The Today's Headlines section of Indonesia Investments is a daily updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines will cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
Indonesia’s inflation rate was a bit on the mild side in the first month of 2023. The country’s Statistical Agency (in Indonesian: Badan Pusat Statistik, or BPS) reported that Indonesian inflation reached 0.34 percent month-on-month (m/m) in January 2023, which is a bit lower than the historical average in the month of January.
The central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate (BI 7-day reverse repo rate) by 25 basis points (bps) after concluding its two-day policy meeting on 18-19 January 2023. Indonesia’s benchmark rate now stands at 5.75 percent. It also raised its deposit facility and lending facility rates by 25 bps to 5.00 percent and 6.50 percent, respectively.
Manufacturing activity continued to expand in the first month of 2023, even slightly accelerating from the preceding month. The S&P Global Indonesia Manufacturing Purchasing Managers’ Index (PMI) showed a reading of 51.3 points in January 2023, up modestly from 50.9 points in December 2022 (with 50.0 being the threshold that separates contraction from expansion in the manufacturing sector).
Indonesian Health Minister Budi Gunadi Sadikin said he will visit the World Health Organization (WHO) in March 2023 for a meeting with the institution’s top officials. In Indonesian media he was quoted saying that he will urge WHO officials to revoke the pandemic status as the COVID-19 virus doesn’t pose a threat anymore in many countries, including Indonesia.
