Investor confidence in Indonesia will falter

2018 ◽  
Keyword(s):  
Foreign Investment ◽  
Task Force ◽  
Investment Banking ◽  
District Court ◽  
State Spending ◽  
Foreign Investors ◽  
Content Type ◽  
Investor Confidence ◽  
Legal Risks ◽  
New Business

Subject Legal risks to investment in Indonesia. Significance The South Jakarta District Court in late November ordered US investment banking group Goldman Sachs to pay 24 million dollars in damages to property developer Benny Tjokrosaputro. He had sued Goldman Sachs in September 2016, claiming that it had sold shares which he rightfully owned. Foreign investors will be increasingly wary of Indonesia's legal system. Impacts Investors will be increasingly sceptical of Jakarta's new business task force, though it is designed to support them. Jakarta will step up efforts to encourage foreign investment in infrastructure, despite falling confidence. Increases in state spending may raise corruption relating to the distribution of funds in Indonesia.

Delhi’s arbitration policy may hit foreign investment

2018 ◽  
Keyword(s):  
Foreign Investment ◽  
Prime Minister ◽  
State Agencies ◽  
International Arbitration ◽  
Foreign Investors ◽  
Content Type ◽  
Doing Business ◽  
Legal Risks ◽  
Ease Of Doing Business

Subject India's policies on domestic and international arbitration. Significance The proposed Indian Arbitration Council Act seeks to institutionalise domestic arbitration procedures and make the country a centre for international arbitration practice. Delhi is seeking to protect its state agencies from future accountability before international arbitration courts. Impacts Accusations of partiality against India’s judiciary are likely to increase. Prime Minister Narendra Modi will appeal to foreign investors despite the legal risks they face in India. India’s reputation for ease of doing business is likely to improve only gradually.

Australia will seek foreign infrastructure money

2019 ◽  
Keyword(s):  
Population Growth ◽  
Foreign Investment ◽  
Foreign Investor ◽  
State Governments ◽  
Foreign Investors ◽  
Content Type ◽  
Competitive Disadvantage ◽  
The Government ◽  
Budget Surplus ◽  
Tax Cuts

Significance Tax cuts were announced earlier this month for foreign investment in infrastructure, including transport, energy, water and communication. The move follows concerns that spending on infrastructure is too low for Australia’s projected population growth. Impacts The stimulus does not involve any new spending and will require the support of state governments, which co-fund some projects. Tax concessions will help ease a competitive disadvantage faced by foreign investors, but there will still be market barriers. Uncertain confidence in the current government could depress foreign investor interest. If it maintains the budget surplus, the government will keep backbenchers’ support.

Papua New Guinea's economy is set to weaken

2019 ◽  
Keyword(s):  
Natural Gas ◽  
Papua New Guinea ◽  
Foreign Investment ◽  
Aggregate Demand ◽  
New Guinea ◽  
Macroeconomic Policy ◽  
Gas Oil ◽  
Content Type ◽  
Investor Confidence ◽  
Economic Outlook

Subject The economic outlook for Papua New Guinea. Significance The outlook for the leading commodity exports from Papua New Guinea (PNG) -- natural gas, oil and gold -- remains positive, but by most counts the economy is deteriorating and will worsen as Asia’s aggregate demand for resource commodities falls. Impacts The new government may pass legislation to obtain higher returns to PNG from foreign investment. Perceived corruption and declining governance will directly damage investor confidence. As financial and economic pressures mount, there may well be changes in macroeconomic policy.

Iran conservatives will stall Rouhani's reform efforts

2015 ◽  
Keyword(s):  
Civil Society ◽  
Gender Equality ◽  
Foreign Investment ◽  
Political Competition ◽  
Political Reform ◽  
Election Campaign ◽  
Foreign Investors ◽  
Content Type ◽  
Near Term ◽  
Domestic Reform

Significance President Hassan Rouhani has satisfied his constituents by concluding the nuclear deal -- the key pledge of his 2013 election campaign. However, he has yet to deliver on a number of promises on domestic reform, from civil society liberalisation to gender equality and unemployment. Impacts The nuclear deal should enable Rouhani's re-election in 2017 regardless of the outcome of his political reform efforts. Successful political reforms would improve transparency and reduce corruption, making Iran more attractive for foreign investors. Increased domestic political competition will not undermine the nuclear deal, which is key to sanctions relief and foreign investment. Election tensions will ensure that Iran does not moderate its regional foreign policy in any significant way in the near term.

Indonesian reform plans may boost economy longer-term

2015 ◽  
Keyword(s):  
Monetary Policy ◽  
Financial Market ◽  
Foreign Investment ◽  
Institutional Reform ◽  
Market Volatility ◽  
Power Balance ◽  
Gdp Growth ◽  
Infrastructure Development ◽  
Content Type ◽  
Investor Confidence

Subject Jokowi's reform packages. Significance President Joko 'Jokowi' Widodo last week announced the first of three economic packages designed to re-invigorate the economy and attract foreign investment. The remaining two packages will be announced later this month and in November respectively. Similar packages have been devised by past administrations, but to little effect. To gain investor confidence, Jokowi will need to specify how his administration intends to implement its plans. Impacts Financial market volatility will continue until US monetary policy begins to normalise (probably no earlier than December). The power balance in Jokowi's cabinet militates against institutional reform. Policies to boost infrastructure development promise longer-term gain, but little boost to 2015 GDP growth.

Investors will return slowly to Iran despite potential

2015 ◽  
Keyword(s):  
Foreign Investment ◽  
Consumer Goods ◽  
Financial Services ◽  
Financial System ◽  
Pole Position ◽  
Content Type ◽  
Investor Confidence ◽  
Foreign Companies ◽  
The World ◽  
Oil Sector

Subject Iran investment outlook. Significance Foreign investment in Iran's non-oil sector is poised for growth following the nuclear deal announced with world powers on July 14. If implemented successfully the agreement will see Iran reintegrated into the world financial system, some 100 billion dollars of its foreign assets unfrozen and US sanctions removed from firms from third countries that trade with it. While foreign companies and investors will move cautiously, they will begin exploring a market that has been performing well below potential for years. Impacts European companies will be in pole position to re-enter the Iranian market. Main non-oil and non-gas sectors of investor interest will include healthcare, financial services, telecoms, consumer goods and transport. Government's strong economic team will encourage investor confidence.

IMF deal will have mixed impact in Argentina

2018 ◽  
Keyword(s):  
Central Bank ◽  
Policy Coordination ◽  
Medium Term ◽  
Treasury Bonds ◽  
Monetary Policies ◽  
Foreign Investors ◽  
Content Type ◽  
Investor Confidence ◽  
Combined Operation ◽  
The Government

Significance Driven by the currency run that saw a depreciation of 24.1% in just three weeks, the government has begun talks with the IMF in a bid to restore investor confidence. The peso run ended on May 15 owing to a combined operation by the Central Bank and the Finance Ministry: the Central Bank put a floor under the exchange rate by offering 5 billion dollars at 25 pesos to the dollar while the Finance Ministry reopened its tender of Treasury bonds to attract foreign investors. Impacts The sharp peso depreciation will boost inflation; workers will demand a reopening of wage negotiations. Falling real incomes will undermine economic recovery. Investors will demand more policy coordination and coherent fiscal and monetary policies. IMF funds will ease medium-term default fears, but fiscal tightening will be required to lower dependence on foreign finance.

Reform will improve foreign firms’ treatment in China

2020 ◽  
Keyword(s):  
Foreign Investment ◽  
Structural Changes ◽  
The United States ◽  
Foreign Firms ◽  
Foreign Investors ◽  
Content Type ◽  
Playing Field ◽  
Investment Law ◽  
The Law ◽  
Over Time

Subject Reform of China's foreign investment law. Significance The new Foreign Investment Law that took effect on January 1 is a response to a slowing economy and pressure from other governments, particularly the United States, to ‘level the playing field’ for foreign investors. Impacts There will not be a flood of new investment as a result of the law, but it will make a difference over time. Companies will have five years to prepare for structural changes as rules specific to foreign-invested companies disappear. The regulations contain few specifics on enforcement, indicating that Beijing is not yet ready to give teeth to the law.

Indonesia's structural gaps impede its digital economy

2021 ◽  
Keyword(s):  
Foreign Investment ◽  
Consumer Behaviour ◽  
Digital Economy ◽  
The Internet ◽  
Structural Constraints ◽  
Foreign Investors ◽  
Content Type ◽  
Digital Ecosystem ◽  
Start Ups

Significance About 150 million people (55% of the population) are already online, and three-quarters of them access the internet via smart feature phones or smartphones. Some pandemic-related shifts in consumer behaviour are probably permanent, promising opportunities to both domestic entrepreneurs and foreign investors. However, opportunities for the local workforce in the digital economy are limited by several structural constraints. Impacts Low-skilled logistics and delivery jobs in e-commerce will be poorly paid and precarious. Indonesian start-ups face major shortages in hiring high-skilled local talent. Foreign investment into Indonesia’s digital ecosystem will rise.

OPEC+ cuts to hit Russian external surplus into 2021

2020 ◽  
Keyword(s):  
Foreign Investment ◽  
Fourth Quarter ◽  
Economic Recovery ◽  
Private Capital ◽  
Productive Capacity ◽  
Russian Government ◽  
Government Bonds ◽  
Foreign Investors ◽  
Content Type

Significance Foreign investment slowed, private capital flowed out and geopolitical risk and ruble depreciation dented foreign investors' appetite for Russian government bonds. Impacts The economic recovery expected to start in the fourth quarter is likely to be undermined by an unconstrained rise in COVID-19 infections. Ruble weakness is contributing to inflation, though this may be temporary as disinflationary forces are strong. Ruble depreciation is raising the prices of imported machinery, deterring investment in productive capacity.

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