A discount war ahead of Lebaran, the traditional celebration that follows after the holy fasting month of Ramadan is finished and when many Indonesians go back to their place of origin for a few days, is expected to spur car sales in July. It is a normal phenomenon that car sales increase ahead of Lebaran because an amount of people need a new car to carry them back to their places of birth. But this year the increase in car sales is expected to exceed sales figures in previous years as wholesalers use discount actions to reduce their car stockpiles.

Lanjut baca ›

Standard Chartered Bank expects economic growth in Indonesia in 2013 to remain robust at 6.2%. The bank believes this is a realistic assumption amid global economic uncertainty and higher subsidized fuel prices which limits people's purchasing power. The greatest pillar of support for Indonesia's GDP growth is domestic consumption, and which is supported by Indonesia's demographic composition as the country not only has a large population (over 240 million people), but also a young one (half of the population is below thirty years of age).

Lanjut baca ›

In its latest report, titled Asian Development Outlook Supplement, the Asian Development Bank (ADB) has downgraded its forecast for economic growth in both 2013 and 2014 for developing Asia due to weak demand from industrial countries and slowing economic growth in China. The ADB revised down its growth forecast for developing Asia by 0.3 percent to 6.3 percent in 2013 and 6.4 percent in 2014. The Manila-based development bank also expects commodity prices to fall sharper than previously estimated. 

Lanjut baca ›

After the World Bank signaled slowing economic growth in Indonesia, American multinational financial services corporation Morgan Stanley also detects problems in Southeast Asia's largest economy. According to Jonathan Garner, chief Asia and emerging-market strategist for Morgan Stanley, Indonesia’s stock market is the most vulnerable stock market in Southeast Asia in terms of sudden capital outflows. Morgan Stanley downgraded Indonesia's equities to underweight from equal weight and labeled the country as "a relatively over-owned country".

Lanjut baca ›

On 2 July 2013, the World Bank released its July edition of the Indonesia Economic Quarterly. The report, titled Adjusting to Pressures, touches on the key developments over the past three months in Indonesia’s economy and places these in a longer term and global context. It regularly updates the outlook for the country’s economy and social welfare, and provides a more in-depth examination of selected economic and policy topics, as well as analyses of medium term development challenges.

Lanjut baca ›

Unemployment in Indonesia is expected to fall to 5.7 percent of Indonesia's total labor force at the end of 2013. In 2014, the figure may further decline to 5.1 percent if global and domestic conditions are conducive and if the government can provide sufficient support through job creation. These forecasts were presented by Muhaimin Iskandar, Minister of Manpower and Transmigration. The minister mentioned that each one percent in GDP growth will create more than 350,000 jobs.

Lanjut baca ›

Indonesia's government expects expenditure on subsidized fuels in 2014 to amount between IDR 190-220 trillion (USD $19.2 to 22.2 billion). A high official at Indonesia's Finance Ministry, Robert Pakpahan, said that the assumption is based on a subsidized fuel quota of 48 to 51 million kiloliters and an Indonesian crude oil price of USD $100-115 per barel. Despite having raised the price of subsidized gasoline by 44 percent last week, it means that both volume quota and total expenditure on fuel subsidies will rise in 2014.

Lanjut baca ›

According to Bambang Brodjonegoro, current head of the Fiscal Agency (a department under the wings of Indonesia's Finance Ministry), Indonesia's economy will grow 6.0 percent in the second quarter of 2013. This growth rate is lower than originally forecast due to the impact of a global unstable environment. Economic growth in Q2-2013 is also likely to be below the Q1-2013 result of 6.02 percent. A few weeks ago, the government of Indonesia had already revised down its GDP forecast for 2013 from 6.8 percent to 6.3 percent.

Lanjut baca ›

Credit rating agency Moody's Investors Service stated in a report released on Monday (24/06) that it is positive about the impact of the increase in price of subsidized fuel in Indonesia. Through this measure, the budget deficit of the Indonesian government is estimated to remain within 3 percent of GDP (the maximum threshold that is set by the government). Last Saturday (22/06), the price of gasoline was raised by 44 percent to IDR 6,000 and the price of diesel by 22 percent to IDR 5,500 despite widespread protests across the country.

Lanjut baca ›

After a long plenary session on Monday (17/06), Indonesia's House of Representatives (DPR) and the government have agreed to the revised 2013 State Budget (APBN-P). The revision was needed as original macroeconomic assumptions began to fall out of tune with reality. Due to global and domestic conditions a number of assumptions needed to revised down. Most controversial decision that was taken is the increase in price of subsidized fuel by 44 percent to IDR 6,500 (USD $0.66) per liter.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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).

Lanjut baca ›

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".

Lanjut baca ›

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).

Lanjut baca ›