- Indonesia’s government and central bank are considering regulations to limit foreign debt exposure by corporations and banks. Indonesia’s finance minister Agus Martowardojo says it’s an effort to protect Indonesia if the rupiah weakens.
- The World Bank says Indonesia’s development is being hampered by the ‘uneven’ treatment of political economic issues. ‘There is a need for innovation on multiple fronts: new financial instruments; better metrics for measuring governance performance; a more harmonized and consistent approach to risk management; and more strategic allocations of internal resources,’ says Nivan Girishankar, the main author of the study published in the Jakarta Post.
- Indonesia will soon decide whether it will end cattle and meat imports. Bernama reports that foreign trade and other government officials will meet in October to discuss whether imports are still necessary. There are an estimated 14.8 million head of cattle in Indonesia. The importation of cattle from Australia has been a source of controversy this year, amid allegations of gross mistreatment of the livestock.
- The strike at Freeport Indonesia’s Grasberg mine continues. While some contract workers are onsite, most are still to reach a pay deal with the company.
- Indonesia is one of the most under-estimated countries in Asia according to Australia think-tank, the East Asia Forum. ‘Judging by all the vital signs, the health of the Indonesian economy, policy and society is robust — and Indonesia is ready and able to make a significant contribution to regional and global affairs. In a paper for the Forum, former Indonesian finance minister and current World Bank Managing Director, Dr Sri Mulyani Indrawati writes, ‘Investing in quality infrastructure can provide outstanding returns in terms of growth and development outcomes … [but ] … for many developing countries [like Indonesia], financing for critical infrastructure investment is inadequate’.