• Indonesian Coffee Export & Production Growing, Vietnam still Hoarding

    Indonesian coffee shipments to Europe have risen on the back of the weak rupiah and larger coffee harvest. Robusta bean exports from the island of Sumatra grew 22.1 percent year-on-year in June 2015. Meanwhile, European traders expect these strong shipments to continue into July. The Indonesian rupiah is the worst-performing emerging currency in Asia tracked by Bloomberg, weakening about 7.2 percent against the US dollar so far this year. The positive side of a weak currency is that the country's exports become more attractive.

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  • Indonesian Stocks & Rupiah Down on GDP Growth Concern & China Turmoil

    Indonesian stocks and the rupiah weakened further on Wednesday (08/07) due to the continuing fall of Chinese stocks (raising concerns about global economic growth) and the downward revision of the World Bank and Asian Development Bank (ADB)’s economic growth forecasts for Indonesia in 2015. Furthermore, global uncertainty brought about by the looming Greek exit (Grexit) from the euro continues to plague markets worldwide and makes investors prefer to wait for more certain times.

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  • World Bank Drastically Cuts Indonesia’s 2015 Economic Growth Forecast

    The World Bank cut its forecast for economic growth in Indonesia in 2015 from 5.2 percent year-on-year (y/y) to 4.7 percent (y/y) as private consumption, which accounts for about 55 percent of total economic growth in Indonesia, is estimated to weaken further in the second half of 2015 while government spending has been lower than expected (causing subdued fixed investment). Furthermore, persistent low commodity prices and tighter credit conditions provide further pressures that led to the extreme downward revision.

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  • Indonesia AirAsia: Shares of AirAsia Berhad Plunge after Suspension Threat

    After Indonesian authorities threatened to suspend the operating license of the Indonesian unit (Indonesia AirAsia) of Malaysia’s budget carrier AirAsia, shares of the latter (AirAsia Berhad) on the Kuala Lumpur Stock Exchange plunged over 12 percent on Wednesday morning (08/07). Indonesia AirAsia is among 13 Indonesian airlines that were found to have negative equity and were ordered by the Indonesian Transportation Ministry to turn this positive before 31 July 2015 in order to retain their operating licenses.

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