The central bank of Indonesia (Bank Indonesia) announced that the nation's foreign exchange reserves had fallen to USD $119.8 billion (per end June 2018), thus declining USD $3.1 billion compared to the position in the preceding month. As such, the recent trend continued: Indonesia's foreign exchange assets have now fallen for five straight months after touching a record high of nearly USD $132.0 billion in January 2018 (see table below).

Lanjut baca ›

Risk perceptions on Indonesian debt have risen amid concerns over the fragile rupiah. So far in 2018 the Indonesian rupiah has depreciated around 6 percent against the US dollar due to US monetary tightening and simmering concerns over the outbreak of a global trade war. Waning risk perception is reflected by the rising credit default swap (CDS) of the five-year Indonesian bond.

Lanjut baca ›

The central bank of Indonesia (Bank Indonesia) hiked its benchmark interest rate three times over the past six weeks - by a total of 1.00 percent to take the benchmark to the level of 5.25 percent - in order to defend the rupiah. Last Friday (27/06) Bank Indonesia surprised part of the market by implementing a 0.50 percent rate hike. As a result, the rupiah strengthened markedly. However, its impact on the rupiah performance seems very temporary. This week the rupiah is again depreciating, hovering around the IDR 14,400 per US dollar level.

Lanjut baca ›

As we had predicted this morning, Bank Indonesia decided to raise its benchmark interest rate by 50 basis points (bps) to 5.25 percent at the two-day June policy meeting that was concluded earlier today. Presumably markets had been expecting a 25 bps rate hike (therefore being priced in already) and therefore the central bank of Indonesia possibly felt it had to take a more aggressive approach to defend the Indonesian rupiah that had weakened beyond the IDR 14,400 per US dollar level.

Lanjut baca ›

The Indonesian rupiah continues to slide on Friday (29/06) and is now hovering around the IDR 14,400 per US dollar level. The weak rupiah reaffirms analysts' expectations of seeing another interest rate hike. Today, the central bank of Indonesia (Bank Indonesia) will conclude its June policy meeting. But perhaps the crucial question is not "will Bank Indonesia raise its benchmark rate?" Possibly the more crucial questions are "by how much will it raise its rate?" and "what other policies will it implement to strengthen rupiah stability as well as financial stability?"

Lanjut baca ›

Asian stocks and emerging market currencies continue to be under pressure on Thursday morning (28/06) amid uncertainty regarding US authorities' stance on Chinese investment in US tech companies, ongoing concerns over the impact of simmering global trade woes on economic growth, and rising crude oil prices. However, as we approach the lunch break there are some signs of a rebound in Asian markets.

Lanjut baca ›

While Asian markets are mixed on Wednesday morning (20/06), Indonesia's benchmark Jakarta Composite Index plunged 2 percent (to a four-week low) in the first five minutes after trading resumed after the long Eid al-Fitr holiday. Indeed a lot happened on the global stage since Indonesian markets closed on Friday 8 June 2018 that has not been absorbed by Indonesian assets. Therefore, today it is catch-up day for investors.

Lanjut baca ›

In line with expectations the central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate - the BI seven-day reverse repo rate - by 25 basis points to 4.75 percent in an unscheduled meeting on Wednesday (30/05). In combination with the scheduled monthly policy meeting on 16-17 May 2018, Bank Indonesia raised the benchmark interest rate by a total of 0.50 percent this month.

Lanjut baca ›

While most Asian shares are in red territory amid some risk aversion, Indonesia's benchmark Jakarta Composite Index is skyrocketing on Thursday (24/05). In the first trading session of the day the benchmark index of Indonesia soared 2.39 percent to 5,930.13 points as foreigners are back to enjoy bargain hunting (before the start of trading today, the Jakarta Composite Index had weakened nearly 9 percent since the year-start).

Lanjut baca ›

While most Asian stocks (as well as US and European stock futures) are in green territory on Monday (21/05) on the back of easing concerns about a potential global trade war (led by the US and China), Indonesian assets remain under pressure. Over the weekend, US Treasury Secretary Steven Mnuchin said the US-China trade war is "on hold" following both sides' agreement to suspend any tariff threats for now. This has a positive impact on global markets.

Lanjut baca ›

Indonesia's benchmark stock index (IHSG) was not able to continue its rebound. On Friday (15/11), the IHSG fell 0.73 percent to 4,335.45 points amid widespread profit taking. Foreign investors recorded net selling of IDR 193 billion (USD $16.9 million) on today's trading day. Moreover, investors are concerned about the impact of the higher interest rate of the central bank (7.50 percent), particularly on the property and banking sectors in the fourth quarter of 2013.

Lanjut baca ›

Despite rising concerns about the slowing pace of the Indonesian economy, the deputy minister of Finance Bambang Brodjonegoro reminded investors that Indonesia's economic growth in the third quarter of 2013 still constitutes one of the highest growth rates around the globe. Economic expansion in Q3-2013 slid to 5.6% in Southeast Asia's largest economy. With the exception of China (7.8% GDP growth in Q3-2013), Indonesia's growth continues to outpace growth in other emerging markets, such as Brazil (3.3%) and Turkey (4%).

Lanjut baca ›

Seperti yang kami sampaikan sebelumnya dimana pelemahan terbatas akan sulit tercapai dengan negatifnya sentimen yang justru datang dari dalam negeri. Aksi jual masih dimungkinkan akan berlanjut dan akan berpengaruh pada masih melemahnya IHSG. Laju IHSG bukannya membaik, justru semakin anjlok. Tampaknya pelaku pasar, terutama asing, memanfaatkan rilis kenaikan BI rate tersebut untuk jor-joran melakukan aksi jual. Rilis kenaikan BI rate tersebut tampak menjadi pembenaran dilakukannya aksi jual besarbesaran tersebut.

Lanjut baca ›

Laju IHSG yang awalnya hanya melemah tipis dan mencoba untuk rebound, jelang sore hari berubah menjadi pelemahan setelah dipersuram oleh hasil RDG BI yang menaikkan BI rate dari level 7,25 persen menjadi 7,5 persen. Kenaikan BI rate ini tentunya dipersepsikan bahwa kondisi makroekonomi Indonesia yang belum akan membaik dan terutama timbul juga penilaian bahwa masih akan tingginya inflasi hingga akhir tahun.

Lanjut baca ›

Bank Indonesia decided to raise the BI rate by 25 bps to the level of 7.50 percent, with the Lending Facility rate and Deposit Facility rate raised to 7.50 percent and 5.75 percent respectively. This policy was taken in light of the persistently large current account deficit amid widespread global uncertainty. Therefore, the decision was taken in order to ensure that the current account deficit is reduced to a more sound level and inflation in 2014 returns to around 4.5±1 percent, thereby supporting sustainable economic growth.

Lanjut baca ›

The Jakarta Composite index (Indonesia's benchmark stock index or IHSG) fell on Monday (11/11) amid mixed Asian markets. Not even positive finishes on Wall Street last Friday (08/11) were able to support the IHSG. Most investors seem to be waiting for results of Bank Indonesia's Board of Governor's Meeting which is scheduled for Tuesday (12/11). This meeting will provide answers about the central bank's view of the domestic economy and whether it thinks another adjustement of the BI rate is necessary.

Lanjut baca ›

ICRA Indonesia, an independent credit rating agency and subsidiary of ICRA Ltd. (associate of Moody's Investors Service), publishes a monthly newsletter which provides an update on the financial and economic developments in Indonesia of the last month. In the October 2013 edition, a number of important issues that are monitored include Indonesia's inflation rate, the trade balance, the current account deficit, the IDR rupiah exchange rate, and gross domestic product (GDP) growth. Below is an excerpt:

Lanjut baca ›

Indonesian car sales have already exceeded the one million mark in October 2013. In the January-October period, 1,018,786 car units were sold, a ten percent increase compared to car sales in the same period last year. Growing demand for cars in Indonesia indicates that this sector of Southeast Asia's largest economy is not influenced by current negative market sentiments, such as the sharply depreciated Indonesian rupiah exchange rate (against the US dollar), high inflation (8.32 percent yoy in October 2013), and slowing economic growth.

Lanjut baca ›

Contrary to most Asian indices, Indonesia's Jakarta Composite Index (IHSG) managed to post a gain on Thursday (07/11). The IHSG seemed to follow the upward movement of Wall Street on the previous day (06/11) after a number of Federal Reserve officials stated to support the continuation of the Fed's monthly USD $85 billion bond-buying program (quantitative easing). Despite continued foreign net selling, the IHSG index rose 0.82 percent to 4,486.11 points as domestic purchases offset foreign selling.

Lanjut baca ›

Indonesia will most likely not meet its original GDP growth target of 6.3 percent (stipulated in the 2013 State Budget). Yesterday (06/11), it was announced by Statistics Indonesia that Indonesia’s GDP growth figure in the third quarter of 2013 was recorded at 5.62 percent (year-on-year, yoy), the weakest quarterly growth figure since 2009 when the global financial crisis impacted on Southeast Asia’s largest economy. In 2013, Indonesia feels the global impact again, in combination with domestic factors.

Lanjut baca ›