| Source: Bank Indonesia

Indonesian banks continue to post good financial results in the first six months of 2013. These banks include Bank Negara Indonesia, Bank Central Asia, Bank Mandiri, Bank Internasional Indonesia, all of which posted growth in net income between 15 and 30 percent.

An economist at the Deutsche Bank said that the rupiah may depreciate a further three to four percent and that Bank Indonesia’s benchmark interest rate (BI rate) could rise by an additional 75 to 100 basis points. Bank Indonesia raised the BI rate twice in the last two months in order to mitigate inflation and support the rupiah. Currently, the interest rate stands at 6.50 percent.

Growth of Regional Benchmark Stock Indices and Currencies

Country     Stock Index
United States         18.73%           -
Indonesia          7.93%       -4.84%
Japan         35,93%      -11.67%
Philippines         16.36%       -5.23%
Malaysia          7.03%       -4.67%
Thailand          6.09%       -1.77%
         5.84%       -2.93%
Singapore          2.18%       -3.35%
South Korea
China        -11.38%        1.61%

data taken from 1 January to 26 July 2013
Source: Bloomberg