Indonesia is the large archipelago located between Southeast Asia and Australia. Indonesia’s GDP grew at a CAGR of 5.6% for a total of $890.67 billion at current prices in 2012. The country is recognized for its strong economic growth, prudent fiscal management, and a sound macroeconomic policy framework in recent years. Lucintel estimates the economy of Indonesia would reach $2 trillion by 2018. The country has a risk rating of BBB by different credit rating agencies.
Lucintel's study encompasses the major drivers. Indonesia has low dependence on foreign trade. The major source of domestic consumption in the country is its burgeoning middle class. This factor insulates Indonesia from being dependent on exports and become vulnerable to economic risks.
Indonesia ranks among the more stable economies of the Asia Pacific region. The country has an advantageous position in terms of its young population. The level of education plays a vital role in the development of better quality human resources in the country. In Indonesia, the national literacy rate stands at 92% and there is approximately 39% enrollment in tertiary education, which is ample and indicates the quality of higher education.
The government has changed its plan to build a new port in Cilamaya and is seeking a better location in Subang or Indramayu, West Java.
Vice President Jusuf Kalla said the government needed to build a new port but it would not be in Cilamaya.
The Vice President, who visited Cilamaya with several ministers, including Coordinating Maritime Affairs Minister Indroyono Susilo and Transportation Minister Ignasius Jonan on Thursday, said the new port would be built east of Cilamaya, either in Subang or Indramayu.
Kalla said the main reason to move the new port’s location to another regency was because waters in the area were already crowded by offshore mining activities and oil tankers transporting crude oil to Jakarta and other cities.
The government has allocated Rp 34.5 trillion (US$2.6 billion) to construct a new port, as Tanjung Priok Port is deemed too crowded.
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government has changed its plan to build a new port in Ci…
South Korean steelmaker POSCO will almost double its investment in Indonesia to $11 billion over the next five years, from $6 billion currently, Chief Economics Minister Hatta Rajasa said on Friday. The world's fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country's biggest steel producer. Earlier this year, the South Korean firm's affiliate POSCO Engineering & Construction, formed a consortium to build two 300-megawatt power plants on Indonesia's Sumatra island, worth around $1 billion. A POSCO spokesman in Seoul said the South Korean firm has yet to make detailed investment commitments in Indonesia, and noted other partners would jointly invest in any projects. Foreign direct investment in Indonesia stayed strong in the second quarter, showing the G20 member remained a magnet in a troubled global economy and that changes in mining ownership rules are not cutting i…
Inflation increased slightly in March, data from the Central
Statistics Agency, or BPS, showed on Wednesday, as prices were pushed up
by higher prices for fuel and rice and continued weakening of the
Analysts said stronger inflation would limit Indonesia’s central bank’s ability to further reduce its key interest rate. The BPS announced March’s headline inflation rate was 6.38 percent, compared with 6.29 percent a month earlier.
“This is broadly in line with our forecast and the consensus median,”
said Dian Ayu Yustina, a Jakarta-based economist with Bank Danamon
The administration of President Joko Widodo has reformed the fuel
price policy to a regulated price that can fluctuate according to the
global oil price and the exchange rate.
Looking forward to the rest of the year, analysts Wai Ho Leong and
Angela Hsieh from Barclays said the path of inflation was still benign.