Market News

Market News - 22-28 January 2017

"CPO Exit Tax Set at US$18 Per Ton” - Antara News - 28 January 2017

The Indonesian government has fixed the export tax for crude palm oil (cpo) for feb 2017 at a 3.46% hike. Meanwhile, the export reference price of cocoa beans has dropped 6.2% for Feb 2017 because of the price of the commodity in world market. However the exit tax, unlike CPO, has remained unchanged.

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"Secondary Mortgage Firm SMF Books 88% Financing Growth” - The Jakarta Post - 27 January 2017

State-owned secondary mortgage company Sarana Multigriya Finansial (SMF) had disbursed IDR 6.96 trillion than it 2015. The firm saw a jump in profit while its revenue has increased as well.  With the government aim to build around 1 million houses for low income civilians every year to reduce housing backlog; SMF aims to channel IDR 7.7 trillion this year.

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"Indonesian Government Opens Gas Import for Power Plants” - CNN Indonesia - 26 January 2017

State-owned PLN announced that the Indonesian government is preparing new regulations to allocate oil and gas for the power plant. One of those points concerning importing Liquefied Natural gas or LNG for safety issues as well as to reduce the production cost of electricity.  However PLN will not be rushing to import as they are still looking for domestic oil and gas potentials. 

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"2017 Indonensian Economic Growth at 5.3 Percent” - Kompas - 25 January 2017

The Indonesian government has targeted 5.1% for economic growth with 5.3% as maximal growth for 2017. This is due to a number of factors such as new regulations or policies of President Donald Trump, the effects of new economic policies from the US which could significantly affect China, and domestic factors in Indonesia. Domestic’s factors include inflation of food and good’s prices, electricity, gas, etc. To push the economic growth in Indonesia to 6%, the GDP must be 37% but as of right now it still stands at 32%.

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"Rupiah Strengthen after Trump Pulls U.S. Out of TPP” - Tempo English - 24 January 2017

US dollars index reportedly plunge after President Trump withdraw from the Trans-Pacific-Partnership TPP while Indonesian Rupiahs continues to increase sharply since Donald Trump’s inauguration;  closing at 13,372. With the Dollar index continuing to fall and weaken, the Indonesian Rupiah continues to rise. The rise of IDR is in line with lower state bond (SUN) yields and might relate to limited growth.

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"Commodities Prices Stabilize, Economic Growth Rises” - Media Indonesia - 23 January 2017

The development of the global situation lately gives a change of prospect in 2017, one of them being the price of commodities which could give positive economic growth in Indonesia.  With the price of commofities rising will help the export or commodities sectors and help the infrastructure as well. Even if the taxes are relatively, there is no current threat on the current government budget. However, private investors growth are still narrow. 

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"TPP Issue: Government Asks to Focus on Bilateral Partnership” - CNN Indonesia - 22 January 2017

The Institute for Development of Economics and Finance (Indef) thinks that bilaterial or regional relationships have more benefits than multilateral relationships such as the Trans Pasific Partnership. Bilateral and regional relations have more knowledge and less difficult regulations, as well as negotiable. They are far more advantageous since the bilateral partnership can have specific demands while the multilateral usually has more general policies.

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