• Nielsen: despite Economic Slowdown Consumer Confidence Indonesia Strong

    Despite Indonesia currently experiencing slowing economic growth, Indonesian consumers remain optimistic. According to Nielsen’s latest Consumer Confidence Index, published on Wednesday (20/05), Indonesia was the second most optimistic country (after India) in terms of consumer confidence in the first quarter of 2015. Indonesia collected 123 points through the online survey that not only measures consumer confidence but also the major concerns and spending intentions of consumers.

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  • Indonesian Stocks Up, Rupiah Weakens: Focus on Fed’s FOMC Minutes

    Indonesian stocks continued to rise one day after the country’s central bank (Bank Indonesia) announced to leave the interest rate policy unchanged and, instead, choosing to loosen its macro-prudential policy by revising the LDR-RR regulation, LTV policy for mortgage loans and down payments on automotive loans, hence increasing liquidity and boosting credit growth in the banking sector. Indonesia's rupiah, however, depreciated sharply after the market opened on Wednesday (20/05) due to the strong US dollar.

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  • Bank Indonesia Leaves Tight Monetary Policy, Interest Rates Unchanged

    Indonesia's central bank (Bank Indonesia) showed that it is committed to its relatively tight monetary stance as it left interest rates unchanged at its May Board of Governor’s Meeting. Despite pressures from the government and business players to cut interest rates (which would boost economic growth), Bank Indonesia maintained its key BI rate at 7.50 percent, the overnight deposit facility at 5.50 percent and the lending facility rate at 8.00 percent. In the first quarter of 2015 Indonesia’s economic growth had slowed to a disappointing 4.71 percent (y/y).

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  • Global Demand for Indonesian Luwak Coffee (Kopi Luwak) Declined

    The Central Java branch of the Association of Indonesian Coffee Exporters (AEKI) said that demand for luwak coffee (Indonesian: kopi luwak), an Indonesia specialty coffee and known as the world’s most expensive coffee, has been in decline since 2013. Luwak coffee is an extraordinary type of coffee as it is brewed from beans that have passed through the digestive system of the Asian palm civet cat. This labour-intensive production process and its scarcity on the global market cause luwak coffee’s expensive price.

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