A surge in food imports caused the highest trade deficit of President Joko’s government. This could have a knock-on effect on the weakening rupiah and economic growth.
The bombings will not have a major impact on the capital market and direct investment, but threaten the tourism sector with the declining number of foreign tourist arrivals.
Investment realisation from China in Indonesia is mostly coming through Singapore. Many projects described as “Investment from China” are more appropriate to be categorized as debt.
The government is beginning to realise the potential pressure from high oil prices on the State Budget (APBN) 2018.
Economic growth in the first quarter of 2018 was below expectations. Household consumption, the main driver of the economy, is predicted to go faster in the next quarters.
Inflation was low in April 2018, but the combination of high world oil prices and the weakening rupiah could hoist imported inflation due to fuel prices.
Jokowi reveals his efforts to reach out to PKS and Prabowo Subianto. Despite his rising electability rate, Jokowi still wants to expand his support base for the 2019 election.
The Ministry of State-Owned Enterprise is restructuring and reshuffling the boards of directors of several state companies, particularly construction firms and strategic enterprises.