NOVEMBERASIA BUSINESS OUTLOOK8INDONESIA LOGS IN $3.4 BILLION TRADE SURPLUSIMOTION AUTOMOTIVE SEEKING TO RAISE $100 MILLION IN IPOIndonesia saw a trade surplus of $3.48 billion last month, exceeding expectations, as both exports and imports decreased less than anticipated, according to official data released on Wednesday. This has led to speculation that the central bank may decide to maintain current interest rates next week. The October trade surplus was unexpected, coming in at $4 billion instead of the $3 billion that economists had predicted in a Reuters poll. This surplus will be taken into account by Bank Indonesia (BI) as it evaluates monetary policy in November.The value of shipments from the largest economy in Southeast Asia has been decreasing in recent months due to the decline in global commodity prices. Nevertheless, the country, abundant in resources, has maintained a trade surplus, albeit smaller than the previous year, due to a decline in imports. Since May 2020, Indonesia has consistently achieved a surplus every month.In a surprise move last month, the central bank resumed raising interest rates in order to protect the declining value of the rupiah. This brings the total rate increases since August 2022 to 250 basis points (bps). According to Bank Danamon's economist, Irman Faiz, the trade data for October indicates a strengthening of domestic demand despite a decrease in exports.He said that the surplus and the rupiah's appreciation of over 1 percent on Nov 15 should be enough to persuade BI to maintain its benchmark rate unchanged next week. Two sources with direct knowledge of the matter have revealed that iMotion Automotive Technology, a Chinese self-driving firm, is set to launch its Hong Kong initial public offering (IPO) at the end of November with a target of raising $100 million. According to Reuters in June, the company was among the first to be granted approval by China's securities regulator for conducting an overseas share sale following the implementation of new rules in March.iMotion, founded in 2016, did not promptly reply to a request for comment from Reuters.The sources could not be identified because the information had not been officially disclosed. The firm warned that its plans could change due to the ongoing volatility in global financial markets caused by high inflation and elevated world interest rates. iMotion initially aimed to raise $300 million, as reported by Bloomberg News in March, but has since reduced its fundraising goal.In early October, state media reported that China plans to support companies in the smart vehicle supply chain in forming dedicated groups to enhance innovation. This is part of China's efforts to establish standards for assisted and autonomous driving functions by 2025. The world's biggest auto market is said to be China.According to LSEG data, new share sales in the first three quarters of 2023 have decreased by 32.5 percent, making it one of Hong Kong's worst years for IPOs in recent history. The deal will help to bring some balance to this challenging trend.. NEWSROOM
< Page 7 | Page 9 >