Banking / Investment in Indonesia
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INDONESIA, 2016/07/24
At the same time as it comes to financial management, religious views no longer seem to matter for most Indonesians, who choose lenders that can accommodate their daily needs and provide the highest investment returns.
Despite its status as the world’s major Muslim-majority country, Indonesians still favor conventional banks over those that adhere to Islamic principles.
The market share of Islamic banks in the country has remained below 5 % over recent years despite the existence of sharia banking in the country since the early 1990s.
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INDONESIA, 2016/02/18
Indonesia's central bank cut its key interest rate for a second consecutive month in February to its lowest level in two-and-a-half years.
Bank Indonesia slashed its key interest rate by a quarter point to 7 % on Thursday. In January, policymakers had cut the rate by the same size, marking the initial reduction in 11 months.
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INDONESIA, 2015/12/27
Plans by a Chinese-led private investment group to pour $5bn into a new West Java industrial park signal that the Indonesian government’s efforts to attract additional foreign direct investment (FDI) may be yielding the desired results.
In late October China Minsheng Investment (CMI) confirmed plans to construct the CMI Indonesia Industrial Park as part of Beijing’s One Belt, One Road strategy aimed at boosting connectivity and commerce between Asia and Europe.
“We welcome this project as it fits well with the Indonesian government’s aim to develop additional manufacturing industries and generate additional jobs,” Suryo Bambang Sulisto, a member of CMI’s World Advisory Council and chairman of the Indonesia Chamber of Commerce and Industry, told media in late October.
The announcement came on the heels of a recent investment promotion campaign, with Indonesia launching several FDI-related reforms aimed at sparking wider interest in a series of upcoming infrastructure mega-projects.
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INDONESIA, 2015/11/15
Private lenders PermataBank and Bank Danamon predict that their profit increase by the end of this year will remain stagnant compared to the results of the initial nine-month period.
Both lenders, the country’s seventh and sixth major banks by consolidated assets, have seen respective falls of 24 and 10 % year-on-time(yoy) in net profits to Rp 938 billion (US$69.2 million) and Rp 1.89 trillion as of September.
PermataBank president director Roy A. Arfandy said the lender actually saw its operational profit before provisions in the nine-month period grow up to 34 %, but again drop by 24 % next it hiked its loan-loss provision due to rising bad credit.
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INDONESIA, 2015/09/29
The Indonesian government on Tuesday unveiled a second batch of stimulus packages to lure investors, prop up weakening rupiah and accelerate GDP increase in the country, an official said here.
The policy focuses on the acceleration and simplification of procedure in business licensing in an industrial economic zone, Economic Chief Minister Darmin Nasution said at the National Palace.
Nasution revealed that the period needed for having a license for business in the zone is cut to three hours from eight days.
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INDONESIA, 2014/09/21
The price of investor-national dispute settlement (ISDS) procedures has been questioned by Australia and, additional recently, Indonesia. The Australian government’s controversial 2011 Trade Policy Statement — stating that Australia would not acknowledge to ISDS in its treaties — caused significant debate. In part, Australia’s policy was motivated by Philip Morris’ legal action against the government over legislation requiring the plain packaging of cigarettes.
Since again, a change of government in 2013 has meant that Australia has retreated considerably from its previous strict position. The current Abbott government has indicated it will consider the inclusion of ISDS on a case-by-case basis. While the government agreed to the inclusion of ISDS in the recent agreement with Korea, no such regime was included in the agreement with Japan.
Recently, Indonesia has indicated discontent with the current national of its investment agreements. Some in Indonesia have expressed an aversion to ISDS in particular. Before this year, the Netherlands embassy in Jakarta announced that the Indonesian government had informed the Netherlands that it intended to terminate the Netherlands–Indonesia Bilateral Investment Treaty (BIT) from 1 July 2015, which is at the same time as the BIT expires. The Netherlands embassy as well stated that the Indonesian government had mentioned it intended to terminate all of its 67 BITs.
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INDONESIA, 2013/08/04
Visiting French Foreign Minister Laurent Fabius pledged on Thursday to boost France’s investment in Indonesia amid efforts by French energy giant Total to thwart national-owned oil and gas company Pertamina’s attempt to take over its concession in the oil-and-gas-rich Mahakam block in East
Kalimantan.
Fabius, who arrived with a business delegation, held a bilateral conference with his Indonesian counterpart, Marty Natalegawa, at the latter’s office in Jakarta. Speaking next the conference, Fabius highlighted the importance of Indonesia to France, particularly in the economic sector.
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INDONESIA, 2013/05/13
People buying and selling rupiah will any minute at this time have a clearer idea of what the local currency is worth at the same time as the central bank launches a new pricing tool later this month, in a bid to stem further depreciation against the US dollar.
The mechanism, known as fixing spot rate, will help the central bank better influence the rate of the currency, one of Asia's weakest in the completed year.
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INDONESIA, 2012/12/22
Profit at the country’s top banks is poised to enjoy strong increase next year on the back of rising loan request from Indonesian consumers and diminishing operational costs.
The national-owned Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia, along with private lenders Bank Central Asia, Bank Danamon Indonesia and Bank CIMB Niaga will continue to enjoy strong increase in profit year next year, according to estimates by analysts polled by Bloomberg News.
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INDONESIA, 2012/12/22
Indonesia's central bank on Tuesday held its key interest rate at 5.75 % for the 10th straight month as inflation remained in check in Southeast Asia's major economyInflation in November eased to 4.32 % year-on-year compared to 4.61 % in October due to falling food prices.
The bank estimate inflation would be below 4.5 % at the end of the year and that in 2013 and 2014, it would be remain under control at between 3.5 % and 5.5 %.
