Weekly Briefing: Asian Games Ceremony Gives Diversion For Indonesians

JAKARTA (TheInsiderStories) - Good Morning. The 18th Asian Games in Jakarta opened with a lavish ceremony and great fanfare on Saturday (18/08), providing ordinary Indonesians with a much needed diversion amid the endless cycle of economic and political news. There’s a reason to celebrate too. Taekwondo athlete...

Indonesia’s 2020 Oil and Gas Output Likely to Fall

JAKARTA (TheInsiderStories) - Indonesia’ production of both oil and gas will most likely fall in 2020 despite the official projections of a combined 8 percent growth year-on-year, said Rystad Energy in the latest report. The upstream task force (SKKMigas) has set an ambitious oil production target...

Morning Briefing: Indonesia to Revises Bilateral Agreements, Trade War is Tightened

JAKARTA (TheInsiderStories) - Good Morning. The Government of Indonesia announced will revise a number of bilateral trade agreements with partner countries to address trade wars between the United States (U.S) and China, said Finance Minister Sri Mulyani Indrawati onTuesday (10/07). She said, the evaluation also to gain...

Indonesia’s Trade Minister to Visits U.S on Trade War Dispute

JAKARTA (TheInsiderStories) - Following the United States's (U.S) threatened on Indonesian export, Trade Minister Enggartiasto Lukita said to visit United States (U.S) on July 21-28, to maintain a trade balance between the two countries. In the limited cabinet meeting on July 10, President Joko Widodo has urged...

PBoC Policy: How Many More Rate Cuts to Come

JAKARTA (TheInsiderStories) - People's Bank of China (PBoC) cut its one-year loan prime rate (LPR) to 3.85 percent from initially 4.05 percent as the country’ economy contracted for the first time in four decades. The central bank also cut its five-year rate to 4.65 percent...

More Selective Government Support Reduces Credit Quality of Indonesia’s SOEs

JAKARTA (TheInsiderStories) - Support for Indonesia' state-owned enterprises (SOEs) from the Indonesian government (Baa2 stable) is likely to become more selective due to coronavirus disruptions, weighing on the companies' credit quality. We reviewed our government support assumptions for the rated Indonesian SOEs in light of recent defaults...

Insight: Political Elites on The Coal Business Corruption

JAKARTA (TheInsiderStories) – The coal mining sector has become a political commodity and funding source for political campaigns in Indonesia for the past 20 years, both at the national and regional levels. The close relationship between government policies and regulations, royalties, taxes, and government infrastructure,...

Morning Briefing: Indonesia to Revise Luxury Car Taxes

JAKARTA (TheInsiderStories) – Good morning! Indonesian Government to revise luxury goods sales tax on cars to boost automotive production and export. The scheme revision concerning the basis of imposition, engine capacity, vehicle type, principle of imposition, and incentive programs. It said, finance ministry will categorize...

Singapore’s Albizia Lift its Ownerships in Pizza Hut Operator

JAKARTA (TheInsiderStories) - Singapore' Albizia ASEAN Opportunities Fund lift its ownership in the Pizza Hut restaurant chain, PT Sarimelati Kencana Tbk (IDX: PZZA), Indonesian Central Securities Depository reported. As of Nov. 23, the investment fund was owned 688,000 shares or around 6 percent of PZZA'...

IHS Markit Revised up Japan’s Real GDP Growth for 2020

JAKARTA (TheInsiderStories) - IHS Markit revised up its forecast of Japan’ real GDP growth to a contraction of 4.9 percent in 2020 before a rise of 1.8 percent in 2021, reflecting today’ government revision for the first quarter of 2020 and the government’ second economic package...

State Own Enterprises in the Middle of COVID-19

JAKARTA (TheInsiderStories) - The pandemic has highlighted the role of the public sector in saving lives and livelihoods. State-owned enterprises (SOEs) are part of that effort. They can be public utilities that provide essential services. Or public banks that provide loans to small businesses. But some...

Weekly Briefing: US Border Wall Talks Break Down

JAKARTA (TheInsiderStories) – Good morning! Near deadline, United States (US) government discussion to solve border wall funding has broken down. As quoted from Bloomberg, Republicans and Democrats have stopped communicating for now. Previously, both parties have agreed to negotiate the wall and expected to meet...

U.S’s JLL Spark Announces US$100M Global Venture Funds

SINGAPORE (TheInsiderStories) - JLL Spark, a division of U.S-based property research company JLL (NYSE: JLL), announces the creation of JLL Spark Global Venture Fund to accelerate its leadership position in digital real estate services, the company said on May 6. The new entity plans to invest up...

Insight: Indonesia Pursues Tax Fraud to Switzerland

JAKARTA (TheInsiderStories) – The Indonesian government continues to ensure that citizens or legal entities comply with tax regulations and not commit to tax evasion or other economic crimes. One of them was the tax amnesty program in 2016. But the project was unsuccessful. Indonesian assets that turned...

Observer: Widodo, Subianto Likened to Generals with Different Strategies

JAKARTA (TheInsiderStories) – Executive Director of Median  Rico Marbun has likened President Joko Widodo and Prabowo Subianto as two military generals who applied different war strategies in their political campaigns to win the presidential election in 2019. “President Widodo and his running mate Ma’ruf Amin use...

ASEAN-5 Face Rising Credit Risk as Stimulus Fails to Offset COVID-19 Impact

JAKARTA (TheInsiderStories) - Policy measures taken by the ASEAN-5 economies – Indonesia (Baa2 stable), Malaysia (A3 stable), the Philippines (Baa2 stable), Vietnam (Ba3 negative), and Thailand (Baa1 stable) – will reduce some of the negative effects of the COVID-19 outbreak, but will not offset the rising...

Indonesia will Determines Norms of Motorcycle Online

 JAKARTA (TheInsiderStories) - After online taxi, now the Ministry of Transportation is targeting to review motorcycle ride-hailing service. The rules are being prepared, in the form of drafts to be discussed by governments, associations, application owners, and experts in the economy of transportation. According to...

Morning Briefing: Vice President Candidate Ma’ruf Amin hurts Widodo’s Electability

JAKARTA (TheInsiderStories) - Good morning. President Joko Widodo’s pick as running mate in re-election bid in 2019, Ma’ruf Amin, could be a handicap with a recent survey shows the incumbent’s electability drops slightly, mostly come from non-Muslim and first-time voters. Pollster Lembaga Surve Indonesia Denny JA said...

Is a W-shaped Recession in Our Future?

JAKARTA (TheInsiderStories) - All 50 states have begun to lift COVID-19-related restrictions and incoming data are suggesting that economic activity is beginning to pick up, even sharply in some sectors. This has made April the trough of economic activity nationally. However, many states are now showing increases...

Hyundai, VW Plan to Build Car Factory in Indonesia

JAKARTA (TheInsiderStories) - Two global car maker, Germany Volkswagen (VW) and South Korea' Hyundai Motor Corp., plans to build a car factory in Indonesia, a government official said on Thursday (12/20). Director general at Industry ministry Harjanto said, VW wants to build an assembly line to...

Fitch Revises Down India’s Rating to BBB- with Outlook Negative

JAKARTA (TheInsiderStories) - Fitch Ratings revised down India’ outlook to BBB- from stable to negative, stating that the pandemic has significantly weakened this year' economic growth prospects and exposed the challenges associated with a high public-debt burden. The economic activity to contract by 5 percent in the fiscal...

Two Units of Indonesia’s Wijaya Karya Go IPO in 2019

JAKARTA (TheInsiderStories) - Two units of Indonesian construction operator PT Wijaya Karya Tbk (WIKA), namely PT Wijaya Karya Realty (Wika Realty) also PT Wika Industri and Konstruksi (Wika Ikon) will list is shares on the Indonesia Stock Exchange in 2019, said the chief executive...

Smartphone Market Posts a New Record Low in Shipments Impacted by COVID-19

JAKARTA (TheInsiderStories) - In the first quarter of 2020, the Indonesia smartphone market shipped 7.5 million units, declining by 7.3 year over year (YoY) and -24.1 percent quarter over quarter (QoQ), hitting a new record low in the last two years, according to IDC’...

Morning Briefing: Controversy Over Negative Investment Lists Policy

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...

Insight: Indonesia Needs Clear Policies in Energy Sectors

JAKARTA (TheInsiderStories) – The 1970-1990 period was the wealth of Indonesia' oil and gas sector, where this sector contributed up to 63 percent to the State revenues. But since the 1990s the country' crude oil production has experienced a continuing downward trend due to...

Indonesia Trade Deficit US$8.57B in 2018, the Worst in Four Decades

JAKARTA (TheInsiderStories) - Indonesia recorded US$8.57 billion trade deficit in 2018, the worst in more than 4 decades. Statistic Central Agency Chief Suhariyanto said, Indonesia’s historical worst trade balance was in 1975 with $391 deficit. During 2018, Indonesia’s export was $180.06 billion, grew single-digit at...

COVID-19 to Plunge Global Economy Into Worst Recession Since World War II

JAKARTA (TheInsiderStories) - The swift and massive shock of the COVID-19 pandemic and shutdown measures to contain it have plunged the global economy into a severe contraction and will shrink by 5.2 percent in this year. That would represent the deepest recession since the Second World...

Insight: The Geoeconomic Implications of China’s Belt and Road Initiative

JAKARTA (TheInsiderStories) - China hold the Belt and Road Forum for International Cooperation Summit on April 25-27. Around 37 world leaders meet at the summit and scheduled to discuss project financing that respects global debt goals and promotes green growth. The Belt and Road Initiative...

Indonesian Economic Growth Averages 5.7% During 2020-2024

JAKARTA (TheInsiderStories) - Minister and Head of National Development Planning Agency Bambang Brodjonegoro predicted Indonesia's economic growth during 2020-2024 averages 5.7 percent, said one senior official. In that time frame, he said, the lowest economic growth at 5.4 percent and the highest at 6 percent. "Meanwhile, the...

The Deepest Global Recession in 75 years will be the Shortest on Record

JAKARTA (TheInsiderStories) - All signs point to the second-quarter real GDP plunge in the United States (US) and European economies being one for the records—with double-digit quarter-on-quarter (QoQ) declines in the America, Eurozone, and United Kingdom (UK). Anticipating that growth will return in the third quarter...