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March 14, 2017 edition

Capital movements in financial markets often carry surprises. In the first quarter of this year, the flow of funds into emerging markets grew rapidly. This is at a time when markets around the world were anticipating a rate hike from the US Federal Reserve later this month. Normally, when the Fed rate goes up, funds flow out of emerging markets.

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More Economy articles in other editions

March 7, 2017 edition

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February 28, 2017 edition

DWIAS Anandita relaxed with his three children at his home in Wido Martani, Yogyakarta. The rain that poured over Yogyakarta all last week forced him to delay his scheduled plan to dry out his harvest of black rice. He could only dry his grains at the entrance of his warehouse. "I can't dry it," said the owner of Pondok Alam, an online store.

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February 21, 2017 edition

Freeport Indonesia plans to cut its production and workforce. Concentrate-processing in Gresik has stalled due to a strike by employees demanding higher wages.

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February 14, 2017 edition

Pertamina CEO Dwi Soetjipto was seen pacing the floor of his third floor office at the headquarters of the state oil and gas company, last week. Assisted by his secretary, he gathered his personal documents and belongings. "Just tidying up," Dwi told Tempo last Thursday.
Several paintings, framed photographs, and books were arranged in boxes, ready to be delivered to his home in Pondok Indah, South Jakarta. Two days earlier, Dwi attended a farewell lunch with his staff.

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February 7, 2017 edition

Beef imported from India has entered the local meat market. Local cattle breeders and traders are struggling.

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January 31, 2017 edition

Short-term populist economic policies are increasingly dominating the world. One is protectionism. In his first days in office, US President Donald Trump immediately pulled his country out of the Trans-Pacific Partnership (TPP). Trump also invited Mexico and Canada to meet and reassess the North American Free Trade Agreement (NAFTA).
Indeed, protectionism benefits firms that enjoy the protection. But in the long run, inefficiencies and hidden costs will emerge, and that will rot the economy from the inside out. This is the danger that has economists and analysts around the world wringing their hands.

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