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Japanese auto giant Toyota Motor Corporation (TMC) will open hybrid vehicle plants in Indonesia to supply the domestic market and is not in rush to go full-electric in Southeast Asia’s biggest nation. Earlier this month, President Jokowi signed an instruction that obliges high-ranking central and regional government officials to use battery electric vehicles (BEV) in their operational duties to lead the transition towards the use of fossil fuel-free vehicles. Toyota will instead begin an aggressive campaign on hybrid vehicles, which use a combination of fossil fuel and batteries, before moving to BEVs. Toyota is a dominant force in the Indonesian automotive industry with a 31 percent share of the national auto sales in the January-August period of the year, according to data from the Indonesian Automotive Industry Association. Together with sister company Daihatsu, Toyota controls about 50 percent of the Indonesian market share.

Indonesia's infl­ation accelerated in September as subsidized fuel prices hike early in the month increased energy and transport costs for the country's consumers. The Central Statistics Agency (BPS) said the consumer price index, a broad basket of good and service prices used to measure in­flation, rose 5.95 percent in September compared to the same month last year. That was the highest infl­ation rate since October 2015. "In September, gasoline, public transport fares, rice, diesel, inter-city fares, online rideshare fares, and household fuel price contribute to the in­ation the most," the Head of BPS Margo Yuwono said. To fight in­ation, Bank Indonesia has increased its benchmark interest rate by 75 basis points to 4.25 percent in the past two months.   https://jakartaglobe.id/business/indonesia-inflation-jumps-to-the-highest-level-in-seven-years

The Outlook projects global growth at a modest 3% this year before slowing further to just 2.2% in 2023. This is well below the pace of economic growth projected prior to the war and represents around USD 2.8 trillion in foregone global output in 2023. Most 2023 growth forecasts for G-20 was reduced by OECD. Indonesia is the only group member with slightly better outlook.   https://www.oecd.org/newsroom/oecd-interim-economic-outlook-warns-of-pervasive-global-economic-slowdown.html https://www.bloomberg.com/news/articles/2022-09-26/world-economy-jolted-by-war-with-recessions-now-seen-looming

Apple and Google are unveiling their latest generation of smartphones, jockeying to distinguish the new devices from previous models. But one of the most signi­cant changes will go largely unnoticed by consumers: some of these phones will not be made in China. Worried about geopolitical tensions and stung by pandemic shutdowns, Google, Apple and others are moving some work to nearby countries. A very small portion of Apple’s latest iPhones will be made in India, and part of Google’s newest Pixel phone production will be done in Vietnam, people familiar with their plans said. Foxconn, Apple’s largest contract manufacturer, recently signed a USD 300 million deal to expand in northern Vietnam with a new factory that will generate 30,000 jobs, according to state media. The latest spending was in addition to USD 1.5 billion that the Vietnamese government had said Foxconn had already invested in the country. This year, Google plans to move manufacturing from Foxconn facilities in southern China to Vietnam, where it will begin assembling its latest model, the Pixel 7, two people with knowledge of the plans said. The shift is a response to growing concerns about the geopolitical tensions and pandemic-induced supply chain disruptions that have involved China in the last few years. China has long been the world’s factory floor for high-tech electronics, unrivaled in its ability to secure legions of high-skilled workers and the production capacity to handle demand for the next hot device.   https://www.nytimes.com/2022/09/01/business/tech-companies-china.html

Vietnam's economy as measured by gross domestic product grew 13.67% in real terms in the July-September period from a year earlier as exports to the U.S. surged. A sharp recovery in personal consumption also contributed to the ­rst quarterly growth of more than 10% since 2009, when comparable data began to be compiled, according to the General Statistics Office of Vietnam. In early September, the International Monetary Fund raised its projection for Vietnamese growth in 2022 to 7%, up 1 percentage point from three months earlier. It called the country's inflation environment relatively subdued and took note of ongoing recoveries in manufacturing, retailing and tourism. https://asia.nikkei.com/Economy/Vietnam-GDP-grows-13.67-in-Q3-on-brisk-exports-to-U.S

In the midst of global uncertainty that is still looming, Indonesia's economic growth performance is believed to be still good. However, there are still domestic risks in the form of rising inflation.  Indonesia's economic growth in 2022 will reach 5.10% on an annual basis and will increase in 2023 to 5.32% on an annual basis. Bank Central Asia (BCA) Chief Economist David Sumual estimates that Indonesia's economic growth will remain strong in the storm of global uncertainty. However, he sees the risk of a slow down in exports due to the global economic slowdown and the normalization of commodity prices. According to him, potential investors are still very optimistic about investing in Indonesia because of structural reforms and various policies issued by the government to attract investment. "They will continue to enter sectors related to infrastructure, logistics, manufacturing, and also retail," said David. https://nasional.kontan.co.id/news/indonesia-masih-kuat-di-saat-perekonomian-dunia-melambat

The government has raised fuel prices by about 30 per cent in order to rein in ballooning energy subsidies. Now, small businesses are worried about their pro­t margins.  In Jakarta, thousands of people rallied against the price hike. Similar protests were also held in other cities such as Surabaya, Makassar and Kendari. As a lower-middle-income economy with a gross national income per capita of USD 4,140 last year, Indonesia’s economy is dependent on its micro, small and medium enterprises (MSMEs).  About 98 per cent of these are micro-enterprises that are sensitive to even minor economic policy shifts. While it is still early days to see the full impact of the fuel price hike, enterprises across Indonesia are already bracing themselves for how it would hit them in the long run. For many small companies, they have started to feel the pinch of the fuel price hike. Their concern is that higher transport costs may lead to ballooning production costs as well as personal spending amid an uncertain economic climate. Hermawati Setyorinny, the chairwoman of the Indonesian Micro, Small and Medium Enterprise Association, said that MSMEs have no other option but to adapt to the situation and try to survive. https://www.channelnewsasia.com/asia/indonesia-subsidised-fuel-price-increase-micro-businesses-2929006

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