Trump’s Comeback Redefines Global Market, KFC Indonesia's Forcing 47 Outlet Closures, Indonesia's VAT Rising to 12%, OpenAI Employees Gain US$1.5 Billion SoftBank Deal
By Fayza Nawra Avanitanya, Muthia Noor Safitri, Kenzie Aryasatya, Imam Fakhri Prayogo Harionto
November 29, 2024 at 16:30 GMT+7
Trump Campaign Rally Car in Gastonia, North Carolina | Source: Megan Varner/Reuters
A potential Trump victory in 2024 could boost the US dollar through pro-growth policies, rising interest rates, and a tolerance for higher inflation, attracting global investors. Protectionist trade measures may slow growth in Europe and Asia, strengthening the dollar’s safe-haven appeal but pressuring emerging market currencies. US sectors like technology, defense, and fossil fuels might gain from deregulation and tax cuts, while trade tensions with China could hurt agriculture.
Traditional energy may benefit from regulatory rollbacks, but higher Treasury yields and shifts in sustainable investment priorities could disrupt global markets and pose challenges to ESG initiatives.
KFC Indonesia outlet in Surabaya | Source: IDN Times
KFC Indonesia reported Rp555.08 billion in losses for the third quarter of 2024, prompting the closure of 47 outlets. These losses stemmed primarily from the lingering effects of Covid-19 and boycotts linked to the ongoing Middle Eastern conflict.
Facing such staggering losses, the company urgently implemented a cost-cutting strategy to manage expenses. The reduction in operational outlets underscores the chain’s struggle to navigate the challenging economic climate, highlighting the significant adaptations businesses must undertake to withstand prolonged economic pressures and sustain operations in turbulent times.
Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati | Source: Kementerian Keuangan
Indonesia plans to raise its VAT rate to 12% by 2025, aligning with the Philippines, which currently holds the highest VAT rate in ASEAN. Enacted under the Harmonization of Tax Regulation Law (UU HPP), this policy aims to bolster fiscal stability, support the state budget, and fund public services amid ongoing economic challenges.
While neighboring countries like Cambodia, Malaysia, Laos, and Vietnam maintain a 10% VAT rate, and Singapore recently increased its GST to 9%, Indonesia’s move underscores its reliance on VAT and luxury goods taxes as key revenue sources for sustainable fiscal management and economic resilience.
OpenAI CEO Sam Altman | Source: AFP/Getty Images
OpenAI Employees Cash In on US$1.5 Billion SoftBank Deal
SoftBank’s Vision Fund 2 is acquiring US$1.5 billion in OpenAI shares through a tender offer targeting employee-owned stock, valuing the AI company at US$157 billion. The deal provides OpenAI employees with liquidity while bolstering the company’s financial position amid growing competition in the AI sector.
SoftBank views the investment as a strategic alignment with its growth-focused strategy and OpenAI’s potential for a future IPO. Employees have until December 24 to decide on participating in the tender offer, highlighting the high stakes for stakeholders in this transformative AI-focused partnership.
Sources:
CNBC
Bloomberg
Reuters
WSJ
Comments