Indonesian stocks suffered a dramatic 4.2 per cent tumble on Monday, amid rising concern over inflation. But that should not distract attention from the underlying strength of south-east Asia’s largest economy, writes HSBC’s Wellian Wiranto. Since the world financial crisis, Indonesia has become a mainstream destination for more and more investors – and its improved profile is reflected in discussions over the country’s possible return to investment grade.

Businesses condemned state electricity company PT PLN's decision to revoke a cap on the electricity basic tariff hike for industry starting this month, saying that such policies may hinder the development and competitiveness of the sector. Indonesian Textile Association chairman Ade Sudrajat claimed that PLN had not invited businesspeople -- particularly from his association -- to discuss the implementation of the policy or check their readiness.

TEMPO Interactive, Jakarta:The Indonesian Mining Association’s executive director, Priyo Pribadi, believes the government’s investment target in the mineral and coal sector can be improved. “The figure does not reflect the reality. Every year, there are thousands of new mines. There should be lots of new investment as well,” Priyo said last weekend. The Energy Ministry has projected investments in the mineral and coal sector in 2011 will amount to US$3.2 billion.