Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors

[Indos]

Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors​

By Matthew Burgess and Jorgelina do Rosario
August 14, 2024 at 8:39AM EDT




(Bloomberg) -- Indonesian assets posted some of the biggest gains in emerging markets Wednesday as the expected start of Federal Reserve easing next month pushed investors to increase exposure to countries with high carry and growth prospects.

The rupiah advanced by as much as 1% against the dollar, its best single-day gain of the year. The equity benchmark in Jakarta advanced for a fourth day to a record high. The nation’s external bond due February 2054 added 1.1 cent on the dollar for the biggest gain in the Bloomberg EM Sovereign Total Return Index. Twenty one of 24 top performers in the gauge belonged to the country.

The gains come amid improving risk appetite in world markets and a rally in high-yielding assets as investors rush to lock in returns before the Fed’s rate cuts lower global borrowing costs. International funds bought a net $165.8 million of Indonesian debt on Tuesday, with a total of $796 million this month, while overseas investors bought a net $30.7 million of Jakarta stocks the same day, according to data compiled by Bloomberg.

“For foreign investors, the 6% yields offered by rupiah bonds offer appealing carry, and seemingly a no-brainer given Indonesia’s positive growth, inflation and current-account outlooks,” said Satria Sambijantoro, head of research at PT Bahana Sekuritas in Jakarta.

Easing Ahead

The rupiah rally takes the pressure off Bank Indonesia, which opens up to rate cuts soon after the Fed. Barclays expects the bank to cut interests rate by 75 basis points this year starting in September, with no cut at a meeting next week as policymakers will first look at the Fed’s rate path.

Foreign holdings of Indonesia global bonds still remain below pre-pandemic levels, and “short-covering inflows are expected to trigger bond performance,” added Nagaraj Kulkarni, co-head of Asia rates ex-China at Standard Chartered Plc in Singapore. “We are positive on IDR bonds, and we are recommending investors to buy 10-year IDR bonds.”

Southeast Asia’s largest economy has also been delivering lower inflation and steady growth prospects. Indonesia’s GDP remained above 5% last quarter, and President-elect Prabowo Subianto, who’s set to start his five-year term in October, has pledged to accelerate activity while remaining within its fiscal constraints. Indonesia is set to present its 2025 budget on Friday.

The country is also benefiting from uncertainty in global growth prospects, said Jeffrey Zhang, a strategist at Credit Agricole CIB in Hong Kong. “Given the rising challenges around global-growth outlook, investors may favor markets with less uncertainties in growth and policy implementation, and we think Indonesia would be one market with potential to well weather the global complex,” he said.

©2024 Bloomberg L.P.

Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors

Indonesian assets posted some of the biggest gains in emerging markets Wednesday as the expected start of Federal Reserve easing next month pushed investors to increase exposure to countries with high carry and growth prospects.

www.bnnbloomberg.ca

Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors

Indonesian assets posted some of the biggest gains in emerging markets Wednesday as the expected start of Federal Reserve easing next month pushed investors to increase exposure to countries with high carry and growth prospects.

www.bloomberg.com

 

[Indos]

Indonesia: Financial Sector Assessment Program-Financial System Stability Assessment​

Publication Date:

August 8, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The financial system appears to be broadly resilient, has strong capital and liquidity buffers but remains relatively small and dominated by banks, especially few state-owned banks. Household and corporate indebtedness and public debt are low. The macroprudential policy framework features both financial stability and development objectives. The recently passed Financial Sector Omnibus Law (FSOL) will make notable reforms to the financial sector.

Series:

Country Report No. 2024/272

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Asset and liability management Commercial banks Credit Crime Financial institutions Financial regulation and supervision Financial sector policy and analysis Financial sector stability Foreign exchange Liquidity Loans Macroprudential policy Money Stress testing

Indonesia: Financial Sector Assessment Program-Financial System Stability Assessment

The financial system appears to be broadly resilient, has strong capital and liquidity buffers but remains relatively small and dominated by banks, especially few state-owned banks. Household and corporate indebtedness and public debt are low. The macroprudential policy framework features both...

www.imf.org

 

[Indos]

Indonesia’s Record Investment Inflows: Key Highlights from H1 2024​

August 20, 2024
Posted by ASEAN Briefing
Written by Ayman Falak Medina Reading Time: 3 minutes

According to Indonesia’s Ministry of Investment, the country secured some 829 trillion rupiah (US$53 billion) in combined foreign and domestic investments in the first half of 2024 (January-June). This represents a 22.3 percent increase from the same period in 2023.


Of the 829 trillion rupiah in realized investment, 50.8 percent came from foreign investments with the remaining from domestic investors. Further, the realized investment is approximately 50.3 percent of Indonesia’s 2024 investment target of 1,650 trillion rupiah (US$103 billion).


As with 2023, Indonesia has seen the most investments in its downstream metal industry.

Indonesia’s top FDI sources for January-June 2024​

The top 10 sources of foreign investment in Indonesia for this period are as follows:

1. Singapore – US$8.8 billion;
2. China – US$3.9 billion;
3. Hong Kong – US$3.8 billion;
4. United States – US$2.4 billion.
5. Japan – US$1.79 billion;
6. South Korea – US$1.76 billion;
7. Malaysia – US$1.73 billion;
8. Netherlands – US$816 million;
9. British Virgin Islands – US$395 million; and
10. United Kingdom – US$306 million.

Notable sectors that attracted major investments in Indonesia​

The basic metals industry​

Indonesia’s basic metals industry saw 122 trillion rupiah (US$7.8 billion) in domestic and foreign investments in the first half of 2024.


The country aims to capitalize on its vast mineral wealth to advance its downstream mineral industry, with a strong focus on nickel. As the holder of the world’s largest nickel reserves, estimated at 22 million tons, Indonesia is strategically leveraging these resources, along with other minerals, to attract FDI for the development of local smelters.


As such, Indonesia is developing an integrated electric vehicle (EV) supply chain and aims to become one of the world’s top three producers of EV batteries by 2027. Further, Indonesia aims to produce EV batteries with a total capacity of 140GWh per year by 2030, which will account for between 4 to 9 percent of global demand.

Transportation and telecommunications​

In the first half of 2024, Indonesia recorded 89.2 trillion rupiah (US$5.7 billion) in domestic and foreign investments in the transportation and telecommunications sectors.


Indonesia trails behind only China and India in the number of cellular phone subscriptions with 355 million subscribers. Moreover, In late 2019, the government announced the completion of the Palapa Ring project – a priority infrastructure project that aimed to provide access to 4G internet services to more than 500 regencies across the country. As such, the country now boasts an estimated 258 million 4G subscribers.


Indonesia’s transportation sector is a vital component of the nation’s economy, supporting its expansive archipelago of over 17,000 islands.


For example, in the road transport sector, the government has prioritized the expansion of toll road networks. The Trans-Sumatra Toll Road, one of the most significant projects, is part of a broader initiative to boost connectivity across the island of Sumatra. The project aims to construct over 2,000 kilometers of toll.

Indonesia’s rail sector has also seen major investments, particularly in urban rail networks and high-speed rail projects. Indonesia successfully launched Southeast Asia’s first high-speed rail on October 2, 2023. The 142km track stretches from Jakarta to Bandung, the provincial capital of West Java province and the third largest city in Indonesia, cutting down travel time from two to three hours by conventional railway to just 40 minutes using the bullet train.

Mining​

Indonesia is actively seeking to add more value to its mining sector by focusing on downstream processing and refining of its abundant mineral resources. Foreign and domestic investments in the first half of 2024 reached 87.9 trillion rupiah (US$5.6 billion).


In addition to nickel, Indonesia’s strategy to add more value to its mining sector also extends to its coal and gold industries, both of which play significant roles in the country’s economy.


Indonesia is one of the world’s largest producers and exporters of coal, particularly thermal coal used in power generation. In 2023, the country exported 508 million tons of coal. To add value to its coal industry, Indonesia is focusing on developing coal downstream projects, including coal gasification, coal liquefaction, and coal-to-dimethyl ether (DME) production.


Indonesia is also a significant producer of gold, with major mining operations spread across several islands, including Sumatra, Kalimantan, and Papua. The country produces some four percent of global gold production, half of which originates in the Grasberg mine in Papua province. The mine is believed to contain the world’s largest gold reserves (approx. 67 million ounces) and is operated by local company PT Freeport Indonesia and American mining giant Freeport-McMoRan.

Indonesia’s attractiveness as an investment destination​

The significant rise in investment inflows underscores Indonesia’s growing attractiveness as an investment destination. The sharp increase from the previous year indicates strong investor confidence in the country’s economic stability and growth prospects.


However, challenges remain, such as ensuring the rapid development is sustainable. The government’s continued efforts to streamline regulations and provide incentives will maintain this positive investment trajectory.

Indonesia's Record Investment Inflows: Key Highlights from H1 2024

Indonesia achieved a record-breaking investment inflows in the first half of 2024, driven by significant foreign and domestic interest across key sectors.

www.aseanbriefing.com

 

[Indos]

World Bank country classifications by income level for 2024-2025​

• Eric Metreau
• Kathryn Elizabeth Young
• Shwetha Grace Eapen

July 01, 2024








The World Bank Group assigns the world’s economies[1] to four income groups: low, lower-middle, upper-middle, and high. The classifications are updated each year on July 1, based on the GNI per capita of the previous calendar year. GNI measures are expressed in United States dollars[2] using conversion factors derived according to the Atlas method, which in its current form was introduced in 1989[3]. The World Bank’s income classification aims to reflect a country’s level of development, drawing on Atlas GNI per capita as a broadly available indicator of economic capacity.

The classification of countries into income categories has evolved significantly over the period since the late 1980s. In 1987, 30% of reporting countries were classified as low-income and 25% as high-income countries. Jumping to 2023, these overall ratios have shifted down to 12% in the low-income category and up to 40% in the high-income category.

The scale and direction of these shifts, however, varies a great deal between world regions. Here are some regional highlights:

• 100% of South Asian countries were classified as low-income countries in 1987, whereas this share has fallen to just 13% in 2023.
  
  
• In the Middle East and North Africa there is a higher share of low-income countries in 2023 (10%) than in 1987, when no countries were classified to this category.
  
  
• In Latin America and the Caribbean, the share of high-income countries has climbed from 9% in 1987 to 44% in 2023.
  
  
• Europe and Central Asia has a slightly lower share of high-income countries in 2023 (69%) than it did in 1987 (71%).

These changing compositions are depicted visually in the diagram below, which shows country classifications by region and over time since 1987.

Classification changes​

The updated country income classifications for FY25, based on the GNI per capita of 2023, are available here.

From a statistical perspective, classifications can change for two reasons:

1. Changes to Atlas GNI per capita: In each country, factors such as economic growth, inflation, exchange rates, and population growth can all influence the level of Atlas GNI per capita. Revisions to improve methods and data can also have an impact. Updated data on Atlas GNI per capita for 2023 can be accessed here.
   
   
2. Changes to classification thresholds: To keep income classification thresholds fixed in real terms, they are adjusted annually for inflation using the Special Drawing Rights (SDR) deflator, a weighted average of the GDP deflators of China, Japan, the United Kingdom, the United States, and the Euro Area. The new thresholds for Atlas GNI per capita (in US$) are as follows:

The chart below shows the economies moving to new income categories this year:




This year, three countries—Bulgaria, Palau, and Russia—moved from the upper-middle-income to the high-income category:

• Bulgaria has been steadily approaching the high-income threshold with modest growth throughout the post-pandemic recovery period, which continued in 2023 as real GDP grew 1.8%, supported by consumption demand.
  
  
• Palau also continued its post-pandemic recovery as GDP returned to previous levels, growing by 0.4% in real terms. With inflation (as measured by the GDP deflator) at 8.1%, nominal GNI increased 10.0%.
  
  
• Economic activity in Russia was influenced by a large increase in military related activity in 2023, while growth was also boosted by a rebound in trade (+6.8%), the financial sector (+8.7%), and construction (+6.6%). These factors led to increases in both real (3.6%) and nominal (10.9%) GDP, and Russia’s Atlas GNI per capita grew by 11.2%.

Algeria, Iran, Mongolia, and Ukraine all moved up from the lower-middle-income to the upper-middle-income category this year:

• While the Algerian economy grew 4.1% in 2023, the main reason for the upward reclassification was a comprehensive revision to national accounts statistics undertaken by the Algerian authorities (Office National des Statistiques) to align with current international standards. This realignment resulted in an upward revision to the level of GDP (on average 13.3% higher over the 2018-2022 period) due, for example, to the expansion of investment estimates to include research and development, improved methods for measuring production in public administration, and improved coverage of the non-observed economy.
  
  
• Iran’s economy grew 5.0% in 2023, driven mainly by oil exports and supported by gains in services and manufacturing. GNI jumped 39.5% in nominal terms which, combined with the depreciation of the Iranian rial, resulted in a 17.6% increase of the Atlas GNI per capita.
  
  
• Mongolia continued its recovery after the pandemic, with real GDP increasing 7.0% in 2023. Growth was driven by expansions in mining of 23.4%, along with higher export prices which boosted exports by 53.4%.
  
  
• Ukraine’s upward change in classification resulted from a resumption of economic growth in 2023 (real GDP grew 5.3%, following a drop of 28.8% in 2022) along with a continued decline in population, which has fallen more than 15% since the invasion from Russia began. These factors were further amplified by price increases of domestically produced goods and services to result in a large increase in nominal Atlas GNI per capita of 18.5%. While Ukraine’s economy was significantly impaired by Russia’s invasion, real growth in 2023 was driven by construction activity (24.6%), reflecting a sizable increase in investment spending (52.9%) supporting Ukraine’s reconstruction effort in the wake of ongoing destruction.

West Bank and Gaza was the only country whose classification moved downward this year. The conflict in the Middle East began in October 2023, and while the impact on West Bank and Gaza was limited to the fourth quarter, its scale was nonetheless sufficient to lead to a 9.2% drop in nominal GDP (-5.5% in real terms). Since West Bank and Gaza’s economy was close to the threshold (it entered the upper-middle-income category only last year), these declines brought Atlas GNI per capita back down to the lower-middle-income category.

​

More information​

Detailed information on how the World Bank Group classifies countries is available here. The country and lending groups page provides a complete list of economies classified by income, region, and World Bank lending status and includes links to prior years’ classifications. The classification tables include World Bank member countries, along with all other economies with populations greater than 30,000. These classifications reflect the best available GNI figures for 2023, which may be revised as countries publish improved final estimates.

Data for GNI, GNI per capita, GDP, GDP PPP, and Population for 2023 are now available on the World Bank's Open Data Catalog. Note that these are estimates and may be revised. For more information, please contact us at [email protected].

---

[1] The term country, used interchangeably with economy, does not imply political independence but refers to any territory for which authorities report separate social or economic statistics.
[2] In countries where dual or multiple exchange rates are in use, the exchange rate used to convert local currency units to US$ is an average of these exchange rates, provided necessary data are available.
[3] For data beginning in reference year 1987.

The authors are pleased to acknowledge the essential contributions of our colleagues, Charles Kouame, and Tamirat Yacob to the preparation of this piece.

Please note: The country classification described here aims to serve analytical purposes and changes have no direct impact on the eligibility for World Bank resources. In the classification used for World Bank operational purposes, a range of additional criteria are considered to determine country eligibility and the terms and conditions of Bank financing. For more information, please see the IBRD Financial Products web page.

---

• Africa
• East Asia and Pacific
• Europe and Central Asia
• Latin America & Caribbean
• Middle East and North Africa
• South Asia
• The World Region

World Bank country classifications by income level for 2024-2025

Explore the updated World Bank country income classifications for 2024-2025, highlighting GNI per capita shifts and global economic trends. Discover which countries moved between income categories and understand the factors driving these changes.

blogs.worldbank.org

 

[Indos]

Top spender Indonesia accounted for over half of online purchases in S-E Asia in 2022: Study​

Indonesia topped online spending for Southeast Asia in 2022, accounting for more than half of the region’s purchases on digital platforms, according to a report by Singapore-based venture firm Momentum Works.

The report analysed spendings across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Total Gross Merchandise Value (GMV) in the region, which refers to the value of goods sold via e-commerce platforms, hit US$99.5 billion, up from US$87.1 billion in 2021 and US$54.8 billion in 2020. Southeast Asia’s total GMV is projected to increase to US$175 billion in 2028.

Indonesia accounted for 52 percent of the figure in 2022, with GMV totalling US$51.9 billion.

Shopee is the most commonly used e-commerce platform in the region, with total GMV in 2022 at US$47.9 billion. TikTok, meanwhile, has been gaining ground in the region through TikTok Shop. It reportedly aims to more than triple its GMV in the region.

Going forward, online spending could be impacted by various factors such as the resumption of retail shopping, inflation, rising interest rates and the rise in commodity prices, the report states.

• Total ecommerce platform GMV in Southeast Asia grew 1.8 times from 2020 to 2022, totalling ~ US$ 100B;
• Shopee and Lazada are the top 2 ecommerce platforms in most countries, except Indonesia
• Indonesia contributes 52% of the region’s GMV; while Singapore and Malaysia lead in GMV per capita;
• Southeast Asia’s total GMV is projected to be US$175 billion in 2028, under a normal scenario with the potential of upside to US$232 billion under the best case scenario.

Southeast Asia’s ecommerce sector endured strong headwinds in 2022. Despite all these, growth and competition continue, with the total GMV of Southeast Asia’s 9 leading ecommerce platforms reaching US$ 99.5 billion in 2022, 1.8 times that of 2020 – the first year of the pandemic.

Purchase Momentum Works’ Ecommerce in Southeast Asia 2023 report for the breakdown of these numbers, and more importantly the insights connecting the dots behind.

Ecommerce in Southeast Asia 2023 | Momentum Works

Total ecommerce platform GMV in Southeast Asia grew 1.8 times from 2020 to 2022, totalling ~ US$ 100B; Shopee and Lazada are the top 2 ecommerce platforms in most countries, except Indonesia Indonesia contributes 52% of the region’s GMV; while Singapore and Malaysia lead in GMV per capita...

momentum.asia

 

[Indos]

Indonesia Working on Dollar Pressures: Finance Minister​

 

[Indos]

Indonesia’s Record Investment Inflows: Key Highlights from H1 2024​

August 20, 2024
Posted by ASEAN Briefing
Written by Ayman Falak Medina Reading Time: 3 minutes

According to Indonesia’s Ministry of Investment, the country secured some 829 trillion rupiah (US$53 billion) in combined foreign and domestic investments in the first half of 2024 (January-June). This represents a 22.3 percent increase from the same period in 2023.


Of the 829 trillion rupiah in realized investment, 50.8 percent came from foreign investments with the remaining from domestic investors. Further, the realized investment is approximately 50.3 percent of Indonesia’s 2024 investment target of 1,650 trillion rupiah (US$103 billion).


As with 2023, Indonesia has seen the most investments in its downstream metal industry.

Indonesia’s top FDI sources for January-June 2024​

The top 10 sources of foreign investment in Indonesia for this period are as follows:

1. Singapore – US$8.8 billion;
2. China – US$3.9 billion;
3. Hong Kong – US$3.8 billion;
4. United States – US$2.4 billion.
5. Japan – US$1.79 billion;
6. South Korea – US$1.76 billion;
7. Malaysia – US$1.73 billion;
8. Netherlands – US$816 million;
9. British Virgin Islands – US$395 million; and
10. United Kingdom – US$306 million.

Notable sectors that attracted major investments in Indonesia​

The basic metals industry​

Indonesia’s basic metals industry saw 122 trillion rupiah (US$7.8 billion) in domestic and foreign investments in the first half of 2024.


The country aims to capitalize on its vast mineral wealth to advance its downstream mineral industry, with a strong focus on nickel. As the holder of the world’s largest nickel reserves, estimated at 22 million tons, Indonesia is strategically leveraging these resources, along with other minerals, to attract FDI for the development of local smelters.


As such, Indonesia is developing an integrated electric vehicle (EV) supply chain and aims to become one of the world’s top three producers of EV batteries by 2027. Further, Indonesia aims to produce EV batteries with a total capacity of 140GWh per year by 2030, which will account for between 4 to 9 percent of global demand.

Transportation and telecommunications​

In the first half of 2024, Indonesia recorded 89.2 trillion rupiah (US$5.7 billion) in domestic and foreign investments in the transportation and telecommunications sectors.


Indonesia trails behind only China and India in the number of cellular phone subscriptions with 355 million subscribers. Moreover, In late 2019, the government announced the completion of the Palapa Ring project – a priority infrastructure project that aimed to provide access to 4G internet services to more than 500 regencies across the country. As such, the country now boasts an estimated 258 million 4G subscribers.


Indonesia’s transportation sector is a vital component of the nation’s economy, supporting its expansive archipelago of over 17,000 islands.


For example, in the road transport sector, the government has prioritized the expansion of toll road networks. The Trans-Sumatra Toll Road, one of the most significant projects, is part of a broader initiative to boost connectivity across the island of Sumatra. The project aims to construct over 2,000 kilometers of toll.

Indonesia’s rail sector has also seen major investments, particularly in urban rail networks and high-speed rail projects. Indonesia successfully launched Southeast Asia’s first high-speed rail on October 2, 2023. The 142km track stretches from Jakarta to Bandung, the provincial capital of West Java province and the third largest city in Indonesia, cutting down travel time from two to three hours by conventional railway to just 40 minutes using the bullet train.

Mining​

Indonesia is actively seeking to add more value to its mining sector by focusing on downstream processing and refining of its abundant mineral resources. Foreign and domestic investments in the first half of 2024 reached 87.9 trillion rupiah (US$5.6 billion).


In addition to nickel, Indonesia’s strategy to add more value to its mining sector also extends to its coal and gold industries, both of which play significant roles in the country’s economy.


Indonesia is one of the world’s largest producers and exporters of coal, particularly thermal coal used in power generation. In 2023, the country exported 508 million tons of coal. To add value to its coal industry, Indonesia is focusing on developing coal downstream projects, including coal gasification, coal liquefaction, and coal-to-dimethyl ether (DME) production.


Indonesia is also a significant producer of gold, with major mining operations spread across several islands, including Sumatra, Kalimantan, and Papua. The country produces some four percent of global gold production, half of which originates in the Grasberg mine in Papua province. The mine is believed to contain the world’s largest gold reserves (approx. 67 million ounces) and is operated by local company PT Freeport Indonesia and American mining giant Freeport-McMoRan.

Indonesia’s attractiveness as an investment destination​

The significant rise in investment inflows underscores Indonesia’s growing attractiveness as an investment destination. The sharp increase from the previous year indicates strong investor confidence in the country’s economic stability and growth prospects.


However, challenges remain, such as ensuring the rapid development is sustainable. The government’s continued efforts to streamline regulations and provide incentives will maintain this positive investment trajectory.

Indonesia's Record Investment Inflows: Key Highlights from H1 2024

Indonesia achieved a record-breaking investment inflows in the first half of 2024, driven by significant foreign and domestic interest across key sectors.

www.aseanbriefing.com

For information, Indonesia investment figure doesnt include its big oil and gas sector investment. And it also doesnt include investment in financial sector.

 

[Indos]

Investment Realization Hits Rp 829.9 Trillion in First Half of 2024​

September 4, 2024 | 1:14 pm


President Joko "Jokowi" Widodo has appointed Rosan Roeslani as the new Investment Minister and Head of the Investment Coordinating Board (BKPM), replacing Bahlil Lahadalia, on Monday, Aug. 19, 2024. (Beritasatu.com/Mita Amalia Hapsari)



Jakarta. Investment Minister and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, announced that Indonesia's investment realization for the first half of 2024 reached Rp 829.9 trillion ($53.59 billion).

"As of the first semester of 2024, the realized investment stands at Rp 829.9 trillion," Rosan said in Jakarta on Tuesday.

Roeslani highlighted that this figure accounts for 67 percent of the ministry's target of Rp 1,239 trillion. However, compared to President Joko Widodo's investment target of Rp 1,650 trillion, the realization for the first half of 2024 is about 50.3 percent.

Investment distribution between Java and outside Java was fairly balanced, with investments outside Java totaling Rp 416.2 trillion (50.2 percent) and those in Java reaching Rp 413.7 trillion (49.8 percent).

Foreign Direct Investment (FDI) and Domestic Investment (DI) were also nearly balanced, with FDI amounting to Rp 421.7 trillion (50.8 percent) and DI totaling Rp 408.2 trillion (49.2 percent).

"Additionally, the employment absorption for the first half of 2024 was 1.23 million people," he added.

Rosan Roeslani remains optimistic about achieving the full-year investment target of Rp 1,650 trillion.

Investment Realization Hits Rp 829.9 Trillion in First Half of 2024

Indonesia's investment realization for the first half of 2024 reached Rp 829.9 trillion ($53.59 billion).

jakartaglobe.id

 

[Indos]

Indonesia Stock Market Hits Record Highs, JCI and Market Cap Surge in Early September​

Faisal Maliki Baskoro

September 7, 2024 | 10:15 am


Jakarta. The Indonesian stock market closed the first week of September with record highs in both the Jakarta Composite Index (JCI) and market capitalization. On Friday, the market capitalization reached a new all-time high of Rp 13,217 trillion ($855 billion), surpassing the previous record of Rp 13,127 trillion set on Tuesday.


The JCI hit its highest level ever at 7,721.846, beating the earlier record of 7,694.530 set on the same Tuesday.


During the week of September 2-6, the average daily trading volume jumped 13.27 percent to 21.98 billion shares from 19.40 billion shares the previous week. Market capitalization also grew 0.78, while the JCI saw a 0.67 percent increase.


The average daily transaction frequency dropped 6.44 percent to 1.12 million trades from 1.2 million the previous week. The average daily transaction value experienced a significant 70.18 percent decline, down to Rp10.69 trillion from Rp 35.86 trillion the week before.

Foreign investors recorded a net buy value of Rp 1.03 trillion on Friday, with a total net buy of Rp 30.99 trillion throughout 2024.


As of 2024, a total of 105 bond and Islamic bond (sukuk) issuances from 63 issuers have been recorded, amounting to Rp 87.19 trillion. The Indonesia Stock Exchange (IDX) currently lists 586 bonds and sukuk issues, with an outstanding value of Rp 459.66 trillion and $60.12 million, issued by 132 companies. Additionally, 186 series of Government Bonds (SBN) worth Rp 6,182.86 trillion and $502.10 million are listed on the IDX.


Meanwhile, Wall Street faced another sell-off on Friday, with technology stocks taking the hardest hit after a disappointing US jobs report added to concerns about the economy.


The S&P 500 fell 1.7 percent, marking its worst week since March 2023. Tech giants like Broadcom and Nvidia led the decline, as fears grew that their valuations had surged too high during the artificial intelligence boom. This pulled the Nasdaq composite down by 2.6 percent, the steepest drop among major indexes.


The Dow Jones Industrial Average lost 410 points, or 1 percent, after erasing an early gain of 250 points.


Despite its dismal week, the S&P 500 remains just 4.6 percent below its all-time high set in July. It’s also still up 13.4 percent for 2024 so far.

Indonesia Stock Market Hits Record Highs, JCI and Market Cap Surge in Early September

The Indonesian stock market closed the first week of September with record highs in both the Jakarta Composite Index (JCI) and market capi

jakartaglobe.id

 

[Indos]

Indonesia’s Super Grid Becomes One Of The Keys To Clean Energy Penetration​

Cirata Dam solar panel, West Java, Indonesia

PLTS Terapung Cirata Cuma Makan Lahan Waduk 4%

Kementerian ESDM menyebut PLTS Terapung Cirata berkapasitas 192 MWp baru memakai sebesar 4% permukaan Waduk Cirata.

www.cnbcindonesia.com

By
Pooja Chandak
8th February 2023


The government plans to build an underwater power cable to connect five main areas of electricity in Indonesia or what is known as the Nusantara Supergrid Electrical Network. With the interconnection of the Supergrid power network, scattered sources of new renewable energy (EBT) can be utilized optimally so that the national EBT-based energy mix can increase.

“We will create what is called a national super grid or super grid because we are an archipelago consisting of 17,000 or 18,000 islands which in time we will connect with underwater power cables,” said the Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Rida Mulyana This afternoon at the 2023 Indonesian Youth National Committee (KNPI) National Working Meeting in Bandung, Saturday (2/4).

Rida gave an example, the construction of the Supergrid is similar to the Telkom cable network which connects all parts of Indonesia through undersea cables.

“The supergrid is like what we are now connected to with Telkom cables throughout Indonesia, to any sub-district that has been connected. That is due to the existence of an underwater Telkom cable. We will also connect between islands with power cables like Telkom,” added Rida.

Rida also ensured that the construction of the Supergrid would be realized to distribute electricity from one point to another to optimize EBT power sources spread across almost all parts of Indonesia from Papua to Aceh.


“God willing, this super grid will be realized to distribute electricity from one point to another because renewable energy sources are spread throughout Indonesia, from Papua to Aceh, while those who use them are on the island of Java, so the electricity must be transported. Rida explained.

The development of the Super Grid as an EBT-based electricity distribution solution was previously announced by the Minister of Energy and Mineral Resources Arifin Tasrif at the 2022 BloombergNEF Summit entitled ‘Indonesia’s Sustainable Energy Transition Ambition’ in Nusa Dua, Bali last year.


At present, Minister Arifin emphasized the same thing that the super grid is one of the efforts to achieve the Net Zero Emissions (NZE) target in 2060 or sooner because many generators are made from EBT. It is also supported that current global issues are related to green industries that produce little or no carbon emissions.

For information, the idea of building the Nusantara Supergrid was initiated by a Professor at the School of Electrical and Informatics Engineering, Bandung Institute of Technology (ITB), the late Pekik Argo Dahono.


At that time, Pekik expressed his idea to connect the electricity network from Sumatra, Java, Kalimantan, Sulawesi, to Papua. Because Pekik sees that our NRE potential is uneven and far from demand. One of the conditions for developing EBT is transmission. So the transmission interconnection is very necessary.

Indonesia's Super Grid Becomes One Of The Keys To Clean Energy Penetration

The government plans to build an underwater power cable to connect five main areas of electricity in Indonesia or what is known as the Nusantara Supergrid Electrical Network. With the interconnection of the Supergrid power network, scattered sources of new renewable energy (EBT) can be utilized...

solarquarter.com

 

[Indos]

Indonesia renewable energy potency

1. Solar Energy : 169 thousands Megawatt
2. Hydro Power/Energy : 95 thousands Megawatt
3. Wind Energy : 68 thousands Megawatt
4. Geothermal Energy : 24 thousands Megawatt

Source :

Jokowi Ungkap Banyak Negara Antre Garap 'Harta Karun' Energi di RI

Presiden Jokowi mengungkapkan banyak investor dari berbagai negara antre untuk menggarap 'harta karun' energi di Indonesia, seperti PLTS hingga geothermal.

finance.detik.com

 

[Michael]

@Indos
Hey, bro.
Can you shed some light on some of the taboos in Indonesia?
I mean: some things that foreigners (especially Chinese) need to pay special attention to when they come to invest or live in Indonesia. For example: local business behaviour habits; local taboos .............. The impact on the locals and the reaction of the locals when foreigners unconsciously trigger these taboos ...........

For example: in Chinese custom, sticking chopsticks in a rice bowl is a very serious provocation. Depending on the relationship between the two parties something between a warning and a brawl can occur. When you eat Chinese food with Chinese people, don't do this kind of behaviour.


Three years ago, I had an opportunity to participate in a business project in Indonesia. I ended up vetoing the plan because I knew too little about Indonesia. I know that Indonesia has changed a lot now, and its relationship with China is very friendly. But I still know too little about it to make a decision.

 

[Indos]

@Indos
Hey, bro.
Can you shed some light on some of the taboos in Indonesia?
I mean: some things that foreigners (especially Chinese) need to pay special attention to when they come to invest or live in Indonesia. For example: local business behaviour habits; local taboos .............. The impact on the locals and the reaction of the locals when foreigners unconsciously trigger these taboos ...........

For example: in Chinese custom, sticking chopsticks in a rice bowl is a very serious provocation. Depending on the relationship between the two parties something between a warning and a brawl can occur. When you eat Chinese food with Chinese people, don't do this kind of behaviour.
View attachment 63720

Three years ago, I had an opportunity to participate in a business project in Indonesia. I ended up vetoing the plan because I knew too little about Indonesia. I know that Indonesia has changed a lot now, and its relationship with China is very friendly. But I still know too little about it to make a decision.

I dont think there is any taboo in Indonesia. It is pretty normal, but for foreigner who wants to do business in Indonesia, they just need to adapt with Islam related norm like allowing Hijab women to work, so no discrimination should take place or else that could be viral in social media and hurting the business.

The workers also will pray at least 2 times during the working hours. First is Dhuhur and it is not likely affecting any thing as Muslim workers will do the prayer during lunch break time. The second one is Ashar and done during the work hours.

My first job is in Sudirman business district with boss from Singapore. Singapore owned company. He complained with my prayer, so any foreing investor should consider this as well.

And also business meeting should adap with Islamic norm as well. This month for example I am invited by US technology firm to attend their event in a place in Jakarta business district, I see the scedule also consider praying time as well as the event will be held from 9 AM until around 5 PM.

 

[Michael]

I dont think there is any taboo in Indonesia. It is pretty normal, but for foreigner who wants to do business in Indonesia, they just need to adapt with Islam related norm like allowing Hijab women to work, so no discrimination should take place or else that could be viral in social media and hurting the business.

The workers also will pray at least 2 times during the working hours. First is Dhuhur and it is not likely affecting any thing as Muslim workers will do the prayer during lunch break time. The second one is Ashar and done during the work hours.

My first job is in Sudirman business district with boss from Singapore. Singapore owned company. He complained with my prayer, so any foreing investor should consider this as well.

And also business meeting should adap with Islamic norm as well. This month for example I am invited by US technology firm to attend their event in a place in Jakarta business district, I see the scedule also consider praying time as well as the event will be held from 9 AM until around 5 PM.

We know that there are many Muslim countries in the world. But they are not identical in some of their norms. Or rather, they have totally different levels of openness and tolerance.

As for the consequences of violating the taboos of Islam. In some countries it may be an admonition or a warning. Some may be fines or expulsion. Some countries it may be a prison sentence ..........

China also has many Muslims. Some of them have mixed their lives completely with the Han Chinese. This group of people usually practice their religion at home or in religious places, and their daily behaviour is no different from that of the Han Chinese. In Muslim ghettos, if any Han Chinese break Muslim taboos, they usually call the police and let the police deal with them (the police usually punish these Han Chinese with apologies, fines, and public security detentions depending on the situation, and in serious cases of intentional provocation, they are sentenced to jail). Very rarely is there a direct fight.

We know that in Muslim countries, offences against Muslim religious taboos are very serious matters. But we don't know how serious an unconscious offence can be ........... China's traditional culture is respectful of all religious beliefs. When religious activities or rituals affect our daily work and life, we usually choose to adjust our work and lifestyle, and if these effects have reached a point where they cannot be adjusted, we will stay away. This is not discrimination.

=====================================

A lot of things that you consider normal may be considered special by other groups.
Many traditional habits of others you may consider offensive.
That's a cultural difference and what I'm trying to understand

 

[Indos]

Indonesia Reports Stronger Consumer Confidence​

Jayanty Nada Shofa

September 9, 2024 | 2:28 pm


A man goes shopping in Cikutra, Bandung, on September 3, 2024. (Antara Photo/Raisan Al Farisi)

Jakarta. Bank Indonesia announced Monday that people had become more confident in the country’s economy, thus maintaining the trend of growing consumer optimism.


The central bank revealed that Indonesia’s consumer confidence index (CCI) stood at 124.4 points as of August. This marks a 1-point increase versus the 123.4 of CCI posted the previous month.

A reading of above 100 points means that Indonesian consumers are upbeat about the country’s economy, be it in its current state or its prospects in six months.

Indonesia has been keeping the CCI above the 100 mark, but the scores had dropped to 125.2 in May, and eventually down to 123.3 points in June. The country managed to recover its CCI to 123.4 in July while also keeping up the momentum until the following month.

Indonesia Reports Stronger Consumer Confidence

Indonesia managed to keep up the momentum of improving consumer confidence, the country's central bank reported.

jakartaglobe.id