Trade and Investment Bulletin Volume II, November 2016 | Page 3

INDONESIA TRADE SURPLUS LARGEST IN 14 MONTHS
Number I | September 2016 products produced by his company ’ s partners in Indonesia .
According to him , “ Vision-Ease ” has enjoyed a very healthy trade relationship with Indonesia in the past several years , including owning a factory in Bekasi . He also explained how his company strives to treat the employees in Indonesia well by paying their salaries even during the difficult time when the company had to stop operating for several months due to a fire incident .
( Source : The Indonesian Consulate General )
FORBES LAUDS INDONESIA ’ S EFFORTS IN CUTTING BARRIERS TO DOING BUSINESS ( continue )
Indonesian President , Joko " Jokowi " Widodo , has targeted the country to rank at least at 40 . Forbes said Indonesia should continue making a breakthrough in the area — such as following New Zealand ' s steps in allowing businesses to be established and registered in just a few hours — and ensure to follow it through year after year .
" Indonesia has a lot of opportunities because others have made so many mistakes . If Indonesia persists for several years , keeping the rupiah stable , reduce those tax rates , reduce the regulation , make it easier for business leaders ,
Indonesia would be an inspiration and a model for business ," he said .
Forbes also highlighted Jokowi ' s plan to cut the country ' s corporate tax to 17 percent to match that in Singapore , from the current 25 percent , as a step in right direction to invigorate economic growth . Ireland keeps its corporate tax rate at 12.5 percent , which is one of the lowest in Europe , and is slated to be the fastest growing economy in the region , Forbes said .
The European Commission estimated Ireland would grow 4.9 percent this year , compared to 1.8 percent growth for the European Union . The media mogul also noted US stagnation in the 70s occurred during a period of increasing corporate taxes , which ended only when then president Ronald Reagan slashed taxes during the 80s and heralded in a two decades of economic boom .
Forbes , the US-based business magazine , will hold a global conference in Jakarta Nov . 29 to Dec . 1 , 2016 , featuring business leaders , chief executives and other distinguished local and international guests including Investment Coordinating Board chairman Thomas Lembong and media tycoon Chairul Tandjung .
( Source : Jakarta Globe )

INDONESIA TRADE SURPLUS LARGEST IN 14 MONTHS

Indonesia posted a trade surplus of 1.21 USD billion in September 2016 , compared to a 1.03 billion surplus a year earlier and beating market consensus of a USD 0.45 billion . It was the largest trade surplus since July 2015 as exports fell much less than imports .
Year-on-year , sales dropped slightly by 0.59 percent to USD 12.51 billion , following a 0.74 percent decline in August and market expectations of a 1.61 percent decrease . While sales of non-oil and gas products increased by 2.85 percent to USD 11.45 billion , those of oil and gas dropped by 26.97 percent to USD 1.06 billion .
Imports decreased by 2.26 percent to USD 11.56 billion , compared to a 0.49 percent fall in a month earlier and market consensus of a 3.76 percent increased . It was the 24th consecutive month of decline . Purchases of non-oil and gas product decreased 8.8 percent to USD 1.91 billion and those of oil and gas decreased by 0.95 percent to USD 9.65 billion . Compared to the previous month , exports were down by 1.84 percent . Oil exports declined 6.78 percent and sales of non-oil and gas products dropped 1.35 percent . By categories , outbound shipments declined for pearls , precious and semi-precious stones ( -25.49 percent ) and machine / mechanical equipment ( -9.38 percent ).
In contrast , sales rose for : fats / vegetable animal oils (+ 4.11 percent ); ores , crust , metal ash (+ 94.3 percent ) and tin (+ 68.05 ). Sales to most of the country ' s trading partners declined : the ASEAN countries ( -3.74 percent ), the EU countries ( -0.40 percent ), China ( -0.73 percent ), Japan ( -5.73 percent ) and South Korea ( -7.61 percent ). In contrast , sales rose to the US (+ 0.09 percent ), India (+ 9.70 percent ) and Taiwan (+ 15.45 percent ). Compared to a month earlier , imports decreased 8.78 percent . Purchases of oil and gas fell by 2.97
Number II / November 2016 | Trade & Investment Bulletin 3