Indonesia's central bank (Bank Indonesia) has sent a clear signal to those market participants that hope to see a lower benchmark interest rate (BI rate) in Southeast Asia's largest economy in the near future. Governor of Bank Indonesia Agus Martowardojo stated that there will be no lower BI rate as long as there is looming global uncertainty. On the contrary, the possibility of another BI rate hike is still there. In 2013, Bank Indonesia raised its BI rate on five occassions in order to combat inflation and curb the country's wide current account deficit.

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The Indonesian government will issue Euro-denominated bonds in 2014. This will be the first time in Indonesian history that the government issues bonds in the Euro currency. Aim of the issuance, which will have a maturity date ranging from 5 to 10 years, is government loan refinancing. Scenaider CH Siahaan, Director for Strategy and Debt Portfolio at the Finance Ministry's Directorate General of Debt Management, said that the government will hold a total of 44 bond auctions in 2014.

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An updated profile of Bank Mandiri is presented in our Indonesian Companies' section. Bank Mandiri, which is Indonesia’s largest financial institution by assets, offers businesses and individuals throughout Indonesia a full set of banking and non-banking products and services. The bank was established as a result of the Asian Financial Crisis when four state-owned banks (Bank Exim, Bank Bumi Daya, Bank Dagang Negara and Bapindo) were merged into Bank Mandiri as part of the government's bank restructuring program.

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Indonesia Investments updated the company file of Bank Central Asia (BCA). The company is Indonesia’s largest lender by market value and the country's second largest bank by assets. Robust loan disbursements translated into BCA's higher net profit growth in the first half of 2013. In this period the bank posted a 19.3 percent growth (yoy) in net profits to IDR 6.3 trillion, mainly supported by higher net interest income and fee-based income. The bank's loan portfolio grew 24 percent to IDR 280.4 trillion.

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Indonesia's banking sector is expected to have no difficulties in coping with current financial turmoil in Indonesia's economy. The country's banking industry is much stronger and healthier now than when the crisis in 1997-1998 or 2008 erupted. There have been reports that a few small banks have used the central bank's overnight lending facility, but various stress tests indicate that the banking sector is strong. Gross non performing loans per June 2013 have been kept below1.9 percent, which is significantly lower compared to previous periods.

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Spending on advertisement in Indonesia's media in the first six months of 2013 has grown 25 percent to IDR 51.16 trillion (USD $4.65 billion) compared to the same period last year. This sharp increase was supported by a six percent rise in advertising volume to 3.5 million advertising spots (advertising space) on television, and in newspapers and magazines. With about 68 percent of total spending, television generates most of the country's advertisement spending, followed by newspapers (30 percent) and magazines/tabloids (2 percent).

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Indonesian stocks took a large dive on today's trading day (19/08) at the Indonesia Stock Exchange. The IHSG (the index of all listed stocks) fell 5.58 percent to 4,313.52 points as negative market sentiments caused foreign investors to pull money out of the Indonesian market. Investors are highly concerned about a number of macroeconomic data that have been released recently. These data indicated the slowest economic growth since Q3-2010, inflation at a four-year high and a widening trade deficit.

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Bank Tabungan Negara (BTN) is a state-controlled Indonesian bank that is market leader in the country's mortgage loans sector and is positioned inside the top ten of Indonesian banks in terms of assets and credit loans. The company's business activities focus on three sectors: mortgage loans and consumer banking, housing and commercial banking, and Syariah-banking (Islamic banking). Since the start of 2013, shares of Bank Tabungan Negara have fallen 23.65 percent.

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Indonesia Investments has updated the company profile of Bank Rakyat Indonesia (BRI), one of the leading commercial banks in Indonesia and the country's second largest lender by assets. The bank's business focus mainly lies on banking services in micro, small, and medium enterprises (MSME’s). BRI was a state-owned company until 2003 when it listed 30 percent of its shares on the Indonesia Stock Exchange (IDX). It is currently one of the largest Indonesian companies in terms of market capitalization.

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Despite a higher benchmark interest rate, higher inflation, a weakening rupiah, and global economic turmoil, four out of seven Indonesian banks that released their financial results over the first half of 2013, have posted double-digit growth. The seven banks show a combined growth of 16.2 percent. Although it is an impressive figure, it is a couple of percentage points lower than last year's performance. Indonesia's economy has slowed down to an annual economic growth of six percent and this has impacted on domestic demand for credit loans.

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At the latest annual meeting of Indonesia’s central bank (Bank Indonesia), this lender of last resort presented a white paper on the digital rupiah (central bank digital currency, or CBDC). Just like what is happening abroad (and likely also in response to the rise of cryptocurrencies), Bank Indonesia is eager to launch a digital rupiah, possibly ultimately aiming to gradually phase out the use of physical money (notes and coins).

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Indonesia is known for being home to the world’s largest Muslim population. More than 230 million Indonesians – which is about 88 percent of Indonesia’s total population – are categorized as Muslim. In fact, nearly 13 percent of all Muslims in the world, today, live in Indonesia. These are very impressive numbers and surely impact heavily on Indonesian society, the economy, and politics.

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Fintech (short for financial technology) is a relatively new global industry that uses technology to improve various activities in the finance sector. For example, smartphones allow for easy mobile banking, while investing services or cryptocurrency are examples of technologies that aim at making financial services more accessible to the general public. Fintech startups have actually been booming rapidly in recent years, making traditional players (most notably: banks) somewhat nervous (and forcing these traditional players to apply new technology into their own business models).

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Rapid development of financial technology (fintech), which involves the delivery of financial services that use the latest technology and innovation to compete with the world's traditional financial methods, is also visible in Indonesia.

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A selection of corporate earnings reports (covering net profit and revenues in the first quarter of 2015) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX) is presented by Indonesia Investments below. The companies are categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment.

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Laporan-laporan pendapatan perusahaan yang dipilih (mencakup laba bersih dan pendapatan untuk tahun fiskal 2014) dari perusahaan-perusahaan Indonesia yang terdaftar di Bursa Efek Indonesia (BEI) disediakan di bawah ini. Perusahaan-perusaahaan ini dibagi dalam kategori sektor: (1) pertanian dan pertambangan, (2) industri dasar dan kimia, (3) macam-macam industri, (4) barang konsumsi, (5) properti dan real estate, (6) infrastruktur, peralatan dan transportasi, (7) keuangan, dan (8) perdagangan, jasa dan investasi.

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Indonesia Investments presents a selection of corporate earnings reports (covering the first 9 months of 2014) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX), categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues, together with year-on-year (yoy) growth.

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Although Indonesia’s September 2014 inflation (0.27 percent m/m) and appreciating rupiah exchange rate had a positive impact on the performance of Indonesia’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) on Wednesday (01/10), its gain was limited by declining indices on Wall Street on the previous day as well as Indonesia’s August trade deficit (USD $318.1 million), which resulted in foreign net selling of worth IDR 388 billion of Indonesian stocks. The IHSG climbed 0.06 percent to 5,140.91 points.

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Indonesia Investments presents a selection of corporate earnings reports (covering the first half of 2014) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX), categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues, together with year-on-year (yoy) growth.

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Property stocks listed on the Indonesia Stock Exchange (IDX) have outperformed all other stocks between the first trading day of 2014 up to 29 August 2014. The IDX’ property sector category rose 37.6 percent in the indicated period, whereas the benchmark stock index (Jakarta Composite Index, abbreviated IHSG) - which involves all stocks traded on the IDX - climbed 18.7 percent over the same period. On the IDX, stocks are placed in ten sectoral categories. The second-best performing sectoral index was finance (+24.5 percent).

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