Trade deficit could widened this year in Indonesia

Trade deficit could widened this year

According to the Minister of Trade, Gita Wirjawan, trade deficit could reach US$3bn in 2013 if the government does not do anything significant to reduce fuel subsidy consumption. Moreover, the figure is higher compared to last year’s trade deficit of US$1.66bn (Kontan).  

Plan to limit plantation area to 100,000ha

There is some news that revised Indonesian plantation regulation, which is expected to be issued in near term, would limit plantation area to 100,000ha for every group/holding. The news said that this matter is not retroactive. (Kontan).

Comment: We still wait for the formal announcement. we think this matter would impact to the expansion plan of Indonesian plantation companies, which recently has become very slow pace. The limitation may bring good impact to CPO price in the next 4 years, when the CPO supply growth is limited.