Below is a list with tagged columns and company profiles.
Latest Reports GDP
On 6 September 2022 Indonesia Investments released the August 2022 edition of its monthly report. In this report we analyze the latest (and most relevant) economic, political and social news from Indonesia.
In our July 2022 report we asked ourselves the question: ‘should we become more optimistic about Indonesia’s economic growth?’ since our outlook for the Indonesian economy in Q2-2022 fell out of tune with the general consensus held by a selection of international and domestic institutions. While our pessimistic stance served us well in 2020 and 2021 (when our projections also fell out of tune with the general consensus), this time it is our side that needs to revise its stance
On 4 August 2022 Indonesia Investments released the July 2022 edition of its monthly report. In this report we analyze the latest (and most relevant) economic, political and social news from Indonesia.
At the start of June 2022, the World Bank decided to cut its forecast for Indonesia’s economic growth in full-year 2022 from the level of 5.2 percent year-on-year (y/y) to 5.1 percent (y/y). Do we need to be concerned?
On 05 July 2022 Indonesia Investments released the June 2022 edition of its monthly report. In this report we analyze the latest (and most relevant) economic, political and social news from Indonesia.
On 6 June 2022 Indonesia Investments released its latest monthly report. As usual, our report offers independent, objective, and in-depth analyses of key economic, political and social topics that were in the news in Indonesia over the past month.
The Statistical Agency of Indonesia (Badan Pusat Statistik, BPS) released Indonesia’s Q1-2022 gross domestic product (GDP) data on 9 May 2022. Based on its calculation the Indonesian economy expanded 5.01 percent year-on-year (y/y), which is in fact better –albeit very modestly– than our projection that was set at 5.0 percent (y/y).
A bit later than usual due to the week-long Idul Fitri holiday, our April 2022 report was released on Monday 9 May 2022. In this report Indonesia Investments discusses key economic, political and social developments that occurred in Indonesia in the month of April 2022.
While the Indonesian economy has been recovering ever since the second quarter of 2021, there is some concern that Indonesia will experience a small hiccup in Q1-2022 as the Indonesian government felt the need to tighten its social and business restrictions (to PPKM Level 3) in February 2022 due to the rapid spread of Omicron in society. It is a decision that should somewhat limit economic activity.
On Tuesday (08.03.2022) Indonesia Investments released the February 2022 edition of its monthly report. This report discusses a range of subjects - related to political developments, the economy and social matters - that were important and influential issues in Indonesia in the month of February 2022.
Latest Columns GDP
Indonesian Finance Minister Chatib Basri said that the lower pace of economic growth in China, the world’s second-largest economy, is a major concern for Indonesia as it leads to declining demand for commodities (and thus places downward pressure on commodity prices). As Indonesia is a major commodity exporter - such as coal, crude palm oil, nickel ore and tin - the country feels the impact of weak global demand for commodities. About 60 percent of Indonesia’s exports are commodities, mostly raw ones.
The government of Indonesia agreed with the House Budget Committee to adjust the economic growth target of Southeast Asia’s largest economy in 2015 to 5.8 percent, 0.2 percentage point up from the initial growth target proposed by the government in the Financial Memorandum as well as the 2015 State Budget Draft (APBN). Still, the 5.8 percent gross domestic product (GDP) growth target constitutes the lowest growth target set in Indonesia’s state budget (excluding revised state budgets) since the year 2010.
The Indonesian government admits that it is difficult to achieve the 5.5 percent gross domestic product (GDP) growth target that was set in the Revised 2014 State Budget (APBN-P 2014). In fact, Deputy Finance Minister Bambang Brodjonegoro stated that Southeast Asia’s largest economy will have to work hard to reach +5.3 percentage point GDP growth this year. “We have to be realistic. Hopefully GDP growth will improve in the second half of 2014 to a level of 5.3 percent. The current forecast for GDP growth in 2014 is 5.2-5.3 percent,” he said.
Property stocks listed on the Indonesia Stock Exchange (IDX) have outperformed all other stocks between the first trading day of 2014 up to 29 August 2014. The IDX’ property sector category rose 37.6 percent in the indicated period, whereas the benchmark stock index (Jakarta Composite Index, abbreviated IHSG) - which involves all stocks traded on the IDX - climbed 18.7 percent over the same period. On the IDX, stocks are placed in ten sectoral categories. The second-best performing sectoral index was finance (+24.5 percent).
The central bank of Indonesia (Bank Indonesia) announced two important matters on Thursday (14/08). Firstly, the institution decided to maintain the benchmark interest rate (BI rate) at 7.50 percent, the overnight deposit facility rate (Fasbi) at 5.75 percent, and the lending facility rate at 7.50 percent. Secondly, it announced that Indonesia’s current account deficit widened to USD $9.1 billion, or, 4.27 percent of the country's gross domestic product (GDP) in the second quarter of 2014, a widening that is larger than initially forecast.
Indonesia’s gross domestic product (GDP) growth in the first half of 2014 reached 5.17 percent (year-on-year), thus continuing the slowing growth trend that has been recorded by the country since 2011. Forecasts for GDP growth in the second half of 2014 indicate a slight improvement (to the range of 5.2 to 5.3 percent year-on-year) supported by strong household consumption, increased government spending and further growth of the trade and services sector. However, in recent quarters the official GDP figure has been lower than most forecasts.
Weakening global stock indices meant that it would be difficult for the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) to continue its upward movement on Tuesday (05/08). Moreover, there were few positive sentiments originating from the Archipelago as Indonesia’s Q2-2014 GDP growth (+5.12 percent year-on-year) was below expectation and the country’s trade balance showed a deficit of USD $300 million in June 2014. Meanwhile, the Indonesian rupiah exchange appreciated slightly.
Statistics Indonesia (BPS) announced on Tuesday (05/08) that Indonesia’s economy grew 5.12 percent in the second quarter of 2014 from the same quarter last year. This means that gross domestic product (GDP) growth of Indonesia has continued the slowing trend it has been experiencing since 2011. The 5.12 percentage point GDP growth in Q2-2014 is the slowest growth pace that has been recorded by Southeast Asia’s largest economy since the fourth quarter of 2009. What explains this slowing economic growth of Indonesia?
When campaigning, presidential candidates will always promise a bright future in order to gain votes. It is particularly easy for a new presidential candidate to promise golden mountains as opposed to the incumbent president who needs to be more cautious making promises as people can point to the (failed) results of his promises during the presidential term. The 2014 Indonesian presidential election was particularly interesting as we saw two new presidential candidates and, thus, the ‘inflation of promises’.
ICRA Indonesia, an independent credit rating agency and subsidiary of ICRA Ltd. (associate of Moody's Investors Service), publishes a monthly newsletter which provides an update on the financial and economic developments in Indonesia of the last month. In the June 2014 edition, a number of important topics that are monitored include Indonesia's inflation rate, the trade balance, the BI rate, the IDR rupiah exchange rate, and gross domestic product (GDP) growth. Below is an excerpt of the newsletter:
