Update COVID-19 in Indonesia: 115,056 confirmed infections, 5,388 deaths (4 August 2020)
5 August 2020 (closed)
USD/IDR (14,647) +60.00 +0.41%
EUR/IDR (17,355) +42.63 +0.25%
Jakarta Composite Index (5,127.05) +52.02 +1.03%
Every quarter we are very eager to learn the latest update of the Kontan CEO Confidence Index (KCCI). The KCCI is an index compiled by Kontan, an Indonesian newspaper and magazine that focuses on business and investment (and is part of the Kompas Gramedia Group). Each quarter, 30 chief executive officers (CEOs) of big Indonesian companies – covering a range of sectors - are surveyed. Their feedback is important because these CEOs are decision-makers in influential companies.
In various chapters in this report we have noted that external conditions are uncertain due to the ongoing tariff war between the United States and China and US President Donald Trump’s unpredictable style of leadership. These issues are expected to continue in 2019. Economists argue China could even lose a full percentage point of economic growth in 2019 if the current ceasefire in the tariff war falls apart and higher tariffs are imposed in 2019.
Monetary tightening in the USA suddenly does not seem to form a problem anymore. After four interest rate hikes in 2018, the US Federal Reserve now seems rather dovish and may only raise its benchmark interest rate twice in 2019. This could mean central banks in Asia – including Indonesia – will not have to drastically raise rates as they had done in 2018. This should then be positive for local economic growth. Moreover, a dovish Fed also implies less pressures on emerging market currencies, such as the Indonesian rupiah.
This articles discusses:
• the findings of the latest Kontan CEO Confidence Index survey, which involve CEOs opinions of national politics, external challenges, household consumption and more
Read the full article in the December 2018 edition of our monthly research report. You can purchase this report by sending an email to email@example.com or a WhatsApp message to the following number: +62(0)8788.410.6944