Below is a list with tagged columns and company profiles.
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In January 2022 the International Monetary Fund (IMF) announced it, again, revised its outlook for Indonesia’s economic growth. The Washington-based institution cut its forecast for growth in 2022 from 5.9 percent year-on-year (y/y) to 5.6 percent (y/y).
On Thursday (06.01.2022) Indonesia Investments released the December 2021 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 December 2021.
On Monday (06.12.2021) Indonesia Investments released the November 2021 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 November 2021.
On Friday 5 November 2021 Indonesia’s Statistical Agency (BPS) released the official Q3-2021 gross domestic product (GDP) data for Indonesia. While we had predicted a mediocre performance (based on the country’s lackluster retail sales, consumer confidence, credit growth and low inflation in this year’s third quarter), the figure was still below our forecast.
On Monday (8.11.2021) Indonesia Investments released its October 2021 report. This report discusses a range of subjects - related to political developments, the economy and social matters - that were influential in Indonesia in the month of October 2021.
Although in some respects Indonesia has exited the COVID-19 crisis (for example, the economic recession ended in Q2-2021, and the number of new COVID-19 cases and deaths eased significantly), the road ahead is uncertain and full of challenges.
On Thursday (7.10.2021) Indonesia Investments released its September 2021 report. This report discusses a range of subjects - related to political developments, the economy and social matters - that were influential in Indonesia in the month of September 2021.
On Tuesday (7.09.2021) Indonesia Investments released its August 2021 report. This report discusses a range of subjects - related to political developments, the economy and social matters - that occurred in Indonesia in the month of August 2021.
On 05 August 2021 Indonesia’s Statistical Agency (Badan Pusat Statistik, henceforth BPS) released the official gross domestic product (GDP) data for the second quarter of 2021.
On Thursday (05.08.2021) Indonesia Investments released its July 2021 report. This 182-page report discusses a range of subjects - related to political developments, the economy and social matters that occurred in Indonesia in the month of July 2021.
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The central bank of Indonesia (Bank Indonesia) estimates that Indonesia's current account deficit will ease to 3.5 percent of the country's gross domestic product (GDP) by the end of 2013. Indonesia's wide current account deficit has been one of the major financial troubles this year and managed to weaken investors' confidence in Southeast Asia's largest economy. Thus, Indonesia became one of the hardest hit emerging countries after the Federal Reserve started to speculate about an ending to its quantitative easing program.
In Bank Indonesia's board of governors' meeting, which was held on Thursday (12/12), it was decided to maintain the country's benchmark interest rate (BI rate) at 7.50 percent. This decision was in line with market expectation but was unable to support the Jakarta Composite Index and rupiah exchange rate. The lending facility and deposit facility interest rates were also maintained at 7.50 percent and 5.75 percent respectively. Bank Indonesia decided not to change the rate as Indonesia's inflation outlook for 2014 is still within target.
Rudi Wahyono, Executive Director of the Indonesian Center for Information and Development Studies (Cides), believes that Indonesia's economic expansion in 2014 will be divided in two stages: before and after the legislative and presidential elections. Before the 2014 elections, Wahyono expects that economic growth will be slightly lower at 5.7 percent compared to the period after the elections when growth is expected to hit 6 percent. Growth in the first half of 2014 will be less strong as investors are waiting for the election results.
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 November 2013 edition, a number of important issues that are monitored include Indonesia's inflation rate, the trade balance, the current account deficit, the IDR rupiah exchange rate, and gross domestic product (GDP) growth. Below is an excerpt of the newsletter:
Currently, one of Indonesia's main financial issues (and one which puts serious pressures on the Indonesian rupiah exchange rate) is the country's wide current account deficit. According to data from Statistics Indonesia, Indonesia's current account deficit totaled USD $8.4 billion in the third quarter of 2013. This figure is equivalent to a whopping 3.8 percent of Indonesia's gross domestic product (GDP). Generally, a current account deficit that exceeds 2.5 percent of GDP is considered unsustainable.
With having more than 10,000 islands, Indonesia offers an unique natural scenery. The country contains all sorts of attractive options for tourism, including seas, beaches, mountains and much more. Not surprisingly, tourist arrivals in Indonesia continue to grow. Based on data from Statistics Indonesia (BPS), released in early November 2013, the number of foreign tourist arrivals between January and September 2013 reached 6.41 million, an increase of 8.8 percent from the same period last year.
This week, a group of Dutch politicians and businessmen, led by prime minister Mark Rutte, will pay a four day visit to Indonesia. The aim of the visit is to smoothen bilateral relations and search for business opportunities between both countries. This Dutch group, which includes more than one hundred Dutch company delegates, forms the largest Dutch trade delegation that has visited Southeast Asia's biggest economy in the modern history. However, relations between the Netherlands and Indonesia are still complex today.
Indonesia's benchmark stock index (IHSG) was not able to continue its rebound. On Friday (15/11), the IHSG fell 0.73 percent to 4,335.45 points amid widespread profit taking. Foreign investors recorded net selling of IDR 193 billion (USD $16.9 million) on today's trading day. Moreover, investors are concerned about the impact of the higher interest rate of the central bank (7.50 percent), particularly on the property and banking sectors in the fourth quarter of 2013.
Despite rising concerns about the slowing pace of the Indonesian economy, the deputy minister of Finance Bambang Brodjonegoro reminded investors that Indonesia's economic growth in the third quarter of 2013 still constitutes one of the highest growth rates around the globe. Economic expansion in Q3-2013 slid to 5.6% in Southeast Asia's largest economy. With the exception of China (7.8% GDP growth in Q3-2013), Indonesia's growth continues to outpace growth in other emerging markets, such as Brazil (3.3%) and Turkey (4%).
Bank Indonesia decided to raise the BI rate by 25 bps to the level of 7.50 percent, with the Lending Facility rate and Deposit Facility rate raised to 7.50 percent and 5.75 percent respectively. This policy was taken in light of the persistently large current account deficit amid widespread global uncertainty. Therefore, the decision was taken in order to ensure that the current account deficit is reduced to a more sound level and inflation in 2014 returns to around 4.5±1 percent, thereby supporting sustainable economic growth.
