Indonesia' re-elected president Joko Widodo will announce his new cabinet in October - Photo by President Office
JAKARTA (TheInsiderStories) — Good morning! Indonesia Young Entrepreneurs Association firmly rejected relaxation of negative investment lists in the 16th economic policy package. Relaxation of the negative list is considered grinding 25 sectors in micro, small, medium enterprises (SMEs) business can be fully owned by foreign investors.
According to the association, government is forcing the relaxation, while what SMEs needed are fiscal and monetary incentives, also legal easing, not foreign investors. The organization also believed that the relaxation of negative investment lists is not relevant in inviting investment to Indonesia.
In the same meeting, Chamber of Commerce and Industry stated the businessmen need more time to equalize perception over the relaxation of negative investment list that will be implemented on Nov. 26, 2018. The socialization will start one day after the implementation.
Amid the controversy, government affirmed that negative investment lists implementation will not postponed. Since 2016, Indonesia opened 41 business fields for investment, but most of realizations weren’t optimal.
Meanwhile, Indonesia Coal Mining Association asked for regulation certainty over domestic market obligation policy, about quota and special price to PT Perusahaan Listrik Negara. Policy certainty is needed to predict coal production and export in 2019.
Furthermore, after audit over Lion Air JT-610 PK-LQP crashes last month, Transportation Ministry urged the airline to fix its human resources quality and increase standard of procedure. Then, Transportation Safety National Committee along with other parties, will continue its investigation of the crash cause.
Lion Air JT-610 flight data recorder has been successfully downloaded. On Nov. 4, the agency have found 1,790 parameters from 69 hours of 19 flights, including its last flight, JT-610 Jakarta-Pangkalpinang. The official statement on the investigation will announce on Nov. 28.
Some House of Representatives members criticized Lion Air after the crash. Commission V member from the opposition Gerindra party Bambang Haryo Soekartono pushed Transportation Minister to close Lion Air business permit.
Meanwhile, a House of Representatives member from pro-government party, Demokrasi Indonesia Perjuangan party, Rendy Lamadjido firmly asked Transportation Minister to soon give sanction to Lion Air, and tighten supervision for foreign pilots.
Transportation ministry stated that light rail transit (LRT) and Jakarta-Bandung high speed train projects in kilometer 11th to 17th will be delayed for seven months. The postponement will be done alternately. For PT Kereta Api Indonesia as LRT operator, this postponement will impact its business plan.
Next year, Goldman Sachs predicted Indonesia economic growth will be slackening to 5 percent, lower than this year’s projection at 5.2 percent. The slowdown is caused by financial tightening and negative fiscal.
Besides, unfavorable external factor such as United States – China trade war and global economy slowdown will make Indonesia government prioritizing economic stability other than economic growth.
In third quarter of 2018, Singapore economic growth grew slower than expected. During July to September 2018, Singapore economy increased by 3 percent while the estimation was 4.7 percent. But the third quarter’s growth realization is higher that the previous period, 2.7 percent in second quarter and 2.6 percent in first quarter.
While, Japan’s October year-on-year inflation hiked to 1.4 percent from 1.2 percent in September. Thyphoon and damaged harvest contributed the food price increase.
Yesterday, Rupiah strengthened by 0.17 percent to 14,592 over the greenback. Followed, the Jakarta Composite Index raised by 0.71 percent to 5,990.81. Foreign recorded net buy at Rp218.87 billion (US$14.89 million).
May you have  a profitable day!
US$1: Rp 14,700
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com