• Indonesia Update: Inflation Up, Manufacturing Activity Contracts

    After two straight months of deflation, Indonesia saw its consumer price index rise again in March 2015. According to data from Statistics Indonesia (BPS), Indonesia recorded inflation of 0.17 percent month-to-month (m/m) in March. This result was in line with analysts’ projections. On a year-on-year (y/y) basis, Indonesian inflation rose to 6.38 percent from the same month last year, slightly higher than the 6.29 percent (y/y) of inflation recorded in February. The country’s core inflation rose to 5.04 percent (y/y) in March.

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  • Indonesia Market Update: Why Stocks Go Up but the Rupiah Goes Down?

    Indonesian stocks continued to climb strongly after the market opened on Tuesday (31/03). The country’s benchmark Jakarta Composite Index (IHSG) surged nearly one percent. Several external and internal factors are at play here. Firstly, the US Federal Reserve indicated over the past week that it may not raise its key interest rate too soon, leading to investors’ appetite for emerging market assets. Secondly, Chinese policymakers provided room for increased infrastructure spending and monetary stimulus.

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  • Inflation Update Indonesia: Higher Fuel Prices Cause Inflationary Pressure

    The central bank of Indonesia (Bank Indonesia) estimates that Indonesia’s inflation rate in March will be around 0.3 to 0.4 percent month-to-month (m/m), slightly higher than its earlier forecast of around 0.28 percent (m/m). Later this week, Statistics Indonesia will release the country’s March inflation figure. In February inflation eased to 6.29 percent year-on-year (y/y) - from 6.96 percent (y/y) in the preceding month - amid declining fuel and food prices despite some inflationary pressures caused by higher rice prices.

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  • Stocks & Rupiah Update Indonesia: Impact of Janet Yellen’s Statements

    Whereas the Indonesian rupiah is depreciating on Monday’s trading day (30/03), Indonesian stocks climb significantly. At 14:15 pm local Jakarta time, the benchmark stock index (Jakarta Composite Index) had gained 0.93 percent to 5,444.27 points. In line with other Asian markets, Indonesia’s stock index felt the positive impact of Fed Chief Janet Yellen’s statements on Friday (27/03). Yellen indicated in a speech in San Francisco that it is riskier to raise US interest rates too fast than to raise them too slowly.

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