Our Financial Columns offer analyses of subjects related to the Indonesian financial markets. Together, these columns - that also have high news value in the current state of the Indonesian economy - intend to provide a clear and detailed picture regarding the structure and performance of these markets.
While we saw the highest monthly inflation rate (of the year) in December 2023, it was lower than we had projected. The latest data published by Indonesia’s Statistical Office (Badan Pusat Statistik, BPS) show that headline inflation reached 0.41 percent month-on-month (m/m) in December 2023.
In line with our projection, the central bank of Indonesia (Bank Indonesia) decided to raise its benchmark interest rate by 25 basis points (bps) to 6.00 percent after its October 2023 monetary policy meeting (held on 18-19 October 2023). Meanwhile, it also raised its deposit facility and lending facility by 25 bps, each, to 5.25 percent and 6.75 percent, respectively.
The central bank of Indonesia (Bank Indonesia) kept its benchmark interest rate at 5.75 percent at the two-day policy meeting on 20-21 September 2023. The lender of last resort also kept its deposit facility and lending facility rates at 5.00 percent and 6.50 percent, respectively.
Indonesian President Joko Widodo visited the Indonesia Stock Exchange (or IDX) on 26 September 2023 to inaugurate the Indonesian Carbon Exchange (abbreviated as IDXCarbon) and thereby enabling carbon trading. Through carbon trading Indonesia facilitates green financing in an effort to achieve its energy transition goals (which includes the net zero emissions target by 2060).
