Indonesia and Taiwan setting up Special Economic Zone in North Indonesian Island

Susilo Bambang Yudhoyono, the president of Indonesia has just approved a proposal to establish a special economic zone in one of Indonesia's Northernmost islands and where a joint development project with Taiwan is occurring, in Morotai.

The representative of the Taipei Economic and Trade Office Indonesia, announced that Indonesia and Taiwan will hold a meeting next week to discuss details of the joint development project, where one or two priority sectors will be selected to start off with - possibly agriculture and tourism.

The big 6 Asian markets of 2014

Yesterday, BlackRock released its investment outlook for Asian equities and credit, where it was reported Indonesia, China, India, Japan, Korea and Taiwan are the significant markets to watch during the latter half of this year.

This is as it was claimed structural reforms remain to dominate the agenda and outlook for stock markets across the region.

China

The head of Asian equities at BlackRock claimed that the Chinese leadership continues to motivate the domestic reforms process, as there has been added value and risk as the year has progressed. This is particularly in the energy and industrial sectors.

India

The election win of the BJP may access India’s potential by rebooting its investment cycle. The decisive election result may improve government decision making and execution, which in turn would boost investment in energy and infrastructure, opening more employment opportunities.

Korea and Taiwan

According to a representative from BlackRock, Korea and Taiwan should be beneficiaries of global and improved export growth.

Japan

Japan remains to add liquidity even as the economy absorbs the increase in consumption taxes. Investors should expect more reform progress.

Indonesia

The market has delivered exceptional returns so far during 2014. However, Indonesia is currently under elections, with market positioning, valuations, plus the risk of negative surprise subsequent of the upcoming July elections adding some caution. Although, any sell-off following the election would be a buying opportunity.

International tyre maker opening plant in Indonesia

Taiwanese Cheng Shin Rubber Industry Company, one of the country’s leading tyre suppliers, have announced they will invest US$300million in constructing a plant in Indonesia.

The construction is scheduled to commence early next year, with operations expected to begin production towards the end of the same year. The company is to target the Indonesian domestic market rather than exports, as revealed by the Cheng Shin President during a yearly general meeting for share holders.

The automotive market of Indonesia is said to be rapidly growing, encouraging Cheng Shin's clients to request towards the Taiwanese supplier to establish local production lines.

It was informed that the company's shareholders with Cheng Shin, plans to use the Indonesian market as a springboard to enter other Muslim markets.

A fund raising campaign is also to aid for the Indonesia investment.

When the Indonesia factory becomes operational, there are plans for a wider global production base in Asia, including plants in China, Taiwan, Thailand, and Vietnam.