The solution to limit consumption of diesel, that is regulated by Indonesia's oil and gas downstream regulatory agency is proving to be a burden for fishermen. Due to this new regulation, fishermen in Indonesia are made to queue all day to get diesel due to the limited amount of gas stations for fishermen.
Bank Indonesia estimates that the inflation rate in 2022 may exceed 6%, due to the increase in subsidized fuel prices. Inflation control efforts are currently underway, with cooperation from the central and regional government, as well as Bank Indonesia raising benchmark interest rates by 50 basis points.
Indonesia's Minister of Foreign Affairs, Retno Marsudi is optimistic that G20 leaders will attend the G20 summit this November. One of the issue prioritized in this summit, will be the availability of global supply of food and fertilizer.
The Indonesian government continues its push to boost the country's agricultural production, including efforts to increase the production of soybeans. But currently, Indonesia imports and nearly all of its supply of soybean are much cheaper. To help counter this, the Indonesian government will fix a set price for buying soybeans from local farmers.
Indonesian central bank, Bank Indonesia decided to raise its benchmark by 50 basis points to 4.25%.
To discuss more about the impact of the fed rate hike on the rupiah and markets in Indonesia. We'll talk with executive director of institute for development of economics and finance or INDEF, Tauhid Ahmad.
Indonesia's president Joko Widodo has inaugurated the completion of two sections of a new major highway in Jakarta, which is hoped to increase mobility, logistics transportation and also reduce traffic in the capital.