Vinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo Slider
Friday, 15 December 2017

IBD

We intensively analyze major industries in Indonesia throughout
our premium articles and in-depth report for those who seek details information.

Read More

  IMS

sample

We understand how important market research is as an assessment tool to enter the market, we realize how important to provide only valid and reliable data.

Read More

  IBS

sample

If you are looking for business partner as a part of marketing strategy to expand your market into Indonesia, we are more than capable to give a hand.

Read More

  ISS

sample

Known as the “the lost Atlantis”, Indonesia has become the main supplier of several natural resources. We provide details report of the supplier

Read More

Visitors Counter

mod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_counter
mod_vvisit_counterToday269
mod_vvisit_counterYesterday282
mod_vvisit_counterThis week1457
mod_vvisit_counterLast week1951
mod_vvisit_counterThis month3751
mod_vvisit_counterLast month6547
mod_vvisit_counterAll days418087

Online Now: 9
Your IP: 54.227.51.103
,
Today: December 15, 2017

Indonesia Trade News Official Blog

 

An official Invisindo's blog

 

Balance of Trade and The Curse of Import

 
Trade Deficit (Hit the Record Breaking of All Time)
 
In the first half of 2013, Indonesia faced serious deficit that even hit the record breaking of USD 5.65 billion. Cumulatively from January - June 2013, total exports from Indonesia were USD 106.18 billion or declined 6.07% compared to same period in 2012. For non oil & gas sector, total exports from Indonesia were USD 87.57 billion, decline 2.66% compared to same period in 2012. 
 
On the other side, import products into Indonesia has become a nightmare to Indonesia's balance of trade. Total value of USD 17.42 billion from worldwide, rose 11.4% if compared to June 2013 and 6.5% compared to same period in 2012. Until July 2013, three main export destinations for non oil & gas products known as China (USD 1.69 billion), Japan (USD 1.39 billion) and USA (USD 1.49 billion), these three countries contributed 35.57% to Indonesia's export of non oil and gas.
 
Indonesia is still luckily enjoying economic growth of 5.81% until second quarter of 2013, where mainly manufacturing, trading, tourism, logistics and telecommunication seem to be the main backbone to this positive growth, whilst mining industry remains stuck in the dark age over the last two years. 
 
Source: Indonesia's Statistics

 
Indonesia's economic is driven by local consumption, product export and investment
In terms of growth rate of expenditure, public consumption, investment and export of product and services set as the main driver to Indonesia's economic growth rate totaling of 5.81%. Despite of the volatility of Rupiah to other foreign currencies including USD which also caused huge withdrawal of cash from the stock market and slumped the stock index to below 4,100.  
 
Source: Indonesia's Statistics
 
Contribution of local consumption itself was 48% to economy growth. In sense of massive population of 245 million people, Indonesia's economy is highly dependent with local consumption and that seem to be the most logic reasons to say that the raise of middle income people would contribute even higher growth in the future. 
 
Import Issues
When the Indonesia's government decided to raise the subsidized fuel price from USD 0.45 / liter to USD 0.65 / liter, it was expected the volume consumption could be decreased, yet in the other way around, fuel import in July 2013 rose 17.17% compared to June 2013 or equivalent to USD 4.14 billion. 
 
Along with the US Federal Bank's policy that caused serious impact in developing countries especially country like India, Thailand and Indonesia where each central bank had to increase the rate as part of the country's monetary policies and is expected to reduce volatility of the stock market. 
 
With total trade deficit of USD 5.65 billion, Indonesia's government was overwhelming with the situation in order to overcome the trade deficit. Cumulatively from January - July 2013, total imports into Indonesia's market were amounting USD 111.83 billion, while total exports for the same period were amounting USD 106.18 billion. 
 
 
Source: Indonesia's Statistics
 
For non oil & gas, export from Indonesia remains high, where commodities such mineral fuel, machinery, rubber based products and other mining products such as metal, tin, steel as well as fertilizer led the Indonesia's top 10 exported products. For import, mechanical and electrical machinery / equipment including mobile phone, steel, motor vehicle, plastic, organic chemicals and others led the Indonesia's top 10 imported products. 
 
Source: Indonesia's Statistics

Hedonism and Consumerism
As previously mentioned, the Indonesia's mid power consumer group totaling 45 million people play an important role to Indonesia's economy. And not by surprise to say that Jakarta as a capital of Indonesia has more than 170 shopping malls which is the biggest in the world if compared to other cities. Lifestyle and purchasing power have somehow driven the Indonesia's consumer to adopt consumerism as a lifestyle. 

This credo has become a strong point especially for retail market in Indonesia. Indonesia's statistics recorded that import of cellular phone represent the largest import of non oil & gas products amounting USD 1.2 billion during period January - June 2013. Compared to last year in 2012, total import value of cellular phone was USD 2.6 billion. 

No wonder if Indonesia's targeted as the most emerging nations in South East Asia, not only by total population of 245 million people, yet the rise of mid power consumer groups totaling 45 million people and would hit 135 million people by 2030 seem to be the main reason to global vendors. 

As the global trend of having low cost car is trending, Indonesia government, endorsed through Government's Regulation No. 41 Year 2013 pertaining Low Cost Green Car (LCGC) and Low Emission Program has officially signed by Indonesia's president. To stimulate the investors from automotive sector, an incentive was given which exempted this product from luxury tax (PPnBm). 

Source: MobilMurahOke.com 


Popular known as cheap car which is offered with the price of USD 7,500 -  USD 12,000, car producers are targeting medium class group. One of the concept of LCGC is the requirement of having fuel saving consumption which require at least 20km per liter. Despite of having renewable energy as the most ideal concept of having a green car such as gas or electricity car, still car producers have met at least with the criteria of having low cost green car concept. 

This LCGC would consume fossil fuel just like "regular" cars and would enjoy fuel subsidized by the government. Pro and Contrast of this program have become a trending topic for the last few days, some say buyers of this cars would still come from existing car owner, others complained that these cars will cause nothing but traffic only and lastly, the local government of Jakarta for sure will overcome the impact of this LCGC through implementation of ERP system, odd and even plate system and for sure raising the parking fee. In the end, local government's effort to drive and persuade public to utilize public transportation would be questioned again the effectiveness to reduce traffic congestion. 

Further information about trade news and information in Indonesia, please visit www.invisindo.com regularly. 

Add comment


Security code
Refresh

JAKARTA
--- °C
Weather details

IN COLLABORATION WITH :

Aceh Bali Bangka Belitung Banten Bengkulu Gorontalo

Jakarta Jambi Jawa Barat Jawa Tengah Jawa Timur Kalimantan Barat

Kalimantan Selatan Kalimantan Tengah Kalimantan Timur Kepulauan Riau Lampung Maluku

Maluku Utara NTB NTT Papua Papua Barat Riau

Sulawesi Barat Sulawesi Selatan Sulawesi Tengah Sulawesi Tenggara Sulawesi Utara Sumatera Barat

Sumatera Selatan SumateraUtara Yogyakarta

Invisindo Commercial Newsletter

sample

We work closely with industries to monitor the development inside. That way, we are more than capable to provide on sight information

Read more

In Depth Studies

sample

When it goes deep, there are more to see. We believe that in-depth report provide your need.

Read More

Investment Desk

sample

Blessed with abundant resources, Indonesia is one of the must countries to consider, supported with competitive labor rate, skillful worker as well as the 4thmost populous countries in the world.

Read More

Indonesia sets to shift to GMT +8, How Effective would it be

Effective - 78.8%
Not Effective - 10.6%
No Idea - 10.6%

Total votes: 66
The voting for this poll has ended on: 29 Jun 2012 - 01:33

Support Online

Indonesia Trade News Official Blog

Written By admin2 on Monday, 30 September 2013 23:03

 mentioned (http://www.indonesiatradenews.blogspot.com/2013/07/retail-industry-rise-of-mid-power.html), the Indonesia's mid power consumer group totaling 45 million people play an important role to Indonesia's economy. And not by surprise to say that Jakarta as a capital...

Zero Growth Policy On Indonesia's Military Defense Equipment

Written By admin2 on Friday, 24 May 2013 02:47

Indonesia sets to become a production center for Primary Weapon Defense System (Alutsista), Indonesian Defense Minister, Purnomo Yusgiantoro in his discussion during Executive Business Breakfast Meeting explained Indonesia aims to...

Wine, A Lucrative Business to Invest

Written By admin2 on Monday, 22 April 2013 02:41

Introduction to Wine Industry in Indonesia   Global wine trend shifting to AsiaRemarkably ever since a decade ago, the popularity of wine has been increasing in Asian countries like China, Singapore, and...

The Curse of Being Natural Resources Country

Written By admin2 on Friday, 01 March 2013 02:20

Indonesia is endowed with abundant "unlimited" of natural resources, as the largest archipelagos in the world and according to Professor Arysio Santos (http://www.atlan.org%20), Indonesia is the most awaiting "lost Atlantis"....

Jakarta Hits For Mass Transit System in 2015

Written By admin2 on Thursday, 14 February 2013 05:17

Several mega projects are likely to be completed within few years and among these projects are infrastructures related such as Sunda Strait Bridge, Bojonegara Port, Kalibaru, expansion port of Tanjung...

2013, Revival of Commodities Price

Written By admin2 on Friday, 04 January 2013 02:15

Main commodities price of mining and agricultural are predicted to recover in 2013 following the strong indication of US economic recovery. The increase of commodities price is likely to boost...

Internet Users in Indonesia Hit 62.9 Million

Written By admin2 on Friday, 02 November 2012 02:10

Last year of 2011, internet users in Indonesia were 55 million. These users are classified as mobile internet, PC, smart phone, tablet and others. At the end of first half...

Progress of Mega Projects, a Sunda Strait Bridge

Written By admin2 on Wednesday, 31 October 2012 07:47

Exoticism of Banten Province seem to keep glowing in the midst of Europe economic crisis. Hundreds of investors have committed their investment plan into this province. One of the success...

Deceleration of Economic Infrastructure

Written By admin2 on Monday, 22 April 2013 05:34

Indonesian Government plans to adjust subsidized fuel for private vehicle (four wheels) owners have been debated for more than few weeks. Implementation on 2 subsidized fuel may not create significant impact for the acceleration of Indonesian economy. In the mid of 2011, Indonesian government through BAPPENAS (National Development Planning Board)...

MP3EI Groundbreaking Projects Start This Year

Written By admin2 on Wednesday, 16 January 2013 04:21

Indonesian Government is likely to accelerate 82 projects of MP3EI (Indonesian Economic Acceleration Master Plan) in 2013 worth IDR 143.08 trillion out of total projects amounting IDR 545.76 trillion. According to Wahyu Utomo, Deputy Assistant of Regional Development and Infrastructure from Ministry of Finance said these 82 projects are likely...

Developing Indonesia Through PPP and MP3EI Projects in 2013

Written By admin2 on Wednesday, 09 January 2013 03:08

At least 58 infrastructure projects are likely set for PPP (Public Private Partnership) scheme amounting USD 51 billion. Water supply has the most in-hand projects with 18 projects, followed by toll road with 14 projects and others. While in case of priority project, total of 26 projects consist of airport,...

Hotel, a Lucrative Sector to Invest

Written By admin2 on Monday, 07 January 2013 01:24

Slowly but sure, inflow investment to Indonesia is no longer dominated by "used to be" prominent sectors such as mining, plantation and manufacture. Yet, it has been shifting to services industries such as Hotel and Restaurant. BKPM, an Indonesian Investment Coordinating Board recorded investment realization on Hotel have gone nearly...

The Golden Age of Investment

Written By admin2 on Tuesday, 23 October 2012 02:46

Despite of slump trend of ICP (Indonesian Coal Price) and world's coal price index (CPI), mining investment remains promising and prospective in Indonesia. Investment realization in mining industries reach IDR 37 trillion during period January - September 2012. Chemical and pharmaceutical industry rank as the second largest investment with IDR...

Indonesia Offers Five Mega Scale Projects to Japan

Written By admin2 on Tuesday, 09 October 2012 07:50

Indonesian government through the National Development Planning Board (Bappenas) is aiming Japanese investor to finance five mega scale infrastructure projects. These five projects are inclusive into flagship projects through the MP3EI scheme (Indonesia's Economic Master Plan). Projects include industries such as sewerage at Jakarta, expansion of Soekarno Hatta International Airport,...

Realization of Investment Worth IDR 290 Trillion

Written By admin2 on Friday, 31 August 2012 07:28

Realization of investment in the first half of 2012 has shown tremendous growth with more than 50% compared to same period in 2011. Total of USD 29 billion has been implemented into construction for both local and global investors. Indonesia government through investment coordinating board ministry (BKPM) is processing seven (7)...

Foxconn Eyes for Indonesia's Electronic Market

Written By admin2 on Tuesday, 21 August 2012 17:11

The world's largest employer and electronic producers Foxconn eyes for Indonesia's electronic market. With more than 259 million people, Indonesia is lucrative for electronic's industry both local and global. Import on electronic products and components are relatively high with more than 80%, local electronic assemblers have large dependency on import...

Matahari to Invest IDR 1 Trillion This Year

Written By admin2 on Monday, 09 April 2012 07:10

Entering the Year of Water's Dragon, more and more companies are expanding their business, including PT. Matahari as one of the largest retailers in Indonesia. About 17 new outlets of supermarket and 17 outlets of health and beauty are likely to be done within this year. The budget has included...

Tiki JNE is targeting IDR 1 trillion for company's sales

Written By admin2 on Monday, 02 April 2012 04:39

Prospect of logistics business in Indonesia remains prospective along with the implementation of National Logistics System. Chairman of ALI (Indonesian Logistic Association), Mr. Zaldi Masita explained that logistics business in Indonesia is very promising considers Indonesia as the most emerging nation in South East Asia has the capability to support...

Importation on Horticultural Products Limited to Certain Ports Only

Written By admin2 on Thursday, 23 August 2012 01:31

Preface:In 2012, the Indonesian government had decided to impose restriction in importing horticultural products. This restriction is likely to be imposed through several ports and airports. Previously imports on horticultural...

Government Postpones The Enactment on Provision for Importing Horticulture Products

Written By admin2 on Tuesday, 19 June 2012 05:00

Indonesian government has finally decided to postpone the enactment on provision for importing horticulture product that was formerly to be effective on June 15, 2012 and now with the delay,...

Indonesia's Government to Heighten Import

Written By admin2 on Tuesday, 05 June 2012 05:44

During the first quarter of 2011, import of capital goods and raw materials rose 16.2% in parallel with the growth of foreign direct investment into Indonesia. To overcome flooding of...

New API (Importer Identification Number) is Needed Effective on January 1st, 2013

Written By admin2 on Wednesday, 16 May 2012 09:09

To import product legally from overseas for both producer and trader, Indonesia's government obliges all parties to have API (Importer Identification Number), API-P is for producer and API-U is for...

Government to Set Export Quota on Mineral Export

Written By admin2 on Wednesday, 16 May 2012 01:26

Indonesian government is likely to set quota on mineral export, maximum 25% of the export realization in 2009 / 2010 is allowed until new policy takes place for the year...

Cellular's Importer "must" Gain Producer's License

Written By admin2 on Monday, 14 May 2012 03:47

To overcome illegal cellular products in Indonesia, both Depkominfo (Ministry of Communication and Information) and Kemendag (Ministry of Trade) are likely to impose new license for current import system of...

Mining Companies Are Still Allowed to Export Raw Materials

Written By admin2 on Tuesday, 01 May 2012 04:58

The new government regulation no 24 year 2012 has automatically amended the previous regulation no 23 year 2010 regarding implementation of mineral and coal mining. Through that regulation, government has...

FDI Investment is Directed to High Tech

Written By admin2 on Wednesday, 18 April 2012 03:08

The Indonesian Government is trying to shift the trend of electronic industry to high tech through the incentive scheme and disincentive. Directorate General of High Tech Base Superior Industry, Budi...