• Bank Indonesia Studies Relaxation of Loan-to-Value Ratio in Property Sector

    Bank Indonesia Studies Relaxation of Loan-to-Value Ratio in Property Sector

    Bank Indonesia, the central bank of Indonesia, is studying whether it should relax the loan-to-value (LTV) ratio for the purchase of a house through the house ownership credit scheme (in Indonesian: kredit pemilikan rumah, abbreviated KPR). Furthermore, Bank Indonesia may allow the KPR scheme for the purchase of a second house that is still under construction. These measures would be efforts to boost credit growth, particularly in the property sector, and boost overall economic activity in Indonesia.

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  • Indonesia Needs to Work Hard to Achieve 2016 Economic Growth Target

    Indonesia Needs to Work Hard to Achieve 2016 Economic Growth Target

    Indonesian President Joko Widodo has formed a task force that is tasked to monitor the full implementation of Indonesia's 12 economic policy packages throughout the nation. Since September 2015 the government of Indonesia has been unveiling a series of economic policy packages that include tax incentives, deregulation as well as logistics solutions with the overall aim of boosting economic growth. However, businessmen have complained about the weak implementation of these packages. This may also explain why Indonesia's economic growth in Q1-2016 was weaker-than-expected.

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  • World Bank: Indonesia Needs to Start Preparations for Ageing Population

    World Bank: Indonesia Needs to Start Preparations for Ageing Population

    Indonesia is currently blessed with a demographic bonus as around half of the population is below thirty years of age. Meanwhile, Indonesia's National Population and Family Planning Board (BKKBN) once stated that the number of Indonesians within the productive age group will be higher than the number of elderly people and children in the years 2025-2035. However, based on the latest research conducted by the World Bank, Indonesia will need to start preparations to deal with an ageing population.

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  • Financial Market Analysis Indonesia: Why is the Rupiah Weakening Today?

    Financial Market analysis Indonesia: Why is the Rupiah Weakening Today?

    The Indonesian rupiah was under pressure on Tuesday (24/05). Based on the Bloomberg Dollar Index, the rupiah depreciated 0.47 percent to IDR 13,638 per US dollar, the weakest level since early February 2016. However, the Indonesian rupiah is not the only emerging market currency in Asia that was under pressure today. Meanwhile, Asia's emerging market stocks also declined. Negative market sentiments are caused by growing speculation about a sooner-than-expected interest rate hike in the USA as well as sliding oil prices.

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