SUHERMAN SANTIKNO’s Post

PCAF is pleased to welcome Kumpulan Wang Persaraan (Diperbadankan) [KWAP] KWAP Malaysia, the 10th Malaysian financial institution to join our industry-led initiative. KWAP's commitment to PCAF marks its dedication to measuring and disclosing the #GHGemissions of its loans and investments using the PCAF methodology. #pcafglobal #sustainablefinance #climatefinance

Because the success of Nusantara will not help him get re-elected again. Everyone knows Jokowi was popular. And for Prabowo to win, he needed the supporters of Jokowi to vote for him. That was why he aligned with Jokowi’s plan on moving the capital to Nusantara. To show that he is aligned with Jokowi. But now that he has won, is this project still important for him? Probably not. Java, where JKT is located, still has the largest Indonesian population throughout the country. It makes sense to spend a large part of the state budget on Java to ensure Prabowo’s popularity for another term. Java is also where most of the businesses take place, especially JKT. And developments in JKT, especially PIK and PIK2, make JKT a more interesting place for foreign investors to invest in. And Prabowo would be smart to stay close to JKT where the business and money are. Because at the end of the day, Indonesia is still such that money and lobbies still play an important part in determining the success of a politician when it comes to elections! Interested to know more about where to invest in Indonesia? Feel free to DM me! 😀 #indonesia #business #investment #development

Indonesia Looks Far Ahead Indonesia has issued its longest-ever 40-year bonds. It's an unusual event in the world of borrowing, although most countries have had long-term issuances for a while now, so in the world of professional bond investors, this is hardly sensational news. 🙄 However, every piece of news has two sides. Indonesia, a country with a population of 275 million, is moving towards developing its domestic borrowing market. Issuing long-term local sovereign bonds is a step towards supporting pension funds and long-term investors within the country. The fact that they successfully collected bids indirectly confirms the growth of the domestic pension market. Liquidity for these instruments will, of course, be very low. But almost inevitably, there will come a time when a global investor, enticed by the interest rate difference and the rupiah’s exchange rate, buys an expensive block. That investor will then either hold onto it until maturity or resell it to an uninformed retail buyer 🤔 #Indonesia #bonds

How Indonesia's State-Owned Enterprises (SOEs) Avoid Financial Problems Some of Indonesia’s state-owned enterprises (SOEs),  such as Wijaya Karya, Kimia Farma, Indofarma are in vulnerable financial challenges. To safeguard their financial health and ensure long-term sustainability, the board has to bear this in mind. Indonesian SOEs are increasingly adopting comprehensive financial strategies that include detailed budgeting, cash flow management, and financial forecasting. This involves identifying, assessing, and prioritizing financial risks, such as currency fluctuations, interest rate changes, and credit risks including hedging and insurance to protect themselves. Improving operational efficiency is another key strategy to avoid financial difficulties including adopting modern technologies, automating processes, and optimizing supply chains to manage their resources, track performance better, and make informed decisions contributing to economic resilience. Indonesian SOEs should diversify their business portfolios to reduce dependency on a single source of revenue by expanding into new markets, developing new products and services, and exploring innovative business models. For example, PT Pertamina, Indonesia’s state-owned oil and gas company, has ventured into renewable energy and petrochemicals, reducing its reliance on traditional oil and gas revenues. Effective debt management is crucial for maintaining financial health. To avoid the pitfalls of excessive debt, some SOEs are prioritizing the repayment of high-interest loans and refinancing existing debt to take advantage of lower interest rates. This prudent borrowing approach reduces the burden of debt servicing and frees up capital for more strategic investments. Strong governance and transparency are vital in preventing financial problems, including improving oversight, accountability, and transparency in financial reporting to avoid financial mismanagement and ensure that resources are used efficiently. The Indonesian government plays a significant role in the financial stability of SOEs. This support includes capital injections during economic downturns, state-backed loan guarantees, and strategic guidance to navigate challenging economic conditions. Forming strategic partnerships with private sector entities, is another way Indonesian SOEs bolster their financial stability to ease access to additional capital, share risks, and bring expertise that can enhance operational efficiency and innovation. For instance, partnerships in sectors like infrastructure and energy have enabled SOEs to undertake large-scale projects without overextending their financial resources, thus avoiding potential financial strain. this is not the only one. Reducing political intervention helping BUMN keep growing #savebumn#outfromloss #bumnforgoldenindonesia

While Indonesia's insurance industry has experienced impressive growth in recent years, there are still significant challenges in terms of market penetration. The country's large and diverse population, along with low levels of financial literacy, pose obstacles to reaching a wider customer base. However, with continued efforts to educate and engage the public, as well as technological advancements and government support, the potential for further expansion and development remains promising. #insuranceindustry #indonesia #insurancebroker #insuranceagents

Advancing Together with Financial Literacy 🇮🇩 Happy Independence Day, Sobat MRE! 🇮🇩 This year, we embrace the theme "Nusantara Baru Indonesia Maju" (New Archipelago, Advancing Indonesia). Just like Indonesia continues to transform, we also need to upgrade ourselves in financial literacy! 💡 At MRE, we believe that understanding personal finance is the first step toward prosperity. Let’s all commit to improving our financial literacy. Every small step towards better understanding of finance can lead to significant change! 📈 What have you done to enhance your financial literacy? Come on, write in the comments and let’s share inspiration! #Merdeka79 #NusantaraBaru #FinancialLiteracy #MRE

#Indonesia: Prabowo's bloated cabinet may stifle reform New President Prabowo Subianto has the support of 80% of parliament but his own party has merely 14%, so building and maintaining alliances will be key His first cabinet, announced on 20 Oct, has 109 members! That is threefold larger than the last cabinet and increases the risk of slow decision-taking and reform implementation I have a look at what this means for the investment case in Indonesia equities (eg does it put the onus back on commodity price outlook) in my full report on Tellimer, linked in the comment below #emergingmarkets #asean

🌴 𝐑𝐞𝐭𝐢𝐫𝐞 𝐢𝐧 𝐩𝐚𝐫𝐚𝐝𝐢𝐬𝐞! 𝐓𝐡𝐞 𝐬𝐭𝐫𝐨𝐧𝐠 𝐔𝐒 𝐃𝐨𝐥𝐥𝐚𝐫 𝐦𝐚𝐤𝐞𝐬 𝐬𝐭𝐫𝐞𝐭𝐜𝐡𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐩𝐞𝐧𝐬𝐢𝐨𝐧 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐢𝐧 𝐁𝐚𝐥𝐢 𝐚 𝐫𝐞𝐚𝐥𝐢𝐭𝐲 (𝐚𝐧𝐝 𝐰𝐡𝐲 𝐲𝐨𝐮 𝐬𝐡𝐨𝐮𝐥𝐝 𝐬𝐞𝐫𝐢𝐨𝐮𝐬𝐥𝐲 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐢𝐭!) Indonesia's Finance Minister, Sri Mulyani, recently shared some fantastic news in a Bloomberg interview, and it's got me thinking...Bali, Indonesia is the place to enjoy your golden years. Here's why: 𝐒𝐭𝐫𝐞𝐭𝐜𝐡 𝐲𝐨𝐮𝐫 𝐫𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐬𝐚𝐯𝐢𝐧𝐠𝐬. The strong U.S. dollar gives you incredible purchasing power. Think luxurious living on a modest budget! 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐟𝐨𝐫 𝐩𝐞𝐚𝐜𝐞 𝐨𝐟 𝐦𝐢𝐧𝐝. Sri Mulyani's focus on smart economic policies creates a secure environment for your nest egg to thrive. 𝐁𝐞𝐲𝐨𝐧𝐝 𝐭𝐡𝐞 𝐛𝐞𝐚𝐜𝐡𝐞𝐬: 𝐁𝐚𝐥𝐢 𝐨𝐟𝐟𝐞𝐫𝐬 𝐚 𝐯𝐢𝐛𝐫𝐚𝐧𝐭 𝐦𝐢𝐱 𝐨𝐟 𝐫𝐞𝐥𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐬𝐭𝐢𝐦𝐮𝐥𝐚𝐭𝐢𝐨𝐧. You'll find cultural experiences, wellness retreats, and maybe even new hobbies! 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐥𝐢𝐯𝐢𝐧𝐠? 𝐏𝐥𝐞𝐚𝐬𝐚𝐧𝐭𝐥𝐲 𝐬𝐮𝐫𝐩𝐫𝐢𝐬𝐢𝐧𝐠. Enjoy fresh food, beautiful surroundings, and a fulfilling lifestyle without breaking the bank. 𝐒𝐦𝐨𝐨𝐭𝐡 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐫𝐞𝐭𝐢𝐫𝐞𝐞 𝐯𝐢𝐬𝐚𝐬. Indonesia makes the process easy, so you can focus on settling into your island paradise. As a As a Balinese currently residing in Europe and Associate Wealth Manager, I understand the financial side of making your retirement dream a reality. Let's talk about how to maximize your income and investments for the best possible Bali life! 👉 Ready to explore the possibilities? Drop me a DM, Let's chat! #RetireInBali #BaliRetirement #ExpatRetirement #WealthManagement #Indonesia #SouthEastAsia

Push Factors for Indonesia's Property Market to Outperform In the coming months, several key factors are poised to drive growth in Indonesia's property market: 1. Interest Rate Reductions: The anticipated reduction of the Federal Reserve's interest rates in September and December 2024 is expected to be mirrored by lower bank interest rates in Indonesia. This will likely make borrowing more affordable and stimulate property investments. 2. Political Stability: With the inauguration of Indonesia's new president in October 2024, followed by regional elections (Pilkada) at the end of the year, political stability is anticipated. This stability is crucial for investor confidence and economic growth. 3. Currency Stability: The stability of the USD against the IDR will also play a significant role. A stable exchange rate can enhance investor confidence and attract foreign investment into the property sector. These factors combined are expected to have a direct and positive impact on Indonesia's property market, fostering growth and opportunities. #LeadsProperty #IndonesiaPropertyMarket

Local Governement Fiscal Authority Index, does it matter? We are excited to convey our project that has been published in the "Jurnal Terapan Pemerintahan Minangkabau" (Indonesia Accredited: Sinta 5). Since the enactment of Decentralization in Indonesia, there have been policy changes, one of which is finance. Regional Fiscal Authority Index (FAI) was used to measure the extent of the local government's financial condition to be used as a development process. We investigate the policy process and achievement using spatial analysis and panel data regression to identify the effect of fiscal independence on development outcomes, case studies in local government of West Java. We found that most regions still have low fiscal independence and low human development outcomes in regencies and cities. Interestingly, a different pattern was found between regions located at the border and industrial centers with other regions. But it was not found that the regional fiscal authority had an effect on the achievement of development. So, does it matter? Find and Enjoy!