Indonesia Morning News For December 28

Pertamina May Incur Losses from Premium Sales as Crude Price Hike
Reforminer Institute’s executive director Komaidi Notonegoro asks the government to review the policy of limiting the public service obligation (PSO) prices, especially for the subsidized Premium gasoline.
— Tempo

Jokowi heads to 2018 with backing of stronger Indonesian economy
Indonesia’s economy is in a stronger position as it enters 2018, bolstering President Joko Widodo as the nation gears up for elections.
— Business Times

Government maintains energy prices for Q1 2018
The Energy and Mineral Resources Ministry has announced that it will maintain the prices of electricity and certain fuel types in the first quarter of 2018, forcing state energy giants Pertamina and PLN to bear the burden of increasing oil and coal prices.
— The Jakarta Post

Indonesia Put to Death 79 Drug Dealers, Rehabilitated 1,523 Addicts in 2017
In 2017, the National Narcotics Agency, or BNN, killed 79 drug dealers in raids across the country, recorded 465,070 drug-related cases, and rehabilitated 1,523 addicts, a top official said on Wednesday (27/12).
— JakartaGlobe

Indonesian bank solves MUFG’s Southeast Asian puzzle
Mitsubishi UFJ Financial Group’s sequential takeover of Bank Danamon, Indonesia’s fifth-largest commercial bank, illustrates how the Japanese multinational plans to transform its Southeast Asian outposts into a regional empire.
— Nikkei Asian Review

Government wants other regions to construct LRT
The government has invited other regions to develop light rapid transit (LRT) projects.
— The Jakarta Post

Fitch Updates Indonesia Credit Rating, Rupiah Only Slips Slightly against Dollar
The rupiah exchange rate traded among banks in Jakarta on Wednesday (12/27/2017) morning moved slightly by six points lower to IDR13,560 compared to the previous position of IDR13,554 per dollar.
— Netral News

State-owned bank BRI to have 37-story office tower
State-Owned Enterprises Minister Rini Soemarno on Wednesday led a groundbreaking ceremony for state-owned lender Bank Rakyat Indonesia’s (BRI) office tower project, called Menara BRI Gatot Subroto, in the city’s main business district Mega Kuningan in South Jakarta.
— The Jakarta Post

Hutama Karya Secure Syndicated Bank Loan of IDR8.06 Tln for Toll Road Project
State-owned construction company Hutama Karya has obtained syndicated bank loan to develop the Bakauheni-Terbanggi Besar section of the Trans-Sumatera Toll Road network.
— Netral News

This Indonesian company turns seaweed into edible & biodegradable packaging
One potential solution to the massive plastic pollution problem could come from Evoware, which makes seaweed-based packaging that is not only 100% biodegradable, but is edible as well.
— Treehugger

Megawati Institute: Oligarchy Hampers Economic Growth
The control of the state’s wealth only by certain parties or economic oligarchies is considered to have adverse effects on the government’s efforts to spur national economic growth. Oligarchy also encourages the creation of economic inequality in society.
— Netral News

S, Korea, Indonesia Expected to Join World’s Top 10 Economies within 15 Years
According to the Centre for Economics and Business Research (CEBR) on December 26, South Korea and Indonesia are expected to join the top 10 economies of the world in or before 2032.
— Business Korea

Shares & Rupiah: Indonesia’s Jakarta Composite Index at New Record
Despite generally thin trading in Asian markets, Indonesian shares rose further in record-high territory on Wednesday (27/12) supported by a rally in commodity prices (particularly crude oil and metals prices), and the announcement that Japan’s Mitsubishi UFJ Financial Group plans to buy a majority stake in Bank Danamon Indonesia, Indonesia’s fifth-largest lender.
— Indonesia Investment

Indonesia’s Sinabung volcano erupts, no casualties
There have been no casualties as Indonesia’s Sinabung volcano in northern Sumatra province erupted again on Wednesday (Dec 27), sending hot clouds into the sky.
— Business Standard

AP II Pledges to Improve Airport Train`s Facilities
State-owned airport operator PT Angkasa Pura (AP) II promised to improve services for passengers of Soekarno-Hatta Airport train.
— Tempo

Feature photo Farhana Asnap / World Bank

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