Bank Indonesia memprediksi bahwa realisasi pertumbuhan kredit akan mencapai 9-10% pada basis year-on-year (y/y) di 2015, di bawah targetnya pada 11%-13% (y/y). Sampai dengan Oktober 2015 pertumbuhan kredit bank-bank di Indonesia mencapai 10,4%, melambat dari 11,1% di bulan sebelumnya. Juda Agung, Direktur Eksekutif Kebijakan Ekonomi dan Moneter Bank Indonesia (BI), mengatakan pertumbuhan kredit yang melambat sejalan dengan perlambatan ekonomi.

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Sesuai dengan prediksi dan kecenderungan umum sepanjang tahun ini, penjualan mobil Indonesia turun 4,4% menjadi 87.311 unit pada bulan November 2015. Pada periode Januari-November 2015, total penjualan mobil di negara itu mencapai 940.317 unit, turun 16,7% dari penjualan mobil di periode yang sama tahun lalu. Penyebab utama dari performa yang lemah ini adalah melemahnya daya beli masyarakat Indonesia akibat perlambatan ekonomi negara ini, inflasi yang tinggi (dalam tiga kuartal pertama tahun ini), dan harga komoditi yang rendah.

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The Asian Development Bank (ADB) lowered its forecast for economic growth in Indonesia to 4.8 percent year-on-year (y/y) in 2015 and to 5.3 percent (y/y) in 2016 from previously 4.9 percent (y/y) and 5.4 percent (y/y), respectively. In its latest report on Indonesia, the ADB cited that problems related to budget disbursement and the nation’s weak export performance were the main factors to cut its growth projection for Indonesia - for both 2015 and 2016 - by 0.1 percentage point. In September 2015, the ADB had already cut its growth forecast for Indonesia on the back of negative effects of China’s economic slowdown.

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Ceramic sales in Indonesia are projected to decline to IDR 25 trillion (approx. USD $1.8 billion) in 2015 from total sales worth IDR 36 trillion last year. Elisa Sinaga, Chairman of the Indonesian Ceramic Industry Association (ASAKI), said 2015 is a year full of challenges for the domestic ceramic industry due to Indonesia's slowing economic growth (particularly the slowdown of the nation's property sector), high gas prices, higher minimum wages, and the fragile rupiah (having depreciated around 11 percent against the US dollar so far in 2015).

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One advantage of Indonesia's non-optimal government spending is that it somewhat covers for the shortfall of tax revenue that is expected to occur in 2015. The shortfall in tax collection may reach up to IDR 250 trillion (approx. USD $18 billion) and this failure to meet the government's tax collection target in the 2015 State Budget was the reason behind the resignation of Sigit Priadi Pramudito as Director General of Indonesia's Tax Office. But with government spending estimated to reach only about 90 percent of this year's target, the budget deficit should not go beyond the 2.7 percent of gross domestic product (GDP) mark.

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The Investment Coordinating Board (BKPM), the investment service agency of the Indonesian government, claims it has prevented about 24,500 of layoffs through its special desk for footwear and textile industries. This special desk is an agency set up by the BKPM in early October 2015 to support local companies in the footwear and textile industries as these industries are considered most affected by the country's economic slowdown. BKPM Chairman Franky Sibarani said a total of 48 companies have requested support through this special desk.

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RSM Indonesia, one of Indonesia's leading audit, tax and financial advisory firms, expects to see more mergers and acquisitions (M&A) in Indonesia in 2016 due to the improving global and domestic economic conditions, a stable rupiah exchange rate, and Indonesian's growing purchasing power. For foreign investors a M&A deal is one of the strategies to enter Indonesia. Up to early November, the total value of M&A deals in Indonesia in 2015 stood at USD $3.53 billion.

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Both the Center of Reform on Economics (Core) and Aberdeen Asset Management Ltd expect economic growth in Indonesia to accelerate in 2016 after Southeast Asia's largest economy may post a seven-year low GDP growth figure of 4.7 percent in 2015. Both institutions believe that household and government spending will accelerate next year, while recently unveiled economic stimulus packages (involving deregulation and tax incentives) will create a more attractive investment climate, thus both foreign and domestic investment is expected to grow.

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The central bank of Indonesia (Bank Indonesia) expects the country's economic growth to come in the lower end of its 4.7-5.1 percent (y/y) gross domestic product (GDP) growth target range for full-year 2015. Bank Indonesia Governor Agus Martowardojo expects to see accelerated economic growth in the last quarter of the year (from the preceding quarter) due to increased government spending and investment. In the second quarter of 2015, Indonesia's economy expanded at the slowest pace in six years (+4.67 percent y/y), then accelerating to 4.73 percent (y/y) in the following quarter.

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In line with rising tourism in Indonesia, the value of hotel construction in Southeast Asia's largest economy is expected to grow 16 percent to IDR 21 trillion (approx. USD $1.6 billion) in 2016. Most of the new projects - roughly 21 percent - are located in the Greater Jakarta area. Besides tapping the tourism potential, hotel developers also want to tap the business potential, meaning that due to expected accelerated economic growth in 2016, there will arrive more foreign businessmen in Indonesia to attend meetings and other activities, particularly as the ASEAN Economic Community comes online.

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Thomas Lembong, Head of Indonesia's Investment Coordinating Board (BKPM), said the 5.01 percent year-on-year (y/y) economic growth pace of Indonesia in the second quarter of 2017 was rather disappointing as consumption remained bleak. Only Indonesia's export and investment realization showed an improvement, Lembong added. But, overall, Indonesia's economic growth stagnated.

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After concluding its monthly two-day policy meeting on Thursday (20/07) the central bank of Indonesia (Bank Indonesia) decided to leave its interest rate environment unchanged. The BI 7-day (Reverse) Repo Rate (BI-7 day RR Rate) was kept at 4.75 percent, while the deposit facility and lending facility rates were kept at 4.00 percent and 5.50 percent, respectively.

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The latest World Bank projection shows the economy of Indonesia remains promising despite the Washington-based institution having lowered its forecast for Indonesia's full-year 2017 gross domestic product (GDP) growth by 0.1 percentage point to 5.2 percent year-on-year (y/y) in the June 2017 edition of its Global Economic Prospect. The World Bank emphasized the Indonesian economy remains relatively strong and is among the most promising emerging markets.

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The central bank of Indonesia (Bank Indonesia) maintained its benchmark interest rate - the 7-day reverse repurchase rate - at 4.75 percent at the policy meeting on 17-18 May 2017, a decision that is in line with analysts' forecasts. Bank Indonesia said the decision is consistent with its efforts to maintain macroeconomic and financial system stability "by driving the domestic economic recovery process", while continue to monitor external threats stemming from US policy directions and geopolitical conditions, specifically in the Korea Peninsula, as well as domestic threats stemming from inflationary pressures and ongoing consolidation in the banking and corporate sectors.

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Overall, market participants are satisfied with Indonesia's economic growth in the first quarter of 2017. Indonesia's Statistics Agency (BPS) released the nation's official first quarter gross domestic product (GDP) data on Friday (05/05). It showed a 5.01 percent year-on-year (y/y) growth pace in Q1-2017, in line with - and even above some institutions' - expectations. Moreover, the figure confirms that Indonesia's economic growth continues to accelerate. In the first quarters of 2015 and 2016 GDP growth was recorded at 4.71 percent (y/y) and 4.92 percent (y/y), respectively.

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The central bank of Indonesia (Bank Indonesia) kept its benchmark interest rate (seven-day reverse repo rate) at 4.75 percent at the April policy meeting (19-20 April 2017), while its deposit facility rate and lending facility rate stayed at 4.00 percent and 5.50 percent, respectively. Bank Indonesia considers the current interest rate environment appropriate to face global uncertainties as well as rising inflationary pressures at home.

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Whether it was caused by pressure from the Indonesian government, or, whether US multinational banking and financial services firm JP Morgan Chase itself came to the conclusion that its decision to double downgrade Indonesia from overweight to underweight (in November 2016) was excessive remains unknown. What is known is that JP Morgan upgraded its investment recommendation on Indonesian stocks to neutral from underweight on Monday (16/01). Main reason for this upgrade is that redemption and bond volatility risks have now played out, in the view of JP Morgan.

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Having an office in the center of Jakarta is usually an ambition of foreign and local businessmen in Indonesia. An office in Jakarta's Central Business District, the heart of the capital, is a strategic location (located close to the headquarters of numerous other companies that are active in Indonesia) and it adds a certain status to your company even though you will have to battle severe traffic congestion each time you visit or leave the office (but it is fair to say that also in the other parts of Jakarta traffic is immense).

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The government of Indonesia suspended all cooperation with US multinational banking and financial services firm JP Morgan Chase after the US bank double downgraded Indonesia from overweight to underweight without elaborating too much on the exact motives behind this drastic move. According to Indonesian government officials this downgrade is excessive and lacks evidentiary support or rational justification. Moreover, they argue this "misleading" downgrade has a big psychological impact on investors and therefore it "disturbs Indonesia's financial stability".

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American multinational finance company Goldman Sachs Group Inc believes Indonesia currently has strong enough economic fundamentals to cope with monetary tightening in the USA. Indonesia is in a better position now compared to 2013 when the taper tantrum (the winding down of the US Federal Reserve's quantitative easing program) led to massive capital outflows from emerging markets (and Indonesia was among the biggest victims with the rupiah weakening more than 25 percent against the US dollar in 2013).

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