The latest in Indonesia

The benchmark index of Indonesia reached near a four week high yesterday, as foreign inflows raised select large-caps such as Bank Rakyat and Telkom Indonesia. This is before the presidential election on Wednesday.

Investors are anticipating the outcome of the 9^th July election, with a more visible political outlook set to revive interest for assets, brokers and fund managers.

According to Fidelity's FF Indonesia Fund’s portfolio manager, the outcome of the election is not expected to alter or affect the fund's long-term positive view of Indonesia. This is despite the currently levelled race between the two leading candidates, as both Joko Widodo and Prabowo Subianto have very similar agendas.

Jakarta's composite index increased to 1.2%, its highest since 11^th June, building on a 1.3% gain last week, when the first weekly gain in four was marked on the market.

The Indonesian rupiah reached a five-week high yesterday.

New international shipping link news - Davao/General Santos Philippine cities to Tahuna/Bitung Indonesia

A group of traders from the Davao and General Santos cities, Philippines are prepared to go on a trade mission to Manado, North Sulwesi, Indonesia. This is in order to conclude the details of the Davao City/General Santos City to Tahuna/Bitung (Indonesia) shipping route services that would commence next month.

The Indonesia’s PT Kanaka shipping line of MV Beverly will depart from Bitung, Indonesia, on 18^th July for the prepositioning of container vans which will be utilised for shipping services. This is according to the Mindanao Development Authority (MinDA) director of public affairs and investment promotions. The ship has a capacity of 120 twenty feet equivalent units or TEUs.

STR Global Hotel Reports - Asia Pacific

STR Global have reported hotels within the Asia Pacific region experienced positive results during May this year. The region's occupancy during the month grew by 3.2% to 67.6%; its daily average rate ended the month virtually flat with a 0.1% increase to US$115.10; with its revenue per available room increased by 3.3% to US$77.80.

The Philippines excelled by occupancy growth, increasing from 13.7% to 70.6%, owing to an increased demand of 17.6%. Indonesia also experienced positive growth rate during May, increasing by 10.7%. This is one of the highest increases of the Asia Pacific, principally motivated by Jakarta, increasing rates by 12.1%.

Highlights from significant market performers during May in local currency (year-over-year comparisons):

Jakarta is Indonesia's Number 1 Emerging City!

According to the latest from Chicago’s Emerging Cities Outlook (ECO) Index, Jakarta is now the number one rising city. The report looks at cities from low to middle income countries with a strong likelihood to progress over the next two decades, measuring from the business activity criteria, human capital performance and innovation indicators attracting business and talent.

Indonesia generally has been gradually more recognised by companies and their counterparts in foreign governments, as a growing influence in both global and regional business – as stated by a representative of AT Kearney. They continued onto explaining that Jakarta also has a significant demographic advantage alongside capital stability, security, environment and awareness contributing to the city becoming number one.

Jakarta is followed by Manila, the Philippines’ major financial, commercial and cultural hub, ranking second owing to its key advancement in human capital indicators, particularly in the availability and quality of healthcare. Kuala Lumpur, Malaysia was also in the top ten, based upon largely improved transparency and business activity and transparency. The ECO also reported the potential and probability of an emerging city to rise up and into the more prestigious Global Cities Index (GCI).

Beijing, China, stands out in making it on both the top tiers of the GCI and ECO Index, ranking 8^th and 12^th respectively. The city’s improved healthcare, increased business activity from Fortune 500 companies and performing engagement in politics, as well as its growing international education provisions and escalating IT sector, allowed it to climb six places from 2012.

Asia's Hotel Sector is Growing!

Just a reminder that Asia’s tourist and hotel sector is vibrant at the moment! Yes, that includes Indonesia! Bangladesh has the highest expected supply growth at a whopping +261.1% and Indonesia is one of the six Asian countries with over £30% room growth expected:

• Mongolia - +77.4%, with 975 extra rooms

• Myanmar - +67.5%, 4,109 rooms

• Sri Lanka - +51%, 5,204 rooms

• Bhutan - +46.7%, 78 rooms

• Indonesia - +35.7%, 53,100 rooms!

• Philippines - +30.7%, 13,078 rooms

Indonesia and Asia may need to you to search for your hotel commercial property on www.commercialpeople.co.id soon!