News

Indonesia Turns Out To Be A Surprise Winner As Emerging Markets Crumble
15 Sep 2022
Call it a taper tantrum, times 10. Developing nations are reeling from the Federal Reserve interest-rate hikes and China’s economic slowdown. They are burning through foreign reserves at the fastest pace since the 2008, to defend their currencies and cover higher import bills for food and fuel. Foreign investors are heading for the exits, while frontier economies such as Sri Lanka and Bangladesh have sought bailouts from the International Monetary Fund.       Amid the chaos is a surprise winner. Indonesia, which was singled out as a Fragile Five less than a decade ago for its vulnerable currency and reliance on hot foreign money, has been a haven of relative calm. The rupiah, down only 3.8%, is the third best-performing Asian currency this year. It’s all the more remarkable considering Bank Indonesia has resisted following the Fed and only began raising interest rates this week, by a modest 25 basis points. https://www.bloomberg.com/opinion/articles/2022-08-25/a-surprise-winner-as-emerging-markets-crumble
Indonesia’s Manufacturing PMI Rises To 51.7 In August
15 Sep 2022
  Indonesia’s manufacturing industry has improved at the fastest pace in four months on the back of rising demand. The latest report by IHS Markit, now part of S&P Global, shows that Indonesia’s manufacturing purchasing manager’s index (PMI) reached 51.7 in August, a slight increase from 51.3 in July.   https://www.thejakartapost.com/business/2022/09/01/indonesias-manufacturing-pmi-rises-to-51-7-in-august.html 
Indonesia’s Fuel Increase Caused Container Trucking Costs To Increase 25%
15 Sep 2022
Indonesian government offi­cially announced the fuel price hike. The price increase announced by President Jokowi, which was immediately responded by trucking entrepreneurs who are members of the Indonesian Truck Entrepreneurs Association (Aptrindo). "As soon as there is an o­fficial announcement that fuel prices will go up, we immediately meet in the afternoon, around 19.00 Wib, " said Gemilang Tarigan, Aptrindo's General Chairman in response to Ocean Week. According to Tarigan, Aptrindo decided to increase trucking rate by 25% from the current tariff, and this applies nationally. https://oceanweek.co.id/imbas-bbm-naik-tarif-truk-angkut-kontainer-naik-25
Indonesia’s GDP Growth Fueled By Spending Revival
16 Aug 2022
Indonesia’s economy performed better than estimated in the second quarter, powered by a commodity-led exports boom and robust spending that could nudge the central bank to begin its rate lifto­ff. Gross domestic product grew 5.44% in the three months to June from a year ago, the statistics bureau said on Friday. That’s the fastest increase in four quarters and beats the median estimate of a 5.17% gain in a Bloomberg survey. Compared with the previous quarter, GDP expanded 3.72%, beating the consensus for a 3.47% rise.   https://www.bloomberg.com/news/articles/2022-08-05/indonesia-s-gdp-growth-on-track-amid-mounting-global-uncertainty
Indonesia Manufacturing Purchasing Managers’ Index (PMI) Rises At A Faster Pace
16 Aug 2022
The manufacturing sector in Indonesia continued to expand in July, and at a faster pace, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 51.3. That's up from 50.2 in June, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. New orders across the goods-producing sector increased modestly in July, with the rate of growth accelerating from June's recent low. Firms noted that the rise in new work stemmed from greater client demand and the acquisition of new customers. Stronger demand conditions were largely supported by increased domestic spending, as new export orders fell for the second month running. The decline in foreign client demand was sharp overall and the fastest since last August.   https://www.rttnews.com/3301045/indonesia-manufacturing-pmi-climbs-to-50-6-in-july-s-p-global.aspx
Mitsubishi Pledges USD 666 Million Of Investment In Indonesia
01 Aug 2022
Japanese automotive giant Mitsubishi Motors Corporation, or MMC, has pledged USD 666 million in additional investment in Indonesia over the next three years as it seeks to expand its manufacturing activities to hybrid and electric vehicles production. "MMC had invested Rp 11.3 trillion (USD 752.9 million) for all MMC factories in Indonesia by the end of 2021. The target is that MMC will invest around Rp 10 trillion from 2022 to 2025," the Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement. The company plans to diversify its products, focusing on producing electromotive vehicles (xEV) such as hybrid, plug-in, and fuel-cell electric vehicles. Beyond 2023, the company would start the xEV initiative with Xpander and Pajero Sport models. Mitsubishi will also produce two new electric vehicle models in 2024. It established a local manufacturing arm Mitsubishi Motors Krama Yudha Indonesia (MMKI), in 2018 and has made it a key export base for Mitsubishi. The company aimed to increase its export to 72,000 cars this year and 98,000 cars in 2024, compared to 42,000 cars last year.  From Indonesia, Mitsubishi has exported to 39 destinations in Africa, Asia, and South America and is preparing to ship its product to Australia soon.    https://jakartaglobe.id/business/mitsubishi-pledges-666m-investment-tests-xev-use-in-indonesia
Alibaba To Invest Over USD 100 Million In Indonesia-Listed Smartfren Telecom
01 Aug 2022
Chinese technology giant Alibaba is set to invest in Indonesia-listed telecommunications operator PT Smartfren Telecom, part of the Sinar Mas Group, in a deal that could be worth over USD 100 million, sources told DealStreetAsia.   https://asia.nikkei.com/Spotlight/DealStreetAsia/Alibaba-to-invest-over-100m-in-Indonesia-listed-Smartfren-Telecom
PT Pelindo Terminal Recorded Throughput Of 5.3 Million Teus In The First Semester
01 Aug 2022
Container throughput in the sub-holding of PT Pelindo Terminal Petikemas (SPTP) in the fi­rst semester of 2022 reached 5.3 million TEUs. SPTP noted that the container throughput grew by one percent compared to the same period in 2021. “The container throughput consists of 1.67 million TEUs of overseas containers and 3.68 million TUEs of domestic containers from 27 container terminals managed by SPTP,” said SPTP Corporate Secretary Widyaswendra. Widyaswendra emphasized that the transformation includes standardization and digitization of business processes, increasing competence, and optimizing operational workers.   https://theshippinggazette.com/sptp-recorded-throughput-of-5-3-million-teus-in-­first-semester