• World Bank: Brexit Won't Impact Negatively on Indonesia

    When the United Kingdom (UK) decided to leave the European Union (the so-called Brexit) through a referendum that was held on 23 June 2016, global markets were in shock. While these markets and the UK economy have recovered from the shock (although the pound remains near a 30-year low and Britain lost its AAA rating implying that the cost of government borrowing becomes higher) there are still some concerns about the (negative) impact of Brexit on emerging market economies in Asia, including Indonesia.

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  • Property Sector of Indonesia to Strengthen in 2017?

    More and more signs point toward a strengthening property sector in Indonesia. In the third quarter of 2016 the property sector has seen more activity, a trend that is expected to continue into the fourth quarter and in 2017. Stanley Ang, Chief Marketing Officer at urban development company Lippo Cikarang, said this development is partly supported by the government's tax amnesty program and the lower interest rate environment in Indonesia as well as Bank Indonesia's decision to ease the loan-to-value (LTV) ratio.

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  • Indonesia Stock Market & Rupiah Update: Leading Declines in Asia

    Indonesian assets are leading declines in Asia on Wednesday's trading day (05/10) as (global) markets are digesting the latest reports that the European Central Bank (ECB) may withdraw its bond buying program, while statements from US Federal Reserve officials strengthened the case for a Fed Funds Rate hike before the year-end. Lastly, the International Monetary Fund (IMF) cut its forecast for US economic growth in 2016 to 1.6 percent (y/y) from its earlier estimate of 2.2 percent (y/y).

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  • World Bank Releases East Asia and Pacific Economic Update

    In its latest East Asia and Pacific Economic Update, titled "Reducing Vulnerabilities", the World Bank stated that it projects Indonesia's gross domestic product (GDP) to grow by 5.1 percent (y/y) in 2016 and 5.3 percent (y/y) in 2017 mainly supported by rising private consumption, a relatively stable rupiah rate, fiscal support (including higher personal income tax threshold), and accelerating government spending. Overall, the World Bank expects growth in developing East Asia and the Pacific to remain resilient over the next three years.

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