• Credit Growth Indonesia Limited amid Weak Export & Investment

    Indonesian entrepreneurs say their credit demand is limited due to few expansion and investment plans ahead of the end of the year. Although the Indonesian economy is recovering - reflected by accelerated GDP growth figures in the first two quarters of the year - demand from abroad for Indonesian products remains weak, while domestic demand remains somewhat subdued as well (reflected by the nation's structurally weakening export and import figures over the past 15 months). As a result credit growth has been slowing accordingly.

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  • Coal Miners Listed on the Indonesia Stock Exchange See Rising Shares

    Coal prices are experiencing a remarkable rebound so far this year. On Thursday (15/09) the coal price touched USD $70.95 per metric ton (September delivery, ICE Futures Exchange), up about 53 percent from its position at the year-start. For Indonesia, a country that ranks among the world’s biggest coal producers and exporters, this is good news. There are plenty of coal companies active in Indonesia that will see improving corporate earnings due to the bullish price. Moreover, several coal mining companies that are listed on the Indonesia Stock Exchange (IDX) have also seen their shares surge significantly.

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  • Budget Deficit Indonesia Expected to Widen to 2.7% of GDP in 2016

    The government of Indonesia may again revise the budget deficit target in the Revised 2016 State Budget (APBN-P 2016). Due to the widening shortfall (primarily caused by weaker than estimated tax revenue collection), the Indonesian government now expects the budget deficit to reach 2.7 percent of the nation’s gross domestic product (GDP), up 0.2 percentage points from the target that was set previously. The new figure is close to the legal cap of 3.0 percent of GDP stipulated by Indonesian law (a law that was implemented to safeguard the nation's fiscal fundamentals).

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  • Car Exports Indonesia: A Mixed Performance So Far this Year

    Indonesia’s exports of cars and components reached a value of USD $552.6 million in August 2016, up 50.3 percent (m/m) from USD $368.3 million in the preceding month when many countries celebrated Idul Fitri (marking the end of the holy Ramadan month). According to data from Statistics Indonesia (BPS), Indonesia exported a total of USD $3.72 billion worth of cars and components in the first eight months of 2016, up 1.5 percent on a year-on-year (y/y) basis. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), said rising car exports from Indonesia continue the positive performance that was recorded last year.

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