonesian population expands by 4.5 million people (nearly the size of Singapore's total population).

Read more ›

The United Nations Children's Fund (UNICEF) stated in a recently published report that Indonesia has made significant progress in reducing the country’s child mortality rate. According to the report, entitled “Committing to Child Survival: A Promise Renewed (Progress Report 2015)", Indonesia’s mortality rate for children below the age of five years currently stands at 27 deaths per 1,000 births, a significant improvement from the 85 deaths per 1,000 births that was recorded in 1990.

Read more ›

As Indonesia’s economic growth continued to slow in the second quarter of 2015, the Indonesian Employers Association (Apindo) warned of increasing unemployment in Southeast Asia’s largest economy. Each 1 percent gross domestic product (GDP) growth can generate between 200,000 and 300,000 new jobs in Indonesia. As such, when economic growth slows, society misses out on new jobs and with around two million Indonesians entering the labor force each year, job generation is an important task of the government.

Read more ›

On 7 June 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic subjects such as Indonesia’s May inflation and manufacturing activity, updates on the rupiah & Indonesian stocks, new initial public offerings (IPOs) on the Indonesia Stock Exchange, poverty, consumer confidence, and more.

Read more ›

Currently there are still 19.4 million Indonesians suffering from hunger each day, or, one-third of an estimated 60 million people that suffer from hunger in Southeast Asia. The figures are results of research conducted by the Food and Agriculture Organization (FAO) of the United Nations. Mark Smulders, FAO Representative in Indonesia, said that there remains much work to be done. The priority of the FAO is to create ‘Generation Zero Hunger’ and to ensure that Indonesians get enough nutrition to live a productive and healthy life.

Read more ›

One month ahead of the holy fasting month of Ramadan, food prices in Indonesia have already began to rise. It is a traditional phenomenon that ahead of the Ramadan (and during this month as well as the subsequent Idul Fitri celebrations) inflation peaks as Indonesians spend more money on food products (for dinner parties in the evening after the daily fasting has ended) and other consumer products such as clothes and shoes. However, some concerns have arisen as a presidential regulation on price controls is yet to come out.

Read more ›

The price of rice in several Indonesian regions has risen by between 17 to 23 percent to IDR 8,500-9,000 per kilogram as rice production at the start of the year has not been able to meet rice demand. In January 2015, Indonesian rice production stood at 2 million tons, whereas demand reached 2.5 million tons. Inflation of rice is a sensitive issue in Indonesia because it jeopardizes declining poverty rates as poorer segments of Indonesian society spend over half of their total disposable income on food items, primarily rice.

Read more ›

On 4 January 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as updates on inflation, the trade balance, manufacturing, the rupiah exchange rate, poverty, an assessment of the IMF on Indonesia’s economic fundamentals, and more.

Read more ›

Relative and absolute poverty in Indonesia have declined according to the latest data from Statistics Indonesia (BPS) released on Friday (02/01). In September 2014, there were a total of 27.73 million Indonesians categorized as poor, or 10.96 percent of the total population. Both figures were down from 28.6 million people, or 11.46 percent in September last year (BPS releases data on Indonesian poverty twice per year covering the state of poverty in the months of March and September).

Read more ›

For me, G20 summits were always interesting occasions as the leaders of the world’s strongest economies gather to discuss plans to move forward. This year, however, it was the first time that I was quite reluctant to follow the summit (despite the 2022 edition being organized on the Indonesian island of Bali).

Read more ›

In mid-February 2021, Statistics Indonesia (in Indonesian: Badan Pusat Statistik, or BPS) released its latest poverty statistics. As expected, the data show a worrying rise in poverty across Indonesia, a development that is obviously related to the ongoing COVID-19 crisis. Governments’ self-imposed social and business restrictions (both at home and abroad), which aim at preventing the further spread of the virus, drag down economic activity in an unprecedented way.

Read more ›

Poverty and inequality are always sensitive topics, especially in an emerging market like Indonesia where poverty and inequality (in terms of income distribution) have always been a big problem. It is something that puzzles Indonesians too. We often hear Indonesians say “our country is so rich in natural resources, so how can it be that we have so much poverty within our borders?”

Read more ›

The economic and social consequences of the COVID-19 crisis are becoming increasingly clear and frightening. All the self-imposed restrictions on business and social behavior, taken by governments across the world, may protect people’s health to a significant extent, but the policy measures also have devastating economic and social consequences as economic activity nosedives, and businesses collapse. This results in unprecedented mass layoffs as well as growing poverty.

Read more ›

According to the latest data from Indonesia’s Central Statistics Agency (BPS), poverty in Indonesia has fallen to a historic low. BPS provides an update on the country’s poverty statistics twice per year, covering the state of poverty in the months of March and September. On 16 July 2018 the agency, which is a non-ministerial government institution, released the March 2018 data. And these data showed a welcome surprise.

Read more ›

Traditionally the Indonesian government wants to raise spending on social assistance programs when legislative and presidential elections are around the corner in an attempt to become more popular, hence attract more votes. The government under the leadership of Joko Widodo also plans to use this strategy.

Read more ›

Poverty in Indonesia declined to the lowest level ever in March 2018 (Indonesia's Central Statistics Agency, or BPS, releases poverty figures twice per year, covering the months March and September). Based on the latest data, Indonesia's relative poverty figure fell to 9.82 percent of the total population. Thus, 25.95 million Indonesians are now categorized as poor.

Read more ›

The World Bank released the latest edition of its flagship publication Indonesia Economic Quarterly on Tuesday (27/03). The March 2018 edition of the report is entitled "Towards Inclusive Growth". In the report the World Bank is positive about Indonesia's economic outlook after seeing the nation's real gross domestic product (GDP) growth picking up at 5.2 percent year-on-year (y/y) in the fourth quarter of 2017 (accelerating from 5.1 percent y/y in the previous quarter).

Read more ›

The Queen of the Netherlands, Maxima, visited Indonesia between 11-13 February 2018 to monitor the progress of Indonesia's Financial Inclusion Program, a program that was launched in August 2016 during Maxima's last visit to Indonesia. Hence, during her latest visit, the Dutch Queen came in her role as the United Nations Secretary-General's Special Advocate for Inclusive Finance for Development.

Read more ›

The number of people who live in poverty in Indonesia fell by 1.19 million individuals, per September 2017, to 26.58 million, from 27.77 million poor people in March 2017 (Indonesia's Statistics Agency releases poverty data twice per year, covering the situation in the months March and September). This is a significant decline and therefore constitutes a very good development. In relative terms, Indonesia's poverty rate fell 0.52 percent from 10.64 percent to 10.12 percent (over the same period).

Read more ›