Macro
Indonesia revises GDP forecast to 6.2% vs previous 6.8%; gasoline to rise 44% | Regulation data
(Insider Stories) – Indonesia has updated macroeconomic assumptions from the revised 2013 state budget. Among highlights, economic growth (GDP) is now expected to be 6.2%, while inflation is forecast at 7.2%. Both figures are in line with recent TIS forecasts. Another key figure is the assumption for a 44% rise in subsidized gasoline prices to IDR6,500 Full Article
Exports may rise this year, reversing 2012′s fall - trade ministry official | Sector data
(Insider Stories) - Growth in relatively new markets likely will drive Indonesian exports higher this year after shipments declined in 2012. “Our exports may hit $194-$195 billion (IDR1,900 trillion) this year from about $191 billion last year,” trade ministry export development director Gusmardi Bustami says at a business event, reports say. Exports fell 6% last Full Article
DBS-Danamon deal may temper Indonesia banking M&A - Fitch Ratings | Outlook data
(Insider Stories) - Bank Indonesia’s decision to allow DBS Group Holdings Ltd. (SGX:D05) to take only a 40% initial stake in PT Bank Danamon (IDX:BDMN) rather than the majority holding DBS is seeking may temper inbound M&A interest in the banking sector, Fitch Ratings says. It notes that holdings of between 10%-50% of a bank Full Article
Lion Air to launch Thai subsidiary - Bangkok Post | Company data
(The Insider Stories) - Indonesia’s largest low-cost carrier, Lion Air is setting up a subsidiary airline, Thai Lion Air, and has begun recruiting pilots, cabin attendants and ground staff. Thai Lion Air will be a joint venture with Thai investors owning a mandatory 51% stake and plans to start operations with up to six single-aisle Full Article
Sterling’s slide unlikely to gather pace - Capital Economics | Outlook Data
(Insider Stories) - A slide in the pound likely isn’t set to gather pace, with the USD/GBP likely increasing a touch to $1.55 by year end, London-based research provider Capital Economics says. The following is a Capital Daily report. - Bernanke to emphasise Fed’s flexibility over pace of future asset purchases (15.00 BST) - UK Full Article
Moody’s: Developers to benefit from demand in Greater Jakarta | Outlook Data
Singapore, May 21, 2013 — Moody’s Investors Service says that Indonesian developers will benefit from the solid demand for properties on sale in the residential, office and retail space in Greater Jakarta over the next 12-18 months. The developers will also see stable to high rental occupancy rates in their office and retail portfolios, as Full Article
Maybank FX Research : Indonesia – Domestic Fixing of USD/IDR Reference Rate Debuts | Outlook data
(The Insider Stories) - Below is research from Malayan Banking Bhd. on the commencement of onshore fixing of the U.S. dollar-Indonesian rupiah reference rate by Bank Indonesia. BI begins domestic fixing of USD/IDR reference rate. Today marks the start of Indonesia’s domestic fixing of the USD/IDR reference rate or Jakarta Interbank Spot Dollar Rate (JISDOR). Full Article
Insurance industry supported by GDP growth, but window will narrow for overseas providers | Sector data
(TIS) - Indonesia’s developing insurance industry is supported by strong economic growth, however risks remain in the form of intense industry competition and an uncertain global economic environment, ratings agency PT Pefindo says in an analysis of the sector. TIS Analysis: Indonesia’s insurance market represents one of the world’s biggest potential growth markets. Due to Full Article
New finance minister Basri to hit the ground running - Citibank | Outlook data
(The Insider Stories) - The appointment of investment chief Muhammad Chatib Basri as Indonesia’s new finance minister should assist with negotiations over the 2013 budget - crucial for securing a much-needed increase in subsidized fuel prices - and improve the investment climate in other areas such as human resources and possibly even R&D budgets in Full Article
Indonesia’s Textile Company Aims to Raise IDR2.16 Trillion in IPO
(The Insider Stories) - Indonesia’s largest integrated textile manufacturer, PT Sri Rejeki Isman (Sritex), aims to raise as much as 2.16 trillion rupiah in an initial public offering in June, said the company in public expose today. For 5.6 billion shares or 30.12% of the enlarged capital, The Solo-based company set the IPO’s indicative prices Full Article
Rates on hold, growth slower but resilient; resource sector in focus - Weekly report | Sector data
Main story: Bank Indonesia likely to keep rates on hold; growth to slow but stay resilient Bank Indonesia kept benchmark interest rates steady this week and is likely to remain on hold until later in the year despite an imminent rise in inflation, but despite the central bank’s efforts and an improvement in the balance Full Article
Report : Developing world’s share of global investment to triple by 2030 - World Bank | Outlook data
WASHINGTON, May 16, 2013 – Seventeen years from now, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the latest edition of the Full Article
Eurozone recession extends into 6th quarter - The Associated Press | Outlook data
(The Insider Stories) - The recession across the economy of the 17 European Union countries that use the euro extended into its sixth quarter — longer than the calamitous slump that hit the region in the financial crisis of 2008-9, The Associated Press reports. The following is the text of the report. Eurostat, the EU’s Full Article
Elevator maker Otis eyes booming construction market - The Jakarta Post
(The Insider Stories) – U.S.-based elevator and escalator maker Otis Elevator Co. wants to strengthen its position in Indonesia amid an ongoing construction boom, with 65% of the population expected to be living in major cities by 2030 and government-run construction projects worth tens of billions a year, according to a report. “We want to Full Article
Mandala Airlines expands its network by opening new Jakarta-Yogyakarta route
(The Insider Stories) - Mandala Airlines, Indonesia’s low-cost carrier that’s committed to meet the lifestyle, business, and leisure needs of the passengers, while maintaining the highest standards of safety, security, and on time performance, today expands its network by opening daily Jakarta-Yogyakarta and Yogyakarta-Jakarta flights. Yogyakarta has always been one of the top travel destinations Full Article
