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View all search resultsThe case centers on PT Perusahaan Air Indonesia Amerika (PAIA), a foreign investment joint venture backed by investors from the United States, Singapore and Saudi Arabia, which alleged it had been unfairly treated by state-owned firm ITDC.
The rupiah's persistent depreciation is a structural consequence of over-reliance on volatile capital inflows to finance a chronic current account deficit, persistent saving–investment imbalances, lasting fiscal deficit and a narrow, commodity-dependent export base.
The current setup asks PLN to be planner, procurer and operator. That was useful in the past decades, but today it blurs incentives, slows competitive procurement and makes it hard for investors to price risk.
The government has set its sights on turning Bali into a global financial hub as it seeks to move forward with the family office plan thought up by the previous presidential administration, but there are doubts as to whether the resort island is cut out for such a role.
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