Yesterday's economy: MSCI review to potential layoffs in automotive industry

Global index provider MSCI has acknowledged the transparency reforms announced by Indonesia’s Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI). The recognition covers improved disclosure of shareholders with ownership above 1 percent, more detailed investor classification, the introduction of a High Shareholders Concentration (HSC) framework, and a roadmap to raise the minimum free float requirement to 15 percent.

PT Rans Entertainmen Indonesia Tbk (RANS), a company owned by Raffi Ahmad and Nagita Slavina, is set to conduct an initial public offering (IPO) on the Indonesian capital market. The company has set an initial offering price range of Rp135 to Rp170 per share during the book building phase.

Permata Bank Chief Economist Josua Pardede stated that the rupiah’s depreciation should be addressed by strengthening personal financial resilience rather than making extreme asset shifts.

Energy economist Fahmy Radhi from Gadjah Mada University (UGM) predicts that non-subsidised fuel prices, such as Pertamax, will decline in July in response to falling global oil prices.

Said Iqbal, Special Advisor to the President on Employment and Workers’ Welfare, confirmed that negotiations are ongoing between labour unions and management regarding potential layoffs at two automotive component companies in East Java. Approximately 4,000 workers in Pasuruan and Mojokerto are at risk of termination due to plans to relocate production lines from Indonesia to Vietnam.