• Monetary Policy: Bank Indonesia Offers More Accommodative Policies

    Monetary Policy: Bank Indonesia Offers More Accommodative Policies

    At its latest monetary policy meeting, completed on 18 February 2021, Indonesia’s central bank (Bank Indonesia) decided to cut its benchmark interest rate (the seven-day reverse repurchase rate) by 25 basis points (bps) to 3.50 percent, a historically low level for Southeast Asia’s largest economy. Also the deposit facility and lending facility rates were cut by 25 bps to 2.75 percent and 4.25 percent, respectively.

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  • January 2021 Trade Data Brings Renewed Concerns Over Indonesia’s Import Performance

    January 2021 Trade Data Brings Renewed Concerns Over Indonesia’s Import Performance

    Indonesia started the year with another comfortable trade surplus. In January 2021 the country posted a trade surplus of USD $1.96 billion. Since May 2020 Indonesia has been recording an impressive series of big trade surpluses, each month. This is a positive matter for the country’s current account balance and the rupiah rate (and thus also supports risk appetite in the capital markets).

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  • Subscriber Update Indonesia: COVID-19 Recession Persists in Q4-2020

    Economic Update Indonesia: COVID-19 Crisis Pulls Indonesian Economy into Recession

    On 5 February 2021, Indonesia’s Statistical Agency (Badan Pusat Statistik, or BPS) announced that gross domestic product (GDP) of Southeast Asia’s largest economy contracted 2.19 percent year-on-year (y/y) in the fourth quarter of 2020. This was less severe compared to Indonesia Investments’ outlook of -2.50 percent (y/y).

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  • Political, Economic & Social Developments in Indonesia: January 2021 Report

    Political, Economic & Social Developments in Indonesia: January 2021 Report

    On Friday 5 February 2021 Indonesia Investments released its January 2021 report. The report zooms in on key economic, political, and social developments in Indonesia in January 2021. Special attention is given to Indonesia's COVID-19 immunization program (do we expect to see setbacks?), household consumption amid the COVID-19 restrictions, the Sriwijaya Air crash, and Indonesian demographics.

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