Market

Indonesia’s export in September declined 5.8% month-on-month, but expanded 6.44% year-on-year. Higher volume and price of some key commodities contributed to the strong year-on-year growth. 

Sinarmas Group’s Widjaja Family acquired some properties in London (UK), while RGE’s Sukanto Tanoto purchased high-profile assets in Germany. This time, Musim Mas Group’s Karim Family acquired a property in Tokyo, Japan.

With a population of around 280 million people, Indonesia will continue to attract investments in healthcare sector. Despite downfall of middle-income group in the past ten years, improvement in the universail healthcare program (BPJS Kesehatan) and potential collaboration with private insurance facilities are seen main stimulus for growth in the sector.

Housing backlog of 12.7 million units hasn’t changed much in the past ten years of Jokowi administration despite the outgoing president’s one million homes program. President elect Prabowo Subianto is now coming with a more ambitious program: three million homes per annum. 

China’s biggest fruit retailer, Shenzen Pagoda Industrial continues to grow. Recently, Pagoda has announced its plans to enter the Indonesian market by opening its first store with a local partner before the end of this year. This is interesting to watch given big number of small traditional retailers involved in the business here.

Policy coordination, especially in the economic sectors, might be a bigger issue in the Prabowo-Gibran cabinet with the planned addition of coordinating ministries. We’ve seen such issues in Jokowi administrations (2014-2024) but some have eventually been ‘solved’ with the existence of super minister Luhut Binsar Pandjaitan (LBP). 

Indonesian consumers need to wait longer to buy the new iPhone 16 because the product is not allowed to enter the market yet. Apple is deemed not comply to its investment commitment in the country. 

The new capital city (IKN) Nusantara will only get around US$1 billion from the State Budget 2025, the first full year of Prabowo presidency. That means by next year about 20% of the total investment needed (Rp400 trillion), which is part of the State’s portion, has been fully disbursed. Rest assured, given lack of interest from private sector to finance the balance (80% or Rp320 trillion), Nusantara might be abandoned. 

Escalating tensions in the Middle East is clearly not good news for airliners, which have just recovered from the long Covid-19 pandemic. Fuel, the single largest cost component, might rise again, weighing faster recovery of tourism industry globally.

The devil is in the detail! Hashim Djojohadikusumo, brother of president elect Prabowo Subianto, said his brother will kick off development of 3 million homes per annum. Singapore’s Housing Development Board (HDB) and Surbana Jurong Ltd, subsidiary of Temasek Holdings, will be involved in the project as ‘advisors and consultants’.