Today's Headlines in Indonesia

The Today's Headlines section of Indonesia Investments is a regularly updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines 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.

  • Indonesian Rupiah Depreciates Sharply on Greek Default Concern

    The Indonesian rupiah exchange rate is depreciating sharply on Thursday (12/02). By 12:10 pm local Jakarta timezone, the currency had fallen 1.11 percent to IDR 12,865 per US dollar (Bloomberg Dollar Index). Market participants have become increasingly concerned about a Greek default or exit from the Eurozone and react by selling emerging market assets in search of safe havens such as the US dollar. Yesterday (11/02), the Eurozone’s finance ministers could not reach agreement on the Greek debt situation.

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  • IMF & Moody’s Outlook on the Indonesian and World Economy

    Benedict Bingham, Senior Resident Representative for Indonesia at the International Monetary Fund (IMF), expects that the central bank of Indonesia (Bank Indonesia) will remain committed to the tighter monetary policy in a bid to safeguard the country’s fiscal fundamentals amid external pressures. Apart from sluggish global economic growth, the looming interest rate hike in the USA (later this year) is expected to rock Indonesia as it will trigger capital outflows from emerging markets.

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  • Indonesian Cement Sales Slowed in January 2015 due to Rainy Weather

    Domestic cement sales in Indonesia fell 2.9 percent year-on-year (y/y) to 4.5 million tons in January 2015. A fall in cement consumption was detected in almost all regions of Indonesia, possible related to heavy rains that have plagued several areas in January and led to a slowdown in construction and infrastructure projects in Southeast Asia’s largest economy. Widodo Santoso, Head of the Indonesian Cement Association (ASI), said that the largest declines in cement sales in the first month of 2015 were recorded in Kalimantan and Sumatra.

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  • Banking Sector of Indonesia to Become Less Open to Foreign Investment

    Commission XI of Indonesia’s House of Representatives (DPR), which oversees the country’s banking sector, will soon propose a new draft of a bill that sets to limit foreign ownership in Indonesian banks at 40 percent (from 99 percent currently). Established banks that are majority-owned by foreigners will be given a 10-year period to divest their shares after the bill has been passed into law (reportedly an earlier draft only provided a five-year transition period for this mandatory divestment).

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