After the companies Sitara Propertindo and Bank Dinar Indonesia were listed on the Indonesia Stock Exchange (IDX) on Friday (11/07), the total number of listed Indonesian companies has now reached 502. This year so far, there have been 18 Indonesian companies that conducted an initial public offering (IPO) on the IDX. Ito Warsito, General Director of the IDX, said that he is optimistic that this year’s target of 30 newly listed Indonesian companies will be achieved by the year-end.

Lanjut baca ›

After a trading week that was characterized by high gains in the stock and financial markets on optimism that Joko Widodo (Jokowi) will become the next president of Indonesia, both the Indonesian rupiah exchange rate and benchmark Jakarta Composite Index fell today (11/07). This seems an obvious sign that the euphoria about a Jokowi win has waned and investors are looking again to the true economic fundamentals of Southeast Asia’s largest economy. By 13:00 pm local Jakarta time, the Jakarta Composite Index had fallen 1.66 percent.

Lanjut baca ›

The US dollar continues to depreciate against emerging currencies after the minutes of the Federal Reserve’s latest FOMC meeting, released Wednesday (09/07), suggest that the US central bank will maintain historic low interest rates (0.0 - 0.25 percent) into 2015. The Fed informed that US interest rates hikes will only occur ”a considerable time” after the US asset-buying program (quantitative easing) has ended. Based on the latest minutes, this program is expected to end in October 2014.

Lanjut baca ›

Although not all quick count scores indicate a Joko Widodo (Jokowi) win, Indonesia’s stock and financial markets have gained considerably on Thursday (10/07) - one day after the 2014 Indonesian presidential election - on speculation that the General Elections Commission (KPU) will declare Jokowi the winner of the election on 22 July 2014. Out a total of 12 quick counts (mentioned below), eight showed a Jokowi win. Importantly, these seven quick counts include the authoritative agencies that traditionally have been highly accurate.

Lanjut baca ›

Since 07:00 am local time, Indonesians have been able to cast their votes for the country’s presidential election; a tight race between Joko Widodo and Prabowo Subianto. Despite the narrow gap between both presidential candidates (based on various surveys), the election has been conducted in good order so far. The polling stations will close at 13:00 pm local time. Hereafter, live quick count scores, which are traditionally quite accurate, will be presented. By approximately 17:00 pm local time, the quick counts are expected to be finalized.

Lanjut baca ›

Today, the Indonesian people decide who will become the next president of the world’s largest archipelago for the period 2014-2019. The Indonesian electorate numbers about 185.6 million (out a total population of 250 million) and they have only two options to choose from: Joko Widodo (Jokowi) and Prabowo Subianto, which also implies that the election will only require one round. Voting starts at 07:00 am local time and the ballot boxes close at 13:00 pm local time. Indonesian financial markets are closed.

Lanjut baca ›

Wednesday 9 July 2014, is a big day for Indonesia as on that day the Indonesian people will vote for the successor of incumbent Indonesian President Susilo Bambang Yudhoyono who had been given the mandate to lead two five-year presidential terms between 2004 and 2014 (and who is the only president in the era of Reformasi that was re-elected by the people). Now, the people have to choose between Joko Widodo (Jokowi), joined by running mate Jusuf Kalla, and Prabowo Subianto, who is joined by running mate Hatta Rajasa.

Lanjut baca ›

After having seen his lead over rival Prabowo Subianto narrow considerably in recent months, the latest survey released by the Indonesia Survey Circle (LSI) today (07/07) indicates that presidential candidate Joko ‘Jokowi’ Widodo’s popularity has rebounded, although the race remains tight. According to the survey, Jokowi and running mate Jusuf Kalla secured 47.8 percent of respondents’ votes, slightly higher than their rivals Prabowo Subianto and running mate Hatta Rajasa at 44.2 percent.

Lanjut baca ›

On Saturday 5 July 2014, the fifth presidential debate between the two presidential pairs took place. Candidates Prabowo Subianto (joined by running mate Hatta Rajasa) and Joko “Jokowi” Widodo (joined by running mate Jusuf Kalla) faced off in the last debate. The theme of this debate was 'energy, food security and environment'. Sudharto P. Hadi, Professor of Sociology at the Diponegoro University in Semarang (Central Java) was the moderator. On Wednesday 9 July 2014, the Indonesian people will go to the ballot boxes to elect their next leader.

Lanjut baca ›

On 06 July 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve political and economic topics such as the presidential election, a rupiah and stock market update, an analysis of inflation and the trade balance, corruption, poverty, GDP growth, prospects of the copper price, and more.

Lanjut baca ›

The Indonesian rupiah exchange rate appreciated sharply on Monday (07/07) due to the strong performance of presidential candidate Joko Widodo (Jokowi) in the presidential debate with rival candidate Prabowo Subianto last Saturday evening. Indonesian media declared Jokowi the winner of the debate because of his confident, eloquent and well-structured performance. This debate, in which the candidates were joined by their running mates, was the fifth and final one ahead of the presidential election on Wednesday 9 July.

Lanjut baca ›

Emerging currencies in Asia, led by the Indonesian rupiah exchange rate, strengthened in the past week on positive economic data from the US and China, the world’s two largest economies. Companies in the US added more jobs than expected in June 2014, while manufacturing in China grew at its fastest pace in 2014. Improving economies of the US and China are important for Asian countries as it boosts Asian exports. Moreover, Indonesian inflation and trade data contributed to positive market sentiments.

Lanjut baca ›

The result of Indonesia’s presidential election (scheduled for 9 July 2014), which has become a tight race between Prabowo Subianto and Joko Widodo (Jokowi), will for sure have a large impact on foreign investors’ confidence in Indonesian politics and the economy. A few weeks ago, a survey of Deutsche Bank showed that a majority of respondents (consisting of foreign investors) intend to sell their Indonesian assets if controversial candidate Prabowo Subianto will be elected. What are foreigners’ perceptions of a Subianto win?

Lanjut baca ›

Despite Hong Kong’s falling Hang Seng Index (HSI), the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) managed to climb 0.69 percent to 4,878.58 points on Monday (30/06). A number of reasons can be cited that positively influenced the performance of the IHSG. These are higher US Michigan Consumer Sentiment, positive forecasts for tomorrow’s release of June inflation and the May trade balance of Indonesia, declining global oil prices and the appreciating Indonesian rupiah exchange rate.

Lanjut baca ›

In the first half of 2014, 13 Indonesian companies conducted an initial public offering (IPO), including one relisting, on the Indonesia Stock Exchange (IDX). Total proceeds that were raised in the IPOs by these 13 companies was IDR 4.05 trillion (USD $340.3 million). However, both results were weaker than those in the same period last year. In the first half of 2013, 17 new listings were registered on the IDX and which managed to raise a combined total of IDR 10 trillion (USD $840.3 million). Why do we see less IPOs in Indonesia in 2014?

Lanjut baca ›

The Indonesian rupiah exchange rate is appreciating sharply on Monday (30/06). By 15:13pm local Jakarta time, the currency of Indonesia had strengthened 1.31 percent to IDR 11,838 against the US dollar. Main factors that cause this performance are the weakening US dollar (as a slowdown in the US economic recovery evokes expectations that the Fed Rate will not be raised soon) and falling oil prices; the US benchmark West Texas Intermediate declined 30 cents to USD $105.44 in mid-morning trade while Brent crude fell 22 cents to USD $113.08.

Lanjut baca ›

The Indonesian rupiah exchange rate depreciated 0.07 percent to IDR 12,099 per US dollar on Thursday (26/06) based on the Bloomberg Dollar Index, thus extending its recent weakening trend. This trend is expected to continue further as Bank Indonesia said it would allow rupiah depreciation in order to make the country’s exports more competitive (in an attempt to curb the current account deficit). However, this also dampens demand for Indonesian bonds. The 10-year yield rose to the highest level since February 2014.

Lanjut baca ›

The Indonesian rupiah exchange rate depreciated considerably on Wednesday (25/06) after Indonesia’s central bank (Bank Indonesia) said it would allow rupiah depreciation in an attempt to boost competitiveness of the country’s exports, while curbing imports. This strategy will have a positive impact on the country’s troubled trade balance. Based on the Bloomberg Dollar Index, the currency had weakened 0.67 percent to IDR 12,070 per US dollar by 14:30pm local Jakarta time.

Lanjut baca ›

The performance of Indonesia’s benchmark stock index (known as Jakarta Composite Index or IHSG) was similar to the performance at the start of last week, possibly influenced by the presidential debates that took place a day prior to the past two Mondays. These debates, between the two presidential candidates (Joko Widodo and Prabowo Subianto), are broadcast live on national television and are important to outline each candidate’s vision and mission to the people. On 9 July 2014, Indonesians will vote for a new leader.

Lanjut baca ›

The Indonesia rupiah exchange rate depreciated 0.16 percent to IDR 11,992 per US dollar on Monday (23/06) according to the Bloomberg Dollar Index, thus extending the currency’s recent depreciating trend. Meanwhile, Bank Indonesia's benchmark rupiah rate (known as the Jakarta Interbank Spot Dollar Rate, or, abbreviated JISDOR) depreciated 0.03 percent to IDR 11,971 against the greenback. What were the factors that influenced the rupiah’s performance today?

Lanjut baca ›