The Indonesian rupiah exchange rate was relatively stagnant on Friday (15/08). Based on the Bloomberg Dollar Index, the currency of Southeast Asia’s largest economy had depreciated 0.01 percent to IDR 11,680 per US dollar at 15:40 pm local Jakarta time. At the start of the day, the rupiah depreciated as market players were waiting for incumbent President Susilo Bambang Yudhoyono’s state speech ahead of the country’s Independence Day on 17 August. Afterwards, the rupiah gained in line with the performance of other Asian currencies.

Lanjut baca ›

The Indonesian rupiah exchange rate appreciated 0.86 percent to IDR 11,678 per US dollar on Monday (11/08) according to the Bloomberg Dollar Index. The rupiah was supported by internal and external factors. On the internal side, the rupiah strengthened as the Constitutional Court is expected to dismiss defeated presidential candidate Prabowo Subianto’s appeal. Former army general Subianto challenged the official election result, claiming that massive violations occurred at polling stations and during the counting process.

Lanjut baca ›

The Indonesian rupiah exchange rate strengthened slightly on the last trading day of the week. On Friday (08/08), Indonesia’s currency appreciated 0.15 percent to IDR 11,779 per US dollar according to the Bloomberg Dollar Index. Most Asian currencies and stocks fell, while prices of gold and oil jumped, after US President Barack Obama agreed to air strikes in northern Iraq (aimed at Sunni extremist militants). In combination with continued tensions in Ukraine as well as Gaza, investors opt for risk aversion (and profit taking).

Lanjut baca ›

Amid falling stocks and government bonds, the Indonesian rupiah exchange rate depreciated 0.45% to IDR 11,751 per US dollar according to the Bloomberg Dollar Index on Wednesday (06/08). This weak performance is caused by recent solid economic data from the USA, while tensions in the Ukraine are increasing (causing investors to prefer to invest in safe havens) after Russian President Vladimir Putin ordered a response to sanctions. Meanwhile, the euro lost ground to the US dollar after Germany posted unexpected declining factory orders.

Lanjut baca ›

Despite the release of slowing Q2-2014 GDP growth as well as the June 2014 trade deficit, the Indonesian rupiah exchange rate appreciated 0.53 percent to IDR 11,698 against the US dollar according to the Bloomberg Dollar Index on Tuesday (05/08). This performance of Indonesia’s currency is in line with the performance of other emerging Asian currencies on today’s trading day. The US dollar weakened against almost all these currencies as lower US yields made investors decide to search for higher returns in Asia.

Lanjut baca ›

According to data from the Financial Services Authority (OJK), foreign banks operating in Indonesia have posted great profit growth in the January to May 2014 period. Combined, these foreign banks have recorded a 94.36 percentage point growth (year-on-year) in profit to IDR 3.79 trillion (USD $323.9 million) in the first five months of this year. The reason behind this jump in profit is the sharply depreciated rupiah exchange rate. Over the course of 2013, the rupiah fell over 25 percent against the US dollar.

Lanjut baca ›

Although the Indonesia stock exchange as well as most businesses are still closed on Friday (01/08) amid Idul Fitri celebrations, trading in the Indonesian rupiah resumed after a four-day holiday. Impacted by developments in the USA, the Indonesian rupiah exchange rate had depreciated 1.82 percent to IDR 11,791 per US dollar by 12:25 pm local Jakarta time (based on Bloomberg Index). Asian currencies are heading for the largest weekly decline since June 2014 after US economic data indicate improved economic recovery of the USA.

Lanjut baca ›

The benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) may reach a new record high level this week after market favourite Joko Widodo - popularly known as Jokowi - was officially announced the winner of the 2014 presidential election by the General Elections Commission (KPU) on Tuesday (22/07). Not unimportantly, the final decision was not accompanied by any riots or social unrest Jakarta or other parts of the Archipelago, thus giving investors some more peace of mind regarding the stability of Indonesian assets.

Lanjut baca ›

The Indonesian rupiah exchange rate came close to the IDR 12,000 per US dollar mark on Wednesday (18/06). Based on the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.87 percent to IDR 11,997 per US dollar. Bank Indonesia stated that the weakening is due to violence in northern Iraq (giving rise to a higher oil price which subsequently pressures the financial balance sheets of countries that import oil, such as Indonesia), and concern about results of the Federal Reserve meeting (17-18 June 2014).

Lanjut baca ›

The Indonesian rupiah exchange rate had depreciated 0.20 percent to IDR 11,819 per US dollar by 15:30pm local Jakarta time based on the Bloomberg Dollar Index. This performance is in line with the performance of other emerging currencies in Asia, which all tend to weaken against today’s strengthening US dollar. One of the factors that pressures on the rupiah is the geopolitical tensions in Iraq which have resulted in a rising oil price (last week the oil price rose by 4.5 percent).

Lanjut baca ›

Indonesia's central bank (Bank Indonesia) expects that economic growth of Indonesia in 2013 will not meet the government's target as has been set in the revised State Budget (APNB-P). Last month, both government and parliament of Indonesia agreed on a revised GDP growth assumption of 6.3 percent. However, Bank Indonesia believes that, due to slowing domestic consumption and investments in the current global economic context, the growth is more likely to fall between 5.8 and 6.2 percent.

Lanjut baca ›

Higher American indices after the release of ADP employment change and lower initial jobless claims made an indirect impact on Asian stock indices, including Indonesia's main stock index (IHSG) on Thursday (04/07). Investors used the positive outcomes of these data to start purchasing stocks, although in limited quantities. Foreign investors, however, are still selling more Indonesian shares than they buy, which subsequently results in limited growth of the IHSG on Thursday (04/07). The index grew 0.10 percent to 4,581.93.

Lanjut baca ›

Indonesia's main stock index (IHSG) took another large blow on Wednesday (03/07). The index fell 3.20 percent to 4,577.15 points as investors were worried after reading the revised outlook of the World Bank. The institution downgraded its forecast for economic growth in Indonesia in 2013 from 6.2 percent to 5.9 percent. Higher inflation, because of the recent subsidized fuel price hike, is expected to result in lower domestic consumption. The IDR rupiah posted a slight weakening to IDR 9,941.

Lanjut baca ›

Weakening American and European stock indices on Tuesday (02/07), as investors mostly refrained from trading ahead of Wednesday when a number of important US economic data are released, caused negative market sentiments in Asia today (03/07). Moreover, the market responded negative towards the World Bank's July report in which the outlook for economic growth of Indonesia in 2013 was cut to 5.9 percent (from 6.2 percent). Lastly, a gap at 4,620 - 4,644 still needed to be closed.

Lanjut baca ›

The World Bank has revised down its forecast for economic growth in Indonesia in 2013 to 5.9 percent from its original estimate of 6.2 percent. Similarly, the institution has altered its forecast for economic growth in 2014 from 6.5 percent to 6.2 percent. The revised figures were published in July's edition of the Indonesia Economic Quarterly (IEQ), titled 'Adjusting to Pressures'. The World Bank's forecast is also in sharp contrast with the GDP assumption of the Indonesian government, which puts economic growth in 2013 at 6.3 percent.

Lanjut baca ›

Asian stock indices were up on Thursday (27/06) after economic growth of the United States in Q1-2013 was lower than expected. Paradoxically, this had a positive effect on global stock indices as speculation arose that the disappointing growth rate would convince the Federal Reserve to continue its quantitative easing program. It also had a good affect on Indonesia's main stock index (IHSG), which gained 1.92 percent and ended at 4,675.75. The index was well on its way to close a gap (at 4,743-4,801) but was blocked by mixed European openings.

Lanjut baca ›

It has been a long time since we have reported a good day at the Indonesia Stock Exchange (IDX). But finally on Wednesday (26/06) Indonesia's main stock index (IHSG) made a great jump upwards, supported by American and European stock indices that were up on Tuesday (25/06) due to positive economic data from the United States. Investors used this positive context to engage in stock trading. Moreover, Indonesia's stocks are currently - technically speaking - cheap and thus attractive.

Lanjut baca ›

After several years of significant foreign capital inflows into Indonesia, a sharp contrast has been visible in recent weeks. Global panic that followed in the days after Ben Bernanke announced that the Federal Reserve intends to withdraw its quantitative easing program in 2014 (if economic recovery of the USA continues), hit Indonesia hard. It triggered a massive capital outflow from the country's stock exchange (IDX) as well as from government securities (Surat Berharga Negara, or SBN).

Lanjut baca ›

Apparently the stormy and dark clouds above the Indonesia Stock Exchange (IDX) are still present. Most foreign investors continued to sell their Indonesian assets, resulting in another day of losses for the main stock index of Indonesia (IHSG). Not even clarity about the price hike of subsidized fuel could ease investors' minds (fuel prices were increased last Saturday after months of speculation). For the last two weeks negative sentiments have coloured the stock exchange and profit taking has been the result.

Lanjut baca ›

Concerns about an ending to the Federal Reserve's quantitative easing program and falling industrial activity in China as well as China's credit crisis made many investors decide to sell assets on stock markets around the world on Thursday (20/06). Indonesia's main stock index (IHSG) was just one of the many victims of this global unrest. The index weakened 3.68 percent to 4,629.99 points as foreign investors mostly sold their Indonesian assets, resulting in significant lowered share prices of Indonesia's big cap companies.

Lanjut baca ›