Indonesia is expected to record year on year (YoY) economic growth of 5.1 per cent this year amid increasing exports and investment, Bank Indonesia (BI) has announced.

BI Governor Agus Martowardojo said economic conditions in 2017 were better than in 2016, although the recovery was slow.

Gross domestic product (GDP) growth in the first, second and third quarters ranged between 5.01 per cent and 5.06 per cent YoY, slightly better and more stable than growth of 4.92 per cent to 5.18 per cent yoy in the corresponding periods of last year.

“Looking at the growth in the previous quarters, we may end this year with nearly 5.1 per cent growth,” he said during a visit on Friday to the Mount Agung observation post in Rendang district in Karangasem regency, Bali.

Pointing to investment growth of 7.11 per cent yoy and export growth of 17.27 per cent yoy in the third quarter, the governor noted that those two segments would support economic growth in the final quarter of the year. Household spending, however, remains the crucial factor.

“Consumption is still a dominant factor for our economy. It contributes 55.68 per cent to the total GDP,” he said.

Growth in this segment has been stable throughout 2017. In the third quarter, household spending grew at a rate of 4.93 per cent yoy, compared to 4.95 per cent yoy in the second quarter and 4.93 per cent yoy in the first quarter. – The Jakarta Post

MIC invites proposals for import substitution

The Myanmar Investment Commission has invited companies to submit proposals for investments in import substitution industries, it said in a statement.

The Commission identified the industries in which it is most interested in encouraging import substitution. They are: auto and auto parts, tractors and trailers, telephone and telecom equipment, machines and machine parts, power distribution and installation, iron and steel construction materials, fertilisers, plastic raw materials, paper, chemicals, edible oil, medical products and beauty products.

Myanmar now has to mainly import these products. The MIC will ensure the availability of land and electricity supply for investors.

For more information, interested persons can contact the MIC office in Yankin Township in Yangon.

According to the Commerce Ministry’s trade figures, the total trade volume reached US$22.61 billion up until December 15 this fiscal year. That is up $3.78 billion the same period over last year. Export values amounted to $9.75 billion while import value was equal to $12.86 billion. Myanmar has a trade deficit of over $3.1 billion. – Myanmar Eleven

Lao livestock export value rises despite high cost of beef

The price of beef continues to remain high due to short supply but the export value of livestock, mostly comprising buffalo and cattle, has increased.

In 2015, Laos earned about US$23.3 million (Bt764 million) from buffalo and cattle exports and the figure rose to $45.5 million last year, according to the Laos Ministry of Industry and Commerce.

This year, the country plans to earn $50.1 million from livestock exports, although only just over $26.4 million has been earned in the past nine months.

Vietnam is Laos’ largest export market for livestock. However, the price of beef is still high at 70,000-75,000 kip per kilogram at large markets in Vientiane, which is more than in Thailand and Vietnam.

Vientiane markets must import beef and bring in cattle from the provinces, especially from the south, to supply demand.

Vientiane alone needs at least 500 cattle to supply its slaughterhouses daily, according to the Vientiane Cattle Breeding and Entrepreneurs Association.

Local farms have only been able to meet about 10 per cent of the domestic market demand.

The government has not banned the export of livestock, believing this would have no impact on the economy or consumers, a senior agricultural official who asked not to be named told Vientiane Times recently.

However, the Ministry of Agriculture and Forestry is trying to encourage farmers and businesses to raise more livestock.

This year, the ministry is targeting 1.21 million head of buffalo and more than 2 million head of cattle.

Last year, the number of buffalo being farmed increased by about 4 per cent, comprising more than one million head, while the number of cattle increased by 9 per cent to 1.8 million head, the ministry reported.

The number of livestock farms grew by about 10 per cent last year on the previous year, up from 1,247 farms to 1,370 farms.

The ministry plans to enhance livestock breeding with a view to exporting 80,000-100,000 head of cattle and buffalo this year.

Livestock breeding methods are shifting from traditional practices to farming systems that are geared to industrial processing.

To promote livestock breeding and sustainable growth for domestic supply and export, the ministry is focusing on producing breeding pairs, animal feed, vaccine supply and disease treatment, animal management and movement, slaughterhouses and meat processing, and capacity building of veterinarians. – Vientiane Times

Money-losing Indonesian SOEs urged to consider mergers

Thirteen out of the 115 state-owned enterprises (SOEs) are projected to suffer financial losses to the tune of Rp 4 trillion (Bt9.7 billion) this year, with national carrier PT Garuda Indonesia and steel giant PT Krakatau Steel accounting for at least half of the sum. In comparison, the SOEs combined losses amounted to Rp 5 trillion last year.

Minister for State Enterprises Rini Sumarno blamed fierce competition and management troubles at some of the companies for the losses.

Some of them have suffered losses for years, she added, as reported by Tempo.

Garuda and Krakatau Steel would likely see their losses amount to more than Rp 1 trillion, Rini said at a meeting with the directors of 115 SOEs.

Garuda faced stiff price wars this year and some of its international routes were inefficient, she said.

Krakatau Steel struggled against Chinese products being dumped on the Indonesian market, Rini added.

Papermaker PT Kertas Leces, aircraft manufacturer PT Dirgantara Indonesia and PT Merpati Nusantara Airlines were the other big losers in 2017, she said.

Rini told the SOE directors to strive for efficiency and look for ways to merge some of the companies that are in the same line of business. – The Jakarta Post