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Indonesian Finance Minister Sri Mulyani Indrawati stated that the country's state budget (APBN) is resistant to shocks as it recorded a surplus of Rp107.4 trillion as of August 2022, or 0.58 percent of the gross domestic product.  “With this surplus, much lower debt issuance, and a lower de­cit, our APBN strategy is very matched for the current challenges stemming from the high cost of funds, shocks in the ­nancial sector, the trend of rising interest rates, and the strengthening of the US dollar,” said Sri in Jakarta. The budget surplus has been recorded for eight consecutive months. Sri Mulyani claimed that the government had managed to keep the state's ­nances in surplus until last month. The projection at the end of the year will still be a de­cit. The state treasurer believed that the state budget de­cit could be suppressed from the current outlook of 3.92 percent   https://en.tempo.co/read/1638599/sri-mulyani-reports-state-budget-rp107-4tn-surplus-amid-turmoil

President Jokowi stated that Indonesia targets to increase the number of micro, small and medium-scale enterprises (MSMEs) entering the digital ecosystem to reach 30 million by 2024. "As many as 19 million MSMEs have joined the digital ecosystem, and it is targeted that 30 million MSMEs will join the digital economy by 2024," President Jokowi noted in a speech at the Annual Session of the Indonesian People's Consultative (MPR) Assembly and the Joint Session of the House of Representatives (DPR) and the Regional Representative Council (DPD).   https://en.antaranews.com/news/244733/indonesia-targets-30-million-msmes-entering-digital-ecosystem-by-2024

Japanese auto giant Toyota Motor Corporation (TMC) will open hybrid vehicle plants in Indonesia to supply the domestic market and is not in rush to go full-electric in Southeast Asia’s biggest nation. Earlier this month, President Jokowi signed an instruction that obliges high-ranking central and regional government officials to use battery electric vehicles (BEV) in their operational duties to lead the transition towards the use of fossil fuel-free vehicles. Toyota will instead begin an aggressive campaign on hybrid vehicles, which use a combination of fossil fuel and batteries, before moving to BEVs. Toyota is a dominant force in the Indonesian automotive industry with a 31 percent share of the national auto sales in the January-August period of the year, according to data from the Indonesian Automotive Industry Association. Together with sister company Daihatsu, Toyota controls about 50 percent of the Indonesian market share.

Indonesia's infl­ation accelerated in September as subsidized fuel prices hike early in the month increased energy and transport costs for the country's consumers. The Central Statistics Agency (BPS) said the consumer price index, a broad basket of good and service prices used to measure in­flation, rose 5.95 percent in September compared to the same month last year. That was the highest infl­ation rate since October 2015. "In September, gasoline, public transport fares, rice, diesel, inter-city fares, online rideshare fares, and household fuel price contribute to the in­ation the most," the Head of BPS Margo Yuwono said. To fight in­ation, Bank Indonesia has increased its benchmark interest rate by 75 basis points to 4.25 percent in the past two months.   https://jakartaglobe.id/business/indonesia-inflation-jumps-to-the-highest-level-in-seven-years

The Outlook projects global growth at a modest 3% this year before slowing further to just 2.2% in 2023. This is well below the pace of economic growth projected prior to the war and represents around USD 2.8 trillion in foregone global output in 2023. Most 2023 growth forecasts for G-20 was reduced by OECD. Indonesia is the only group member with slightly better outlook.   https://www.oecd.org/newsroom/oecd-interim-economic-outlook-warns-of-pervasive-global-economic-slowdown.html https://www.bloomberg.com/news/articles/2022-09-26/world-economy-jolted-by-war-with-recessions-now-seen-looming

Apple and Google are unveiling their latest generation of smartphones, jockeying to distinguish the new devices from previous models. But one of the most signi­cant changes will go largely unnoticed by consumers: some of these phones will not be made in China. Worried about geopolitical tensions and stung by pandemic shutdowns, Google, Apple and others are moving some work to nearby countries. A very small portion of Apple’s latest iPhones will be made in India, and part of Google’s newest Pixel phone production will be done in Vietnam, people familiar with their plans said. Foxconn, Apple’s largest contract manufacturer, recently signed a USD 300 million deal to expand in northern Vietnam with a new factory that will generate 30,000 jobs, according to state media. The latest spending was in addition to USD 1.5 billion that the Vietnamese government had said Foxconn had already invested in the country. This year, Google plans to move manufacturing from Foxconn facilities in southern China to Vietnam, where it will begin assembling its latest model, the Pixel 7, two people with knowledge of the plans said. The shift is a response to growing concerns about the geopolitical tensions and pandemic-induced supply chain disruptions that have involved China in the last few years. China has long been the world’s factory floor for high-tech electronics, unrivaled in its ability to secure legions of high-skilled workers and the production capacity to handle demand for the next hot device.   https://www.nytimes.com/2022/09/01/business/tech-companies-china.html

Vietnam's economy as measured by gross domestic product grew 13.67% in real terms in the July-September period from a year earlier as exports to the U.S. surged. A sharp recovery in personal consumption also contributed to the ­rst quarterly growth of more than 10% since 2009, when comparable data began to be compiled, according to the General Statistics Office of Vietnam. In early September, the International Monetary Fund raised its projection for Vietnamese growth in 2022 to 7%, up 1 percentage point from three months earlier. It called the country's inflation environment relatively subdued and took note of ongoing recoveries in manufacturing, retailing and tourism. https://asia.nikkei.com/Economy/Vietnam-GDP-grows-13.67-in-Q3-on-brisk-exports-to-U.S

In the midst of global uncertainty that is still looming, Indonesia's economic growth performance is believed to be still good. However, there are still domestic risks in the form of rising inflation.  Indonesia's economic growth in 2022 will reach 5.10% on an annual basis and will increase in 2023 to 5.32% on an annual basis. Bank Central Asia (BCA) Chief Economist David Sumual estimates that Indonesia's economic growth will remain strong in the storm of global uncertainty. However, he sees the risk of a slow down in exports due to the global economic slowdown and the normalization of commodity prices. According to him, potential investors are still very optimistic about investing in Indonesia because of structural reforms and various policies issued by the government to attract investment. "They will continue to enter sectors related to infrastructure, logistics, manufacturing, and also retail," said David. https://nasional.kontan.co.id/news/indonesia-masih-kuat-di-saat-perekonomian-dunia-melambat