• Minimum Wages Indonesia: Ahok & Jakarta’s Minimum Wage Growth

    Acting Jakarta Governor Basuki “Ahok” Tjahaja Purnama said that the minimum provincial wage for Jakarta (Upah Minimum Provinsi) will not exceed IDR 2.7 million (USD $221) in 2015. This new minimum wage would mean a 10.3 percentage point increase from Jakarta’s current minimum wage of IDR 2.44 million (USD $200). According to the acting Governor, the new minimum wage would be above the needed salary to have an acceptable standard of living in the capital city of Indonesia (which Ahok puts at IDR 2.53 million or USD $207).

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  • Indonesia’s Balance of Payments (BoP) Improves in Q3-2014

    The balance of payments (BoP) of Indonesia, the widest measure of Indonesia’s financial balance with the rest of the world (encompassing all transactions between the country’s residents and non-residents involving goods, services and income), hit a surplus of USD $6.5 billion in the third quarter of 2014, up from the USD $4.3 billion surplus in the previous quarter. The surplus of USD $13.7 billion in the Q3-2014 financial and capital account offset the USD $6.84 billion current account deficit.

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  • Fitch Affirms Indonesia’s BBB-/Stable Outlook Investment Grade Status

    Global rating agency Fitch Ratings affirmed Indonesia’s Sovereign Credit Rating at BBB-/stable outlook (investment grade status) on Thursday (13/11). This rating affirmation by the credit rating agency can be regarded as international recognition of prudent fiscal policy in Southeast Asia’s largest economy amid global uncertain times. Policy responses pursued by both the government and central bank of Indonesia have been well received by Fitch Ratings and managed to safeguard economic stability.

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  • Update Indonesia: Interest Rate, Fuel Subsidies & Current Account Deficit

    The central bank of Indonesia (Bank Indonesia) announced today (after the Board of Governors’ meeting) that it keeps the benchmark interest rate (BI rate) at 7.50 percent. The lending facility rate and the deposit rate are maintained at 7.50 percent and 5.75 percent, respectively. Agus Martowardojo, Governor of Bank Indonesia, said that interest rates were maintained as the country’s current account deficit narrowed to 3.07 percent of gross domestic product (GDP) in the third quarter of 2014.

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