Thu, 15 Apr 2010
From: The Jakarta Post
By Andry Asmoro
Indonesia’s economy entered 2010 with a very bright outlook, seeing it hoping to become one of the best performing countries in the region, together with China and India.

This optimism led the government to target to reduce unemployment to 7.6 percent from 7.9 percent in 2009, which meant it would push the 2010 economy to absorb at least an additional 0.3 percent employment this year.

It is worth noting that 70 percent of the total employment in Indonesia was contributed by agriculture, manufacturing industry and hotels and restaurants. Among these three sectors, we would see manufacturing industries providing the most opportunities this year, as well as a threat from delayed infrastructure-related projects.

In the fourth quarter of 2009, manufacturing industries booked a year-on-year (y-y) growth of 4.2 percent.

This was slightly less than the nine-year average of 4.4 percent if we include the financial crises period between 2008 and 2009.

However, the y-y growth in the fourth quarter of 2009 was in fact a rebound compared to 1.3 percent in the third quarter.

In detail, the three highest growth industries were paper and printing, cement, and food and beverages. Those industries were domestic-consumption based and benefited from the large portion of private consumption and government spending in the 2009 economy.

Going forward, we expect manufacturing industries will benefit from the global economic recovery that should boost direct investment in Indonesia. A recent update from the government indicates Indonesia’s y-y economic growth in the first quarter of this year could reach 5.7 percent or from 5.4 percent in the fourth quarter of 2009. Meanwhile the Central Statistic Agency (BPS) estimates a higher figure of up to 6 percent.

The higher growth will potentially be supported by foreign investment and export performance. However, we should not forget that higher y-y economic growth in the first quarter of this year was also supported by slower economic growth in the first quarter of 2009 as the base year.

An indication of an improvement in the performance of manufacturing industries was depicted by a stronger industrial production index (IPI) since the second half of 2009. Currently, the IPI is at 131, which is much higher than the February 2009 figure of 124.

Other indications were also portrayed by an increase in imports of capital goods and primary raw materials for industry. As of February 2010, y-y import growth on capital goods jumped to 39 percent or 5.8 percent month-on-month growth compared to January. The same figure was also posted with primary raw materials imports y-y growth of 52 percent in January - higher than the 16 percent growth in December 2009.

Regarding external pressure, especially from the implementation of the ASEAN-China Free Trade Area (ACFTA), the World Bank quoted an ADB study that mentioned at least four benefits to Indonesia under the agreement. These include increased access to the third-largest consumer market in the world, increased productivity and efficiency, lower prices for the domestic market and greater protection from adverse shocks to the global economy.

Summing up, the implementation of the ACFTA would create an opportunity to widen the Chinese market as well as making raw materials cheaper.

We should also take into account the opportunity for bigger direct investment from the relocation of some Chinese companies.

Thus, now the government’s task is to maintain the momentum of manufacturing industrial growth in Indonesia at between 5 and 7 percent. The current world competitiveness index provides some evidence the government has boosted Indonesia’s rank. In 2009 Indonesia was ranked 42nd - an improvement on 50th in 2005.

However, it is worth highlighting that we are still behind our competitors in the region, including India, Korea, Malaysia and China.

The World Economic Forum (WEF) had mentioned that the biggest obstacles to conducting business in Indonesia were inefficient government bureaucracy, inadequate infrastructure, and corruption. Interestingly, Indonesia’s tax rate was among the lowest of obstacles to foreigners doing business in Indonesia.



News Search/Filter
Transaction Rates
17 Jul 18
Buy
Sell
AED1
3,883.15
3,883.15
AFN1
196.60
196.60
ALL1
132.34
132.34
AMD1
29.70
29.70
ANG1
7,734.49
7,734.49
AOA1
56.03
56.03
ARS1
521.71
521.71
AUD1
10,574.51
10,574.51
AWG1
7,968.43
7,968.43
AZN1
8,377.99
8,377.99
BAM1
8,742.76
8,742.76
BBD1
7,131.76
7,131.76
BDT1
168.87
168.87
BGN1
8,537.35
8,537.35
BHD1
37,667.55
37,667.55
BIF1
8.09
8.09
BMD1
14,263.53
14,263.53
BND1
10,470.90
10,470.90
BOB1
2,069.60
2,069.60
BRL1
3,695.88
3,695.88
BSD1
14,263.53
14,263.53
BTC1
95,692,134
95,692,134
BTN1
207.90
207.90
BWP1
1,396.81
1,396.81
BYN1
7,231.56
7,231.56
BZD1
7,098.55
7,098.55
CAD1
10,857.11
10,857.11
CDF1
8.84
8.84
CHF1
14,307.83
14,307.83
CLF1
601,836.98
601,836.98
CLP1
21.94
21.94
CNH1
2,128.76
2,128.76
CNY1
2,131.81
2,131.81
COP1
4.98
4.98
CRC1
25.16
25.16
CUC1
14,263.53
14,263.53
CUP1
559.35
559.35
CVE1
150.85
150.85
CZK1
645.41
645.41
DJF1
80.10
80.10
DKK1
2,240.81
2,240.81
DOP1
287.29
287.29
DZD1
121.40
121.40
EGP1
797.04
797.04
ERN1
948.38
948.38
ETB1
516.48
516.48
EUR1
16,701.56
16,701.56
FJD1
6,826.28
6,826.28
FKP1
18,879.89
18,879.89
GBP1
18,879.89
18,879.89
GEL1
5,826.37
5,826.37
GGP1
18,879.89
18,879.89
GHS1
2,981.74
2,981.74
GIP1
18,879.89
18,879.89
GMD1
298.27
298.27
GNF1
1.58
1.58
GTQ1
1,904.28
1,904.28
GYD1
67.98
67.98
HKD1
1,817.31
1,817.31
HNL1
593.07
593.07
HRK1
2,259.42
2,259.42
HTG1
211.46
211.46
HUF1
51.69
51.69
IDR1
1.00
1.00
ILS1
3,934.61
3,934.61
IMP1
18,879.89
18,879.89
INR1
208.26
208.26
IQD1
11.97
11.97
IRR1
0.32
0.32
ISK1
133.62
133.62
JEP1
18,879.89
18,879.89
JMD1
109.06
109.06
JOD1
20,103.56
20,103.56
JPY1
126.91
126.91
KES1
142.06
142.06
KGS1
208.91
208.91
KHR1
3.52
3.52
KMF1
33.93
33.93
KPW1
15.84
15.84
KRW1
12.63
12.63
KWD1
47,073.60
47,073.60
KYD1
17,124.79
17,124.79
KZT1
41.65
41.65
LAK1
1.68
1.68
LBP1
9.43
9.43
LKR1
89.25
89.25
LRD1
88.95
88.95
LSL1
1,080.16
1,080.16
LYD1
10,380.94
10,380.94
MAD1
1,508.29
1,508.29
MDL1
854.73
854.73
MGA1
4.20
4.20
MKD1
271.19
271.19
MMK1
10.01
10.01
MNT1
5.84
5.84
MOP1
1,764.89
1,764.89
MRO1
40.12
40.12
MRU1
398.31
398.31
MUR1
415.87
415.87
MVR1
925.60
925.60
MWK1
19.63
19.63
MXN1
757.18
757.18
MYR1
3,537.67
3,537.67
MZN1
242.16
242.16
NAD1
1,077.30
1,077.30
NGN1
39.51
39.51
NIO1
450.66
450.66
NOK1
1,760.03
1,760.03
NPR1
129.93
129.93
NZD1
9,677.58
9,677.58
OMR1
37,052.86
37,052.86
PAB1
14,263.53
14,263.53
PEN1
4,363.80
4,363.80
PGK1
4,334.81
4,334.81
PHP1
266.73
266.73
PKR1
117.38
117.38
PLN1
3,880.93
3,880.93
PYG1
2.49
2.49
QAR1
3,917.47
3,917.47
RON1
3,584.70
3,584.70
RSD1
141.53
141.53
RUB1
228.85
228.85
RWF1
16.31
16.31
SAR1
3,803.20
3,803.20
SBD1
1,813.00
1,813.00
SCR1
1,053.43
1,053.43
SDG1
792.43
792.43
SEK1
1,617.24
1,617.24
SGD1
10,474.27
10,474.27
SHP1
18,879.89
18,879.89
SLL1
2.26
2.26
SOS1
24.66
24.66
SRD1
1,912.51
1,912.51
SSP1
109.49
109.49
STD1
0.67
0.67
STN1
675.35
675.35
SVC1
1,630.55
1,630.55
SYP1
27.69
27.69
SZL1
1,078.52
1,078.52
THB1
428.71
428.71
TJS1
1,514.59
1,514.59
TMT1
4,063.73
4,063.73
TND1
5,426.90
5,426.90
TOP1
6,181.14
6,181.14
TRY1
2,938.90
2,938.90
TTD1
2,116.94
2,116.94
TWD1
467.77
467.77
TZS1
6.25
6.25
UAH1
544.25
544.25
UGX1
3.87
3.87
USD1
14,263.53
14,263.53
UYU1
454.74
454.74
UZS1
1.82
1.82
VEF1
0.17
0.17
VND1
0.62
0.62
VUV1
131.40
131.40
WST1
5,518.02
5,518.02
XAF1
25.46
25.46
XAG1
225,347.35
225,347.35
XAU1
17,698,232.57
17,698,232.57
XCD1
5,277.80
5,277.80
XDR1
20,078.65
20,078.65
XOF1
25.46
25.46
XPD1
13,126,759.23
13,126,759.23
XPF1
139.95
139.95
XPT1
11,781,620.42
11,781,620.42
YER1
56.97
56.97
ZAR1
1,078.91
1,078.91
ZMW1
1,434.61
1,434.61
ZWL1
44.24
44.24
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services