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Overview of Indonesia

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Indonesia’s Central Bank Holds Benchmark Interest Rate at 7.75%, Paving the Way for Monetary Policy Easing in the Second Half of the Year

According to a January 16 report by the Jakarta Post, following the recent meeting of the Board of Governors of Bank Indonesia, Central Bank Spokesperson Serryka stated that, in order to better address external challenges posed by the Federal Reserve’s interest-rate hikes and the sluggish global economic recovery, Bank Indonesia has decided to maintain its benchmark interest rate at 7.75%, its lending rate at 8%, and its deposit rate at 5.75%.

2021-04-25

Indonesia’s New Government Is Vigorously Developing the Shipbuilding Industry, Creating New Opportunities for Chinese Enterprises

In October of this year, following President Joko Widodo and his new administration taking office, Indonesia unveiled the vision of building a maritime power and the initiative to develop “maritime highways.” This strategy focuses on advancing maritime connectivity to spur infrastructure development across sea, land, air, and telecommunications networks, foster growth in eastern regions beyond Java, reduce logistics costs, and thereby achieve an average annual economic growth rate of 7%—all aimed at boosting Indonesia’s economic development and improving living standards for its people.

2021-04-25

Indonesian President Unveils Ambitious Five-Year Economic Development and Infrastructure Plan

According to a December 19 report by the Jakarta Post, Indonesian President Joko Widodo announced at the National Development Planning Conference on December 18 the Indonesian government’s medium-term reform agenda and economic development plan for 2015–2019, which include specific targets for boosting domestic production, stimulating economic growth, and improving fiscal balance.

2021-04-25

Indonesia’s Investment Coordinating Board Officially Launches Pilot One-Stop Investment Service

According to a January 14 report by the Jakarta Post, Indonesia’s Investment Coordinating Board will begin a pilot implementation of a “one-stop” investment licensing system effective today, with participation from 15 major provinces across the country. The new investment licensing mechanism is scheduled to be officially launched by the end of this month.

2021-04-25

Indonesia’s Ministry of Trade Requires Letter-of-Credit Settlement for Exports of Key Commodities

According to a January 16 report by The Jakarta Post, Indonesia’s Ministry of Trade has just issued a regulation requiring that all exports of coal, palm oil, oil and gas, and mineral products be settled via letters of credit; otherwise, such exports will be prohibited. The regulation is scheduled to take effect in April. These four product categories accounted for 41% of Indonesia’s total export value from 2009 to 2013, averaging approximately US$71.04 billion per year. Under the new rule, the value of letters of credit will reflect the actual transaction prices for these exports.

2021-04-25

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