Indonesian economic growth has been marked by the rapid growth of its services sector, as indicated in the growth of its non-tradable sectors. This sector, including trade, services, finance, transport, communication and construction, has been growing at 8 percent each year for several years, which is higher than the overall GDP growth.

Banks will remain reluctant to lend to the labor-intensive manufacturing sector, particularly the textile industry, due to a lack of competitiveness, a latest survey by Bank Indonesia (BI) has revealed. Banks still consider foreign demand for Indonesian textiles to be weak, while domestic local textile products are facing stiff competition with foreign products, which will restrain the banks from making loans in the second quarter this year, the survey said.

Trade Minister Mari Elka Pangestus has insisted the implementation of the ASEAN-China Free Trade Area (ACFTA) will benefit Indonesia in the long term. The minister said that in order to minimize negative impacts of the free trade agreement, the government would implement a program to help local industries to compete better with cheaper Chinese products expected to flood the country.

Jakarta (ANTARA News) - In its first-ever effort to attract investment to develop its marine-resource-rich territory, Maluku`s provincial administration is to stage a "Maluku Investment Day." The event will take place in Jakarta on April 15-16 and is expected to be attended by around 150 entrepreneurs.

The rupiah traded at its highest level since July 2007 on Monday as foreign investors continued to snap up the nation’s financial assets, leading some Indonesian exporters to express concerns about the currency’s strength. The rupiah touched 8,997 versus the dollar in morning trade before weakening to 9,014 by the stock market close. It rose along with international markets on news that Greece’s debt crisis was easing, making riskier assets more attractive.

PT Sampoerna Agro, the palm oil plantation company owned by the Sampoerna family, said on Monday that in the long term it might convert sago producer PT National Sago Prima into a biofuels company. Sampoerna’s purchase of 91.85 percent of National Sago Prima for $12 million last February, through its subsidiary PT Sampoerna Bio Fuels, was revealed in its annual report to the Indonesian Stock Exchange (IDX) earlier this month.

As the economy continues to pick up steam, motorcycle sales are on the rise and the competition between financing companies for a share of this lucrative market is intensifying. The Indonesian Motorcycle Industry Association (AISI) is forecasting 6.6 million new motorcycles will be bought this year, up from 5.8 million in 2008.

An Australian bean called lupin can potentially be used as a cheaper substitute for soybean in the production of tempeh, but more research is needed to produce yeast suitable for it, according to a visiting Australian minister. “Presently, lupin can be used up to 30 percent in making tempeh. More work should be done to facilitate hundred percent lupin content in tempeh.