Indonesia Indonesian Economy News and Updates

[Umigami]

The more not so good news is Indonesia actually must to restituted at least 27 trillion rupiah against tax payer because loosing in the court, last year

And now the video is gone!
I wonder why

 

[HTurk]

I, too, believe that this thread about the Indonesian economy is a tad too positive.

It can't go all in the right direction, that's not realistic. For instance, if you compare Vietnam to Indonesia, you'll see how slow and ponderous the Indonesian economy actually is. Vietnam is much more dynamic, agile and active. It's much more involved in the global environment.

I don't understand why Indonesia is comparatively 'slower' than Vietnam. Is it because you're a nation consisting of many islands which are not always super connected to each other?

Anyways, I wish only the best for my Indonesian friends.

 

[Gary]

I don't understand why Indonesia is comparatively 'slower' than Vietnam. Is it because you're a nation consisting of many islands which are not always super connected to each other?

Not pro business policy...before omnibus law, if a company decide to fire its workers they have to pay a huge sum of money ( equal to 32 months pay ) iirc.

maybe @Indos could explain more

 

[Indos]

I, too, believe that this thread about the Indonesian economy is a tad too positive.

It can't go all in the right direction, that's not realistic. For instance, if you compare Vietnam to Indonesia, you'll see how slow and ponderous the Indonesian economy actually is. Vietnam is much more dynamic, agile and active. It's much more involved in the global environment.

I don't understand why Indonesia is comparatively 'slower' than Vietnam. Is it because you're a nation consisting of many islands which are not always super connected to each other?

Anyways, I wish only the best for my Indonesian friends.

Vietnam FDI is still lower than Indonesia though. Actually IMF has projected Indonesia to reach 5.9 % growth next year, that is a good growth already.

Vietnam geographical location is very attractive since it is next to China and it is also ruled by authoritarian administration, basically their labor union is not as powerful in Indonesia. Their economy growth is related to China fast economic growth for the last 3 decades, and also Samsung from Korea use Vietnam as the production base of handphone. Their export relies on Samsung products which are made in Vietnam.

Omnibus Law that is passed in early 2021 is great actually, many economist think highly on Indonesia currently due to that structural reform. Recent IMF projection, just release Yesterday put Indonesia economic growth at 5.9 percent in 2022, which is a good growth already.

Many who understand Indonesian economy is in positive sentiment now and Rupiah is expected to be the best Asia currency in this year due to that positive sentiments and economic fundamental. The currency perform better than many Asian currencies this year. Today the world has also seen the importance of basic energy commodities like gas, oil, and coal.

Despite we are net oil importer, we get less impact on oil price surge compared to other nations like China and India. We have many coal and we are net gas exporter despite not included in top ten gas exporter, but it shows Indonesia has capability to secure its energy needs. We will likely be seen as more interesting place to be manufacturing base of MNC products after what happen with commodity price surge which is then followed by energy shortage in big economies like Europe, China, and India. And the fact that we dont have winter and sun shines whole year shows our potential in getting electricity through solar panel in the future.

This is residential in South Jakarta, large majority live in houses which means potency to put solar panel on the roof top

 

[Madokafc]

I, too, believe that this thread about the Indonesian economy is a tad too positive.

It can't go all in the right direction, that's not realistic. For instance, if you compare Vietnam to Indonesia, you'll see how slow and ponderous the Indonesian economy actually is. Vietnam is much more dynamic, agile and active. It's much more involved in the global environment.

I don't understand why Indonesia is comparatively 'slower' than Vietnam. Is it because you're a nation consisting of many islands which are not always super connected to each other?

Anyways, I wish only the best for my Indonesian friends.

In my opinion this "slowness" is more of lack of exposure compared to Vietnam as media darling of western countries right now to counter China rise. Jakarta actually doing okay and in some cases is outperform their peer in many indicator of economy and society perks.

 

[Nilgiri]

This forum need Not-so‐good news too

What was it about?

 

[satria]

SOE 'Sick' no more national capital participation

President Joko Widodo (Jokowi) gave several directions to SOE Minister Erick Thohir. One of the directives is not to pamper ailing SOEs with state capital participation (PMN).

Jokowi said that since 7 years ago, he had instructed to merge, consolidate and reorganize SOEs, which at that time were considered too many.

"There are 108 (BUMN), now it has dropped to 41. This is a very good foundation and the clustering is also good. The most important thing in the future that we build is values, core values," Jokowi explained when giving directions to the Directors The main SOEs are in Labuan Bajo, West Manggarai Regency, as quoted in the Presidential Secretariat Youtube show, Saturday (16/10/2021).

Not only about PMN, here are a number of Jokowi's frustrations with the management of SOEs.

more...

Kekesalan Jokowi 'Meledak' di Labuan Bajo, Ini Pemicunya!

Presiden Joko Widodo (Jokowi) memberikan beberapa arahan kepada Menteri BUMN Erick Thohir.

www.cnbcindonesia.com

 

[schuimpjes]

SOE 'Sick' no more national capital participation

President Joko Widodo (Jokowi) gave several directions to SOE Minister Erick Thohir. One of the directives is not to pamper ailing SOEs with state capital participation (PMN).

Jokowi said that since 7 years ago, he had instructed to merge, consolidate and reorganize SOEs, which at that time were considered too many.

"There are 108 (BUMN), now it has dropped to 41. This is a very good foundation and the clustering is also good. The most important thing in the future that we build is values, core values," Jokowi explained when giving directions to the Directors The main SOEs are in Labuan Bajo, West Manggarai Regency, as quoted in the Presidential Secretariat Youtube show, Saturday (16/10/2021).

Not only about PMN, here are a number of Jokowi's frustrations with the management of SOEs.

more...

How about Garuda (airline)? Hear there are a lot of inefficiency there. Do the govt would put them to IPO (with the govt/Holding SOE still hold the veto) or what? May you can answer @Indos

 

[schuimpjes]

Vietnam geographical location is very attractive since it is next to China and it is also ruled by authoritarian administration, basically their labor union is not as powerful in Indonesia. Their economy growth is related to China fast economic growth for the last 3 decades, and also Samsung from Korea use Vietnam as the production base of handphone. Their export relies on Samsung products which are made in Vietnam.

And also when US-China trade war, many Chinese companies that doing trade with US were/are move to Vietnam to evade the tarrif. What a bless for Vietnam since a lot of capitals/investments come to them.

Edit : many companies are willing to move back to China tho wkwk. Pandemic in Vietnam are messing their production, but I think, post-pandemic will be good again.

 

[Indos]

How about Garuda (airline)? Hear there are a lot of inefficiency there. Do the govt would put them to IPO (with the govt/Holding SOE still hold the veto) or what? May you can answer @Indos

Recent Garuda planning is to ditch many of their planes for international routes and more focus on the domestic routes, particularly their low cost subsidiary, Citilink. This strategy is actually done due to Pandemic that will likely be staying for quite long time and reducing international passengers compared to normal period due to procedural factor like the obligation to do quarantine and testing that will create some hurdles to bring back previous volume, since more expensive journey will persist, while domestic route will probably ease in term of procedural so more promising in term of its business opportunities.

I think this situation is good for both N 245 and R 80 program while N 219 will likely get benefit from the e-commerce boom and become more into cargo plane than passenger plane market.

Garuda has already had IPO and the stock is traded in our stock exchange

 

[Indos]

And also when US-China trade war, many Chinese companies that doing trade with US were/are move to Vietnam to evade the tarrif. What a bless for Vietnam since a lot of capitals/investments come to them.

Edit : many companies are willing to move back to China tho wkwk. Pandemic in Vietnam are messing their production, but I think, post-pandemic will be good again.

Yup, but starting from this year, Indonesia looks more promising in securing energy in the country, both in term of the affordable price and adequate supply. Industries IMO will feel more secured to put investment in Indonesia for their long term business.

Many analist have talked about slowing down of China, basically China government only put 6 % growth for this year, much less than international projection. Indonesia will likely get less impact by China slow down since our products sold there are primary and basic goods like palm oil, steel, stainless steel, and coal, secondary goods that will be getting bigger impact like cars and others

 

[schuimpjes]

Garuda has already had IPO and the stock is traded in our stock exchange

Damn, I thought they were not yet done that. The sentiments about Garuda are always bad, I don't think anyone would buy their stocks which mean people have to sells theirs in low price wkwk. Felt almost non existent tho, no one talk about it wkwk.

 

[schuimpjes]

N 219 will likely get benefit from the e-commerce boom and become more into cargo plane than passenger plane market.

This thing will never happen if small towns or remote areas doesn't have internet connection and airport or at least airstrip. That 2 infrastructures are must.

 

[NEKO]

Garuda should cleanse themself from problematic boomer, there is so much scandals from smuggling harley and brompton, corruptions, shaddy dealing with Iran (violating US sanction against Iran), faking financial report... what the heck does they think our BUMN are? Their grandparent's company?

 

[Madokafc]

 

[Madokafc]

Traditional Smith in Java starting to use machine for smithing process

 

[Madokafc]

There is quite eye opener

 

[NEKO]

The government reported on Thursday that it had secured US$32.7 billion worth of investment commitments in various sectors, such as vaccine manufacturing and distribution, from UAE businesses.

UAE woos Jokowi with investments, personal favors - Middle East and Africa - The Jakarta Post

The business deals may have been the reason for President Joko "Jokowi" Widodo's attraction to the United Arab Emirates, but what business he gets in return is just one aspect of Indonesia’s blossoming relationship with the oil-rich Gulf state.

www.thejakartapost.com

 

[Nilgiri]

Indonesia, India beckon as Fed tapers without tantrums

Last time the Federal Reserve moved toward reducing bond buying, it triggered a rush of funds out of emerging markets. This time is different, investors say, as they lay bets on sparkling returns extending in some of Asia's biggest developing economies.

www.reuters.com

Indonesia, India and Vietnam expected to do lot better in coming years....

@Indos @Viva_vietnamm et al

 

[Viva_vietnamm]

Indonesia, India beckon as Fed tapers without tantrums

Last time the Federal Reserve moved toward reducing bond buying, it triggered a rush of funds out of emerging markets. This time is different, investors say, as they lay bets on sparkling returns extending in some of Asia's biggest developing economies.

www.reuters.com

Indonesia, India and Vietnam expected to do lot better in coming years....

@Indos @Viva_vietnamm et al

true, when the tension between US and CN get much worse, more and more companies will wanna quit CN to Indonesia, India and Vietnam to avoid trade war