Our Financial Columns offer analyses of subjects related to the Indonesian financial markets. Together, these columns - that also have high news value in the current state of the Indonesian economy - intend to provide a clear and detailed picture regarding the structure and performance of these markets.
Bitcoin has been around since early 2009. Its popularity has increased, and many other similar assets have been launched. You have likely heard of this new class of assets, and you are considering embracing it.
The Energy and Mineral Resources Ministry of Indonesia reported that government spending on energy subsidies in full-2022 reached IDR 157.6 trillion (or approx. USD $10.5 billion), well below the target that was set by the central government for 2022 (namely at IDR 211.1 trillion or approx. USD $14.1 billion). So, this certainly is good news for the government’s budget balance.
Based on a statement made by Indonesian Coordinating Minister for Maritime and Investment Affairs Luhut Panjaitan in late-January 2023, Indonesian President Joko Widodo agreed to a scheme where Indonesians can enjoy an IDR 7 million (approx. USD $475) subsidy when buying a new electric motorcycle. Reportedly, this scheme is to be imposed in February 2023.
At the latest annual meeting of Indonesia’s central bank (Bank Indonesia), this lender of last resort presented a white paper on the digital rupiah (central bank digital currency, or CBDC). Just like what is happening abroad (and likely also in response to the rise of cryptocurrencies), Bank Indonesia is eager to launch a digital rupiah, possibly ultimately aiming to gradually phase out the use of physical money (notes and coins).
