Indonesia and Singapore have signed an agreement for swap and repo transactions between Bank Indonesia and the Monetary Authority of Singapore, totaling US$ 10 billion. This was announced by Indonesian President Joko Widodo and Singaporean Prime Minister Lee Hsien Loong after signing three MoUs. Amid global financial market uncertainty, both leaders agreed to strengthen regional and bilateral cooperation to enhance monetary and financial stability. Details of the cooperation will be further elaborated by the central banks.

Indonesia and Singapore have signed an agreement for swap and repo transactions between Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS), amounting to US$ 10 billion. Announced by President Joko Widodo and Prime Minister Lee Hsien Loong, this cooperation aims to address global financial market uncertainties. The agreement includes local currency swaps and US dollar repos to support financial stability in ASEAN and globally.

Indonesia and Singapore signed four memorandums of understanding (MoUs) in addition to a bilateral investment treaty (BIT) in Bali. The agreements cover cooperation in Industry 4.0, tourism, fintech, and financial technology education. Key stakeholders include Enterprise Singapore, Kementerian Perindustrian Indonesia, Pelindo III, Star Cruises, Otoritas Jasa Keuangan Indonesia, Otoritas Moneter Singapura, Singapore Ngee Ann Polytechnic, and Direktorat Jenderal Riset, Teknologi, dan Pendidikan Tinggi Republik Indonesia. The signing was witnessed by Prime Minister Lee Hsien Loong and President Joko Widodo.

Bank Indonesia (BI) projects the current account deficit (CAD) for this year to be 2.9% of GDP, which is considered safe as it is below 3%. Governor Perry Warjiyo highlighted measures taken by both BI and the government to manage the CAD, including mandatory B20 to reduce crude oil imports, increasing luxury goods import taxes, and boosting foreign exchange from the tourism sector. BI has also raised the benchmark interest rate by 150 basis points to 5.75% to address global pressures, despite controlled domestic inflation.

The Ministry of Finance will start insuring state assets next year to anticipate natural disasters. Vice President Jusuf Kalla highlighted the current lack of fiscal risk guarantees for state assets, which burdens the state budget when damages occur. The government plans to identify all natural disaster risks and develop the best fiscal mechanisms and financial instruments to support the most effective and rapid rehabilitation.

The Indonesian Ministry of Finance is planning to expand the 0% value-added tax (VAT) policy to nine types of service exports, up from the previous three, aiming for implementation by the end of the year. The policy expansion is being coordinated with the Fiscal Policy Agency (BKF), and addresses technical issues such as double taxation in the service sector. Yustinus Prastowo from the Center for Indonesia Taxation Analysis suggests that the government should apply VAT based on the destination principle, where VAT is charged in the country utilizing the service, to avoid double taxation. The expansion is seen as a potential solution to Indonesia's current account deficit and payment balance issues, with the aim of boosting service exports.

The Directorate General of Taxes in Indonesia is revising the tax provisions on interest from Export Proceeds Deposits (DHE) due to the lack of popularity of government-offered incentives among exporters. The main issue is the banks' reluctance to ensure that the funds are indeed export proceeds, fearing penalties from the tax authority. Anne Patricia Sutanto of PT Pan Brothers Tbk suggests that the banking issue needs to be addressed first for optimal implementation. Exporters also find the requirement to place DHE in the same bank as where it was received to be inflexible. Industry leaders like Benny Soetrisno and Ade Sudrajat are not well-informed about the incentives, which vary depending on the currency and duration of the deposit, offering significant tax reductions for longer deposits.

The Directorate General of Taxes (Ditjen Pajak) in Indonesia plans to remove the requirement for export proceeds (DHE) to be placed in the same bank where they were received, as this rule has been burdensome for businesses. The current regulation, outlined in the Minister of Finance Regulation (PMK) 26/2016, mandates that DHE deposits must be placed in the same bank to benefit from reduced tax rates. The proposed change aims to provide more flexibility for exporters, although the government is still reviewing the specifics of the new policy. Business representatives, such as Anne Patricia Sutanto from PT Pan Brothers Tbk, have expressed that the existing rule limits their flexibility and poses challenges for banks in verifying export proceeds.

The Indonesian government is formulating a new policy for final income tax (PPh) on interest from government and private bonds, aiming for a swift execution. The Directorate General of Taxes, in collaboration with the Ministry of Finance and the Fiscal Policy Agency, is reviewing this policy. The review includes potential incentives for export earnings (DHE) deposited in foreign currency or rupiah. Current regulations set varying tax rates based on the duration and currency of the deposits, with significant reductions for longer-term deposits.

The Indonesian government is considering a new policy to potentially reduce the final income tax on government bond interest to zero percent. This move aims to influence bond yields, which have risen above 8% due to global financial market uncertainties. The Ministry of Finance is revisiting a 2016 proposal to eliminate this tax, which could make government bonds more attractive to investors but reduce direct tax revenue. Discussions are ongoing, comparing tax practices in other countries and considering the impact on different types of bondholders. Experts suggest that lower taxes could incentivize investment in long-term bonds.

China's central bank governor, Yi Gang, emphasized the need for constructive solutions to the trade tensions with the United States, highlighting the negative impact on global growth and financial market uncertainty. He agreed with the IMF's predictions about the adverse effects of trade uncertainty on the global economy. Yi Gang also mentioned China's plans to further reform and open its economy while enhancing intellectual property rights protection. The trade conflict has led to mutual tariff increases between the US and China, raising concerns about broader economic repercussions.

Prime Minister Lee Hsien Loong of Singapore emphasized the need to address the development gap within ASEAN through collective international cooperation. He highlighted the importance of aligning economic goals with sustainable development agendas to benefit ASEAN citizens. Singapore plans to enhance its technical assistance centers in Cambodia, Vietnam, and Laos, and has established Infrastructure Asia to facilitate infrastructure projects across ASEAN. Additionally, the ASEAN Smart Cities Network aims to create sustainable and livable cities through innovative solutions. Lee reiterated the importance of learning from each other’s experiences to achieve sustainable development goals.

The article discusses the complexities and dynamics of Indonesia's electoral process, highlighting the rise and fall of various political parties in the 2019 elections. The Hanura Party failed to pass the parliamentary threshold due to internal disputes, while the United Development Party (PPP) suffered from poor election results partly due to a corruption case involving its chairman. In contrast, the NasDem Party saw success through strategic planning and hard work. Golkar Party overcame negative speculations with effective resource allocation, and the Indonesian Democratic Party of Struggle (PDI-P) maintained its strong position through solid leadership and party structure. The article also provides historical context on the evolution of political parties in Indonesia.

The Islamic Development Bank (IDB) and Bank Indonesia (BI) launched the Waqf Core Principles, a set of 29 international standards for waqf management, during the IMF-WB Annual Meeting in Bali. These principles cover legal regulation, good governance, risk management, supervision, and financial integrity, aiming to ensure sustainable and secure waqf management. The initiative supports the Sustainable Development Goals (SDGs) and aims to build public trust in the proper allocation of waqf resources.

At the 38th meeting in Bali, IMF Steering Committee members agreed to refrain from competitive currency devaluations and targeting exchange rates for competitive purposes. They emphasized the importance of free, fair, and mutually beneficial trade and investment as key drivers for growth and job creation. The members also agreed to enhance dialogue on trade and strengthen the WTO's capacity to handle current and future situations, reaffirming the conclusions of the G-20 Hamburg Summit on trade, which opposed protectionism and promoted fair trade practices in line with WTO rules.

IMF members have yet to reach an agreement on representative quotas between emerging markets and developed countries. Juda Agung, IMF Executive Director, highlighted that emerging markets like India, Brazil, and Indonesia are underrepresented in the IMF due to the current quota system based on the size of economies. The IMF aims to adjust these quotas to better reflect the economic contributions of these countries. The issue remains unresolved, with a target to finalize the agreement by the next Spring Annual Meeting.

World leaders at the IMF-World Bank annual meeting in Bali called for an end to the trade war initiated by the United States and China, citing its detrimental effects on the global economy. IMF Managing Director Christine Lagarde warned that trade tensions could reduce global GDP by 1% by 2019. Indonesian President Joko Widodo emphasized that both winners and losers in the trade war would face serious issues. The G20 meeting also highlighted the need for dialogue, but experts like Enny Sri Hartati from Indef argued that mere calls for an end to the trade war are insufficient without concrete actions. The ongoing trade war has already impacted emerging markets, including Indonesia, which has seen a slowdown in export growth.

President Joko Widodo delivered a captivating speech at the IMF-World Bank annual meeting in Nusa Dua, Bali, drawing parallels between the current global economic rivalry and the TV series Game of Thrones. Special Staff Johan Budi confirmed that the idea for the speech came from Jokowi himself, aiming to highlight the futility of economic rivalries that could lead to global destruction. The speech received widespread praise and went viral on social media.

The G20 group has called for the immediate resolution of trade tensions among its members, which have been exacerbated by the US's protectionist policies under President Donald Trump. Nicolas Dujovne, Argentina's Finance Minister and G20 chair, emphasized the need for direct resolution among the involved parties, while highlighting the G20's role in facilitating discussions. The article notes the impact of US policies on long-time allies such as the European Union, Canada, and Mexico, and the retaliatory measures taken by various countries.

President Joko Widodo, in his speech at the IMF-WBG Annual Meetings 2018 in Bali, likened the current global economic pressures to the impending winter in Game of Thrones, emphasizing the need for vigilance and cooperation among global policymakers. He highlighted the risks posed by trade wars, technological disruptions, and market uncertainties, urging for collaborative fiscal and monetary policies to mitigate these challenges. Jokowi stressed that global economic rivalry should not overshadow the importance of unity in facing common threats.

President Joko Widodo likens the current global economic situation to the final season of Game of Thrones, emphasizing the need for cooperation over rivalry. Speaking at the IMF-WBG Annual Meetings in Bali, he warns that economic confrontations can lead to widespread suffering and highlights the importance of global collaboration to address significant threats. He urges policymakers to focus on cooperation to prevent global economic decline.

IMF Managing Director Christine Lagarde highlighted the global economic uncertainty primarily stemming from trade tensions, which could reduce global GDP by nearly 1% over the next two years. The IMF projects global economic growth to be 3.7% by the end of the year, down from the previous forecast of 3.9%. Lagarde emphasized the need for international cooperation to address trade issues and manage private debt, which has reached $182 trillion. She suggested that domestic policies should be complemented by a global financial safety net, such as regional financial arrangements and institutions like the IMF.

President Joko Widodo emphasized the need to enhance sustainable development goals (SDGs) across ASEAN countries, highlighting the region's economic growth despite global challenges. He noted significant progress in reducing poverty and improving access to clean water, healthcare, and education in Indonesia. Jokowi proposed innovative funding sources like blended finance to support SDGs, stressing the importance of global leadership and shared responsibilities for achieving these goals.

The International Monetary Fund (IMF) asserts that Indonesia, as an emerging market, is far from a financial crisis despite global economic uncertainties caused by the US-China trade war. IMF Managing Director Christine Lagarde highlights Indonesia's strong economic indicators, including a 5.27% GDP growth in Q2 2018 and significant poverty reduction. The IMF's Global Financial Stability report warns of potential risks to global economic growth, particularly in developing countries, but notes Indonesia's robust fiscal policies and high foreign reserves.

Indonesia and Singapore have signed a Bilateral Investment Treaty (BIT) and four Memorandums of Understanding (MoUs) in Bali, aimed at protecting investments and strengthening economic relations. The signing was witnessed by Singapore's Prime Minister Lee Hsien Loong and Indonesia's President Joko Widodo. The BIT is expected to enhance investor confidence and promote greater trade and investment flows between the two countries. Singapore has been the largest investor in Indonesia since 2014, with significant investment figures reported in 2017. The agreements also include efforts to boost economic and financial cooperation, particularly in fintech.

The International Monetary Fund (IMF) asserts that while the global economy is safer than during the 2008 financial crisis, it remains vulnerable due to ongoing global uncertainties, particularly in trade tensions. IMF Managing Director Christine Lagarde emphasized the need for countries to collaborate and maintain strong, sustainable economic policies. The IMF's analysis indicates a 5% chance that developing countries, excluding China, could experience significant capital outflows, similar to the 2008 crisis, due to rising US interest rates and uncertain global trade futures.

An earthquake with a magnitude of 6.3 struck Situbondo, East Java, and was felt as far as Nusa Dua, Bali, without causing significant infrastructure damage. The International Monetary Fund (IMF) and World Bank annual meeting in Nusa Dua continued without disruption. The BMKG confirmed the earthquake's epicenter was 61 kilometers northeast of Situbondo at a depth of 10 kilometers, with no tsunami generated. Tremors were felt in various regions, including Malang, Pasuruan, Gianyar, Denpasar, Mataram, and West Lombok.

The International Monetary Fund (IMF) warns that trade tensions could harm global economic growth, particularly in developing countries. The Global Financial Stability report highlights that such tensions could damage market sentiment and reduce global economic growth. Despite these risks, the IMF believes the global financial market remains strong but emphasizes the need for regulatory reforms to enhance financial system resilience. Tobias Adrian, IMF's Financial Counsellor, underscores the importance of using countercyclical buffers in vulnerable countries.

Indonesia's Finance Minister Sri Mulyani Indrawati announced plans to insure all government buildings in the fiscal year 2019, learning from the experiences of countries like the Philippines and Morocco. The move aims to reduce the fiscal burden on the state budget (APBN) and local budgets (APBD) in disaster management. Vice President Jusuf Kalla emphasized the need for a system that includes insurance for state assets to avoid reliance on the APBN or foreign aid, citing the recent destruction in Palu where 2,000 schools and other infrastructure were damaged.

Indonesia's Minister of Energy and Mineral Resources, Ignasius Jonan, announced a 7% increase in premium fuel prices effective from October 10, 2018, at 6:00 PM local time, which was then postponed due to Pertamina's lack of preparedness. The price was set to rise to Rp 7,000 per liter in Java, Madura, and Bali, and to Rp 6,900 per liter outside these regions. The decision was delayed following a directive from the President to discuss the matter further and wait for Pertamina's readiness. The Presidential Staff Office and the Ministry of State-Owned Enterprises were caught off guard by the announcement, indicating a lack of coordination within the government.

The International Monetary Fund (IMF) states that the depreciation of the rupiah against the US dollar can make investment in Indonesia more attractive, as investors can convert their US dollars to rupiah at a higher value. Financial Counsellor Tobias Adrian highlights that Indonesia's current account deficit contributes to the rupiah's depreciation but can be mitigated by foreign portfolio inflows. Minister of State-Owned Enterprises Rini Soemarno also views the weaker rupiah as a positive factor for investment, citing Indonesia's strong economic growth and increasing middle income as additional attractions for investors.

Emerging markets face new uncertainties due to the Federal Reserve's unclear future policy direction. John Williams, President and CEO of the Federal Reserve Bank of New York, stated that with monetary policy normalizing, the Fed cannot provide clear guidance on future policy paths. The Fed has raised interest rates since December 2015, with the latest increase in September, and is expected to raise rates again in December. Williams anticipates the US economy to grow by 3% this year and 2.5% next year, leading to solid job gains and lower unemployment.

Bank Indonesia (BI) forecasts an inflation rate of 3.4% by the end of this year, slightly below its mid-target of 3.5%. Governor Perry Warjiyo announced this during the Central Banking Forum in Nusa Dua, Bali. The lower inflation rate is attributed to efforts by BI and the government to maintain price stability, particularly for food and administered prices. Despite some price fluctuations, such as a slight increase in chili prices and deflation in onion prices, overall market prices remain controlled. Warjiyo remains optimistic that the inflation rate will stay within the target range of 3.5% plus or minus 1% by the end of 2018.

John Williams, President of the Federal Reserve Bank of New York, stated that with monetary policy moving towards normalization, the Fed will no longer provide clear guidance on future interest rate directions. Speaking at the Central Banking Forum in Bali, he noted that future policy directions will be less predictable compared to recent years. Williams projected the US economy to grow by 3% this year and 2.5% next year, with unemployment expected to fall below 3.5% and inflation slightly exceeding the 2% target. The Fed raised its benchmark interest rate to 2-2.25% in September and is expected to raise rates again in December and several times next year if the economy performs as expected.

The International Monetary Fund (IMF) has indicated that countries currently have less ammunition to face global pressures compared to the global crisis a decade ago. Maurice Obstfeld, the IMF's Chief Economist, highlighted the strain in global multilateral policy cooperation, especially in trade, leading to reduced ammunition. He emphasized the need for governments to build fiscal buffers and enhance resilience through financial regulation regimes and structural reforms to improve business, employment, and market dynamism. The IMF has also lowered its global economic growth projection for the year to 3.7% from the previously predicted 3.9% in April, citing increased global trade uncertainty.

The International Monetary Fund (IMF) has stated that the depreciation of the Indonesian rupiah against the US dollar should not be overly concerning. Chief economist Maurice Obstfeld noted that while the rupiah has weakened by 10% against the dollar year-to-date, it has only depreciated by about 4% against Indonesia's trading partner countries. Obstfeld highlighted Indonesia's resilience in facing global economic pressures and mentioned that despite a downward revision in economic growth projections due to monetary tightening, oil prices, and global trade uncertainties, the country's growth remains robust. The IMF has revised Indonesia's economic growth forecast to 5.1% for this year and next, down from the previous projection of 5.3%.

The International Monetary Fund (IMF) supports Indonesia's continued infrastructure development amidst global uncertainty, highlighting the country's attractiveness for foreign direct investment due to reduced regulations. Despite a slight downgrade in economic growth projections to 5.1%, the IMF believes Indonesia can achieve consistent growth through population growth, tax revenue, and investments in education, infrastructure, and social safety nets. IMF Managing Director Christine Lagarde praises Indonesia's economic management, stating that the country does not need IMF loans. Finance Minister Sri Mulyani reiterates that the IMF-World Bank meeting in Bali is not for Indonesia to seek loans, as the country is not in crisis.

The IMF commends Indonesia for its strong domestic economic growth despite global pressures such as rising interest rates and political uncertainties. Chief Economist Maurice Obstfeld highlights Indonesia as a successful example, although the IMF has revised its growth projection for the country to 5.1% for this year and next. The Indonesian government had targeted 5.4% growth for 2018, but Finance Minister Sri Mulyani projects a 5.2% growth rate. The article underscores Indonesia's economic resilience and the potential for consistent growth.

Indonesia's Finance Minister Sri Mulyani Indrawati is monitoring the industry's response to global economic turmoil and uncertainties, following the IMF's projection of Indonesia's economic growth at 5.1% for this and the next year. The IMF revised this figure down from their previous April report of 5.3%. In response to the economic environment, characterized by rising interest rates and exchange rates, Bank Indonesia has raised interest rates to influence investment and exchange rates. The global economic growth projection for this year and 2019 is 3.7%.

The International Monetary Fund (IMF) has revised its global economic growth forecast for this year to 3.7%, down from the previous 3.9% reported in March 2018. Chief Economist Maurice Obstfeld attributes this downgrade to rising interest rates and widespread political uncertainty affecting trade policies. The IMF projects that global economic growth will remain stagnant over the next three years. The report highlights the impact of U.S. fiscal policies and trade tariffs with China, predicting a slowdown in both economies. The IMF also lowered growth forecasts for emerging markets and developing economies due to higher interest rates increasing national debt costs.

Bank Indonesia (BI) considers the International Monetary Fund's (IMF) downward projection of Indonesia's economic growth for this year and next to be unavoidable. The IMF has revised its growth forecast for Indonesia to 5.1% for this year, down from 5.3% in April. BI Deputy Governor Dody Budi Waluyo views the 5.1% growth projection as relatively good, as it is above last year's growth. BI and the government will rely on a mix of fiscal, monetary, and macroprudential policies to maintain economic stability and growth potential amid global economic uncertainties.

The International Monetary Fund (IMF) has revised down its forecast for Indonesia's economic growth to 5.1% for this year and next, from previous estimates of 5.3% and 5.5% respectively. The IMF attributes this adjustment to global tight monetary policy, oil prices, and trade uncertainties. Despite the downgrade, IMF Chief Economist Maurice Obstfeld notes that Indonesia's growth remains fairly strong, supported by population growth, tax revenue, and investments in education, infrastructure, and social safety nets. The aggregate economic growth for ASEAN-5 countries is also expected to decline slightly.

Coordinating Minister for Maritime Affairs and National Committee Chairman for the 2018 IMF-World Bank Annual Meeting, Luhut Binsar Panjaitan, stated that the event held from October 8-14, 2018, in Nusa Dua, Bali, was not extravagant. The budget of Rp 855.5 billion was approved by the government and the House of Representatives, sourced from the 2017 and 2018 State Budget. Luhut clarified that the actual spending was Rp 556 billion, with Rp 192.1 billion already paid. He also mentioned that Indonesia did not cover accommodation for the 14,003 international participants. Criticism arose from former Coordinating Minister for Maritime Affairs Rizal Ramli regarding the large budget and from Dahnil Anzar Simanjuntak of the Prabowo-Sandiaga National Winning Team, who questioned the timing after recent earthquakes in Central Sulawesi and Lombok.

Jack Ma, co-founder of Alibaba Group, is scheduled to speak at several seminars during the IMF-WB meeting in Bali. He will also engage in numerous bilateral meetings. The event, running from October 8 to 14, will host 34,000 participants, including finance ministers and central bank governors from 189 countries, as well as key figures from the financial and economic sectors. The meeting will feature dignitaries from ASEAN countries, CEOs of Multilateral Development Banks, and the UN Secretary-General.

Indonesian Finance Minister Sri Mulyani Indrawati clarified that the country is not seeking loans from the International Monetary Fund (IMF), despite hosting the IMF-World Bank annual meeting in Bali. She emphasized Indonesia's good economic condition as acknowledged by IMF Managing Director Christine Lagarde. Bank Indonesia Governor Perry Warjiyo highlighted Indonesia's agenda to advocate for strengthened policy coordination among nations to support global economic recovery and address uncertainties, including the normalization of policies in the US and trade tensions.

Indonesia aims to promote several domestic agendas at the IMF-World Bank meeting in Bali, focusing on global economic growth, infrastructure financing, digital economy, and sharia-based economy. Bank Indonesia Governor Perry Warjiyo emphasizes the need for policy harmonization among countries to ensure balanced global economic recovery and highlights Indonesia's rapid infrastructure progress. The country also seeks to advance digital finance and sharia-based economic principles, with numerous events planned to discuss these topics.

Several infrastructure projects in Indonesia will be built next year through the KPBU-Availability Payment scheme, estimated at Rp 9.38 trillion. The government has not detailed which projects will use this scheme, but some projects offered this year may be re-offered next year. The Minister of Public Works and Housing, Basuki Hadimuljono, highlighted the need for infrastructure such as roads, bridges, irrigation, clean water, and housing, which cannot rely solely on the state budget. Current projects under the KPBU scheme include water supply systems, multifunctional satellites, national road preservation, railway development, airport development, and toll road projects.

The International Finance Corporation (IFC), a member of the World Bank Group, has issued a Green Komodo Bond in Indonesian rupiah, raising Rp 2 trillion (US$ 134 million) to finance climate-related infrastructure projects in Indonesia. This marks the first issuance of a Komodo Bond in rupiah by a multilateral development bank for climate investments in the country. The five-year bond will be listed on the London and Singapore Stock Exchanges, supporting Indonesia's domestic currency market. IFC's client, Bank OCBC NISP, will use the proceeds to fund climate-friendly projects. The bond received a positive response from investors, indicating strong global interest in financing climate change initiatives.

Indonesian ministers showcased various financing schemes for projects outside the state budget at the IMF-World Bank meetings in Nusa Dua, Bali. Finance Minister Sri Mulyani Indrawati highlighted public-private partnerships, state-owned enterprise assignments, and blended finance as alternatives to relying solely on the state budget. Public Works and Housing Minister Basuki Hadimuljono and Minister of Communication and Informatics Rudiantara emphasized the benefits of these schemes, including greater transparency, risk management, and financial product diversity.

Indonesia, as the host of the annual IMF-World Bank meeting, aims to propose that developed countries communicate and synergize with developing nations before launching policies with global impacts. The meeting, scheduled for October 8-11, 2018, will see attendance from central bank governors, finance ministers, and key figures like Jerome Powell, Yi Gang, Haruhiko Kuroda, Melinda Gates, and Jack Ma. President Joko Widodo will attend a reception dinner on October 12, 2018.

The Directorate General of Taxes under the Ministry of Finance has proposed a tax revenue target of Rp 1.576 trillion for the 2019 State Budget, adjusting to the average exchange rate assumption of Rp 15,000 per US dollar. This proposal has been submitted to the House of Representatives for approval.

The Indonesian government has repeatedly urged businesses to repatriate and convert export proceeds (DHE) to rupiah to stabilize the currency, but these efforts have largely been ineffective. Current policies and incentives, such as offering 0% tax on deposit interest, are not practical for businesses due to operational needs. Key stakeholders, including representatives from Apindo and Kadin Indonesia, highlight that the incentives are not utilized because they do not align with business requirements. Additionally, there are concerns about the banking sector's reluctance to implement these incentives due to regulatory risks. Experts suggest that the government should focus on other measures to stabilize the rupiah, such as expanding tax-free export services to enhance competitiveness and address the current account deficit.

The Indonesian government, through the Ministry of Industry, has announced that domestic investments with fixed capital under Rp 500 billion can receive a 60% mini tax holiday. The policy aims to be more flexible and inclusive, covering more sectors beyond the current 17. Discussions are ongoing with the Coordinating Ministry for Economic Affairs and the Ministry of Finance to expand the sectors eligible for this incentive. The BKPM hopes this will attract new investments and expand existing ones. The policy is under review to include more potential sectors.

The Indonesian government observes a shift in US investment trends from mining to the leisure and digital sectors, particularly in Jakarta. Despite being the seventh-largest investor, US investments in Indonesia remain relatively small compared to countries like Singapore, Japan, and China. Officials emphasize the need to create a conducive digital ecosystem to attract major tech companies like Google and Apple. Additionally, there is a push to enhance trade relations, particularly in sectors like textiles.

The Asian Development Bank (ADB) projects Indonesia's current account deficit (CAD) to widen to 2.6% of GDP this year due to strong private investment and increased imports of capital goods for infrastructure projects. Despite a slowdown in export growth and reduced net inflows from foreign direct investment and portfolio capital, the ADB does not see this as a sign of poor economic fundamentals. The ADB remains cautious due to ongoing trade tensions between China and the US, predicting that the CAD will remain at this level into next year. Bank Indonesia forecasts a slight reduction in CAD to 2.5% by year-end, attributed to the switch to biodiesel (B20) and increased tourism.

The Asian Development Bank (ADB) projects Indonesia's economy to grow by 5.2% this year, driven by strong domestic demand despite external volatility. ADB economist Emma Ellen attributes this to the government's and Bank Indonesia's success in controlling prices, with inflation expected to be 3.4%, down from an earlier projection of 3.7%. Infrastructure improvements and stable fuel prices are key factors. Robust domestic demand, rising incomes, and targeted social programs are expected to boost consumption, benefiting the retail, restaurant, and transportation sectors.

Rizal Ramli, former Coordinating Minister for the Economy, criticizes the Indonesian government's economic policies, suggesting they are behind the curve and could lead to further weakening of the rupiah. He highlights the ineffectiveness of raising import income tax on consumer goods and calls for stronger measures against steel imports from China, which he claims are harming local industries like Krakatau Steel.

The Asian Development Bank projects Indonesia's economy to grow by 5.2% this year, despite global challenges. ADB's Indonesia Representative, Winfried Wicklein, highlighted the country's solid economic fundamentals, controlled inflation, and well-managed fiscal position. Domestic demand is expected to sustain economic growth, driven by rising incomes and job growth, with household spending projected to remain stable. Private investment is also anticipated to boost the economy, although the current account deficit may widen to 2.6% of GDP, higher than Bank Indonesia's projection of less than 2.5%.

Rizal Ramli predicts Indonesia's current account deficit (CAD) will decrease, potentially reaching 2.4% of GDP by the end of the year, down from Bank Indonesia's (BI) prediction of 2.5%. This reduction is attributed to government policies affecting import rates, though the impact is considered minimal. BI's forecast includes a decrease in CAD due to the switch to biodiesel (B20) and increased tourism. The Asian Development Bank (ADB) projects a slightly higher CAD of 2.6% due to strong private investment and increased capital goods imports. Despite these figures, the economic fundamentals of Indonesia remain stable, with no cause for panic.

Indonesia's net international investment position (PII) saw a decline in Q2 2018, indicating reduced dependence on foreign funds. Bank Indonesia (BI) reported a net liability of $305.6 billion, down from $325.6 billion in Q1 2018. This decrease is attributed to a reduction in Foreign Financial Liabilities (KFLN), influenced by the declining value of domestic financial instruments and the strengthening of the US dollar against the rupiah. BI remains optimistic about Indonesia's economic stability and recovery, supported by consistent monetary, fiscal, and structural policy synergies.

The Indonesian government is formulating a new policy to regulate income tax rates on dividends from Infrastructure Investment Funds (Dimfra) and Limited Participation Mutual Funds (RDPT). The plan is to align the tax rates for Dimfra dividends with those of Real Estate Investment Funds (DIRE) and RDPT with mutual funds. The policy is currently under review by the Fiscal Policy Agency (BKF) and the Directorate General of Taxes (DJP). The government aims to simplify the tax treatment for these investment vehicles, which previously faced double taxation.

The Indonesian government is formulating a new policy to cut the final income tax on interest from government and private bonds. Directorate General of Taxes Robert Pakpahan argues that this will be more beneficial for the country by making financial management more efficient. The policy aims to deepen the market by influencing investor considerations and reducing the overall interest burden.

The Indonesian government is formulating a new policy for the final income tax (PPh) on government and private bond interest, with a focus on the domestic market. The current rules, governed by PP No. 100/2013, set the tax rate at 15% for domestic taxpayers and permanent establishments, and 20% or according to double tax treaty rates for foreign taxpayers. Robert Pakpahan, Director General of Taxes, suggests that reducing the tax on bond interest will benefit the state by making financial management more efficient and potentially lowering interest rates, thus deepening the financial market.

The Indonesian government is formulating a new policy for final income tax on government bond interest, which will also apply to private bonds. The policy review aims to address the impact of bond interest tax on investor demand for higher yields. Discussions are ongoing, with considerations of various international practices and comparisons with taxes on other investment instruments. The goal is to create a simpler tax system, with final policy details yet to be determined.

The Indonesian government is formulating a new policy for the final income tax (PPh) on government bond interest due to its impact on investor demand for higher yields. The current yield on government bonds has risen above 8% amidst global financial market uncertainty, leading to higher interest payments by the government despite increased tax revenue. The taxation of bond interest is governed by PP No. 100/2013, with rates at 15% for domestic taxpayers and permanent establishments, and 20% or treaty rates for foreign taxpayers. Experts suggest that lower tax rates could incentivize bond purchases, especially for long-term bonds. A previous proposal in 2016 to revise the tax to zero percent was not implemented. Taxation is one of many factors influencing investor demand, and should not be the sole focus for stimulating investment, according to industry experts.

The rupiah is expected to continue strengthening amid global weakening of the dollar. Nanang Hendarsah from Bank Indonesia attributes this to interest rate hikes by other central banks and a recovery in risk appetite for financial instruments in emerging markets. The dollar index has weakened, and foreign investment in Indonesian government bonds has increased, reflecting a rebalancing of the global portfolio that negatively correlates US bond yields with the dollar.

The United States and China have announced reciprocal tariffs on each other's products, which has led to a rise in US Treasury yields, particularly the 10-year tenor. Despite this, the increase in yields has not triggered significant risk aversion. Bank Indonesia's Nanang Hendarsah notes that the current situation presents an opportunity for Southeast Asian countries to attract foreign direct investment as US companies may shift production from China. The article also highlights the performance of Indonesian government bonds in the secondary market.

The Indonesian government and the Budget Committee (Banggar) of the House of Representatives (DPR RI) have agreed on state capital injections (PMN) totaling Rp 17.8 trillion for three state-owned enterprises (BUMN) in 2019: PT PLN, PT Hutama Karya (HK), and PT Sarana Multigriya Finansial (SMF). The funds are allocated for productive activities, including rural electrification and toll road construction. Despite the agreement, some committee members questioned the repeated funding requests from PLN and HK. The investments aim to support infrastructure development and housing finance sustainability.

The Indonesian government and the Budget Committee of the House of Representatives (Banggar DPR RI) have agreed on debt financing in the 2019 State Budget Draft (RAPBN) amounting to Rp 359.12 trillion, slightly down from the initial proposal of Rp 359.27 trillion due to exchange rate adjustments. The debt financing consists of net government securities (SBN) of Rp 386.21 trillion and net loans of minus Rp 27.09 trillion. Despite the exchange rate adjustment, the budget deficit target remains at 1.84% of GDP. Non-debt financing is targeted at Rp 60.139 trillion, including investment financing, loan provision, and other financing.