• Economy of Indonesia: "GDP Growth in First Half 2017 below Estimates"

    The central bank of Indonesia (Bank Indonesia) expects the nation's gross domestic product (GDP) growth to be below earlier estimates in both the first and second quarters of 2017. However, the lender of last resort remains optimistic that Indonesia's full-year economic growth can reach a pace of 5.2 percent year-on-year (y/y), accelerating from 5.02 percent (y/y) in the preceding year.

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  • Indonesia Investments' Newsletter of 30 April 2017 Released

    On 30 April 2017, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economy-related such as foreign direct investment realization in Q1-2017, the possible impact of Trump's tax reforms on the Indonesian economy, monetary policy, the tire manufacturing, bilateral trade, and more.

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  • Monetary Policy Bank Indonesia: Easing the Minimum Statutory Reserves

    Following the announcement last year, the central bank of Indonesia (Bank Indonesia) has again stated that it is to ease the minimum statutory reserves (in Indonesian: giro wajib minimum) regulations for conventional local banks (both for rupiah and foreign-denominated currencies). With this looser approach, banks can manage their liquidity more effectively, which should lead to reduced volatility on the overnight money market ("interest rate buffer").

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  • Bleak Q1-2017 Foreign Direct Investment Growth in Indonesia

    According to the latest data of Indonesia's Investment Coordinating Board (BKPM), growth of foreign direct investment (FDI) in Indonesia in the first quarter of 2017 was recorded at a modest pace of 0.9 percent year-to-year (y/y) to IDR 97 trillion, sliding further from a growth pace of 2.1 percent (y/y) in the preceding quarter. Declining FDI is attributed to the ethnic and religious tensions in Jakarta (surrounding the 2017 Jakarta gubernatorial election) as well as persistent global uncertainties. The FDI data exclude investment in the country's banking and the oil & gas sector.

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