News

China’s factory-gate prices fell at the fastest pace in over seven-and-a-half years, while consumer inflation was at its slowest since 2021, adding to the case for policymakers to use more stimulus to revive sluggish demand. Factory gate price is the price of the product available at the factory, excluding any separately billed transport or delivery charge. Meanwhile, the producer price index (PPI) fell for a ninth consecutive month, down 5.4% from a year earlier, marking the steepest decline since December 2015.   Source : https://edition.cnn.com/2023/07/10/economy/china-prices-june-decline-hnk-intl/index.html

Motorcycle sales in Indonesia experienced a significant increase in May 2023. Not only that, but motorcycle exports also showed a remarkable surge. According to data from the Indonesian Motorcycle Industry Association (AISI), Indonesian-made motorcycle exports reached 55,743 units in May, which is a 35% increase compared to April 2023 when 41,201 units were exported. However, the total exports from January to May 2023, which reached 218,802 units, were still lower than the same period last year, which recorded 274,929 units. It is worth noting that scooters accounted for the largest share of motorcycle exports during January to May 2023, reaching 54.04%. On the other hand, underbone motorcycles accounted for 21.06%, while sport motorcycles accounted for approximately 24.90%. Source : https://amp.kompas.com/otomotif/read/2023/06/12/170100615/ekspor-motor-buatan-indonesia-naik-35-persen

Indonesia's foreign direct investment (FDI) could go up to 1.4 percent of its gross domestic product, or GDP, in 2025, according to a recent report by the World Bank. The World Bank attributed this uptick to the job creation law and the government's industrial downstreaming strategy of processing raw minerals at home for greater added value.   Source : https://jakartaglobe.id/business/indonesias-fdi-to-hit-14-pct-of-gdp-in-2025-world-bank

Indonesia experienced a slight trade surplus of US$0.44 billion in May 2023, indicating a surplus for 37 consecutive months since May 2020, according to Statistics Indonesia (BPS). The amount is also lower than the surplus of US$2.9 billion recorded in May 2022. BPS also noted that Indonesia's export value in May 2023 had reached US$21.72 billion, increasing by 12.61 percent month-to-month. It also rose by 0.96 percent compared to May 2022. Furthermore, Indonesia's import value had reached US$21.28 billion in May 2023, up by 38.65 percent compared to the imports recorded in April 2023. Additionally, it increased by 14.35 percent year-on-year.

US-based company SEG Solar Inc and ATW Group plan to build a USD 500 million solar panel and module factory in the Batang Integrated Industrial Estate  (KITB), Central Java, following the signing of a pre-cooperation agreement in Washington DC. "This collaboration is the Indonesian government's attempt to support the energy transition and initiate a more open partnership between us and the government of the United States," said Investment Minister/ Investment Coordinating Board (BKPM) head Bahlil Lahadalia. According to Minister Bahlil, the collaboration between SEG Solar and ATW Group is important to avoid the perception that Indonesia only accepts investments from certain countries and to capitalize on the US Inflation Reduction Act (IRA). The act apparently helps accelerate US investments in electric vehicle ecosystems around the globe, including Indonesia. That was why, Bahlil visited the US and tried to convince investors there to put their money into projects in Indonesia, especially export-oriented ones. To build a solar panel and module factory with a total capacity of 5 gigawatts (GW), SEG Solar and ATW Group formed a joint venture. The construction of the factory, capable of providing jobs for up to 2,000 people, is expected to start next year. The demand for solar panels and modules will keep on rising increase along with the global energy transition. Solar power plants are preferred by many because they are easy to build. In Indonesia alone, there are plans by its government to erect 420 GW of solar power plants (PLTS) by 2060.   Source : https://dinsights.katadata.co.id/read/2023/06/26/seg-solar-atw-group-to-build-us500-mln-solar-panel-factory-in-batang

A survey by CNBC and Morning Consult found 92% of Americans are pulling back spending. It’s further evidence of what retailers like Walmart, Target, Home Depot and Best Buy called out as cautious consumer-spending shifts during the first quarter. Among the hardest-hit categories by inflation-fueled spending cuts, clothing came in as the No. 1 nonessential category where consumers have cut back. Shoppers continue to report inflation squeezing their finances, with concerns particularly heightened among middle-income Americans. Of the survey respondents, 92% of middle-income Americans — or those who make between $50,000 and $100,000 a year — reported being “somewhat” or “very” worried about higher prices.   Source : Cnbc

China’s exports shrank much faster than expected and imports fell, albeit at a slower pace, as manufacturers struggled to find demand abroad and domestic consumption remained sluggish.   China’s factory activity shrank faster than expected in May on weakening demand. The PMI subindexes showed factory output swung to contraction from expansion while new orders, including new exports, fell for a second month.   Source : https://edition.cnn.com/2023/06/07/economy/china-trade-may-exports-hnk-intl/index.html    

Indonesia experienced a slight trade surplus of US$0.44 billion in May 2023, indicating a surplus for 37 consecutive months since May 2020, according to Statistics Indonesia (BPS). The amount is also lower than the surplus of US$2.9 billion recorded in May 2022. BPS also noted that Indonesia's export value in May 2023 had reached US$21.72 billion, increasing by 12.61 percent month-to-month. It also rose by 0.96 percent compared to May 2022. Furthermore, Indonesia's import value had reached US$21.28 billion in May 2023, up by 38.65 percent compared to the imports recorded in April 2023. Additionally, it increased by 14.35 percent year-on-year.   Source : https://en.antaranews.com/news/285219/indonesias-trade-balance-recorded-slight-surplus-in-may-2023-bps