Below is a list with tagged columns and company profiles.
Latest Reports Inflation
As expected, Indonesian inflation remained relatively low in December 2024, at 0.44 percent month-on-month (m/m), amid the year-end holiday season (Christmas and New Year celebrations).
On Friday 03 January 2025, Indonesia Investments released the December 2024 edition of its monthly report. The report presents a selection of subjects (related to the economy and politics of Indonesia) that were relevant in December 2024.
After a six-month period of either deflation or very low inflation (all driven by easing food prices), the month of November finally brought some more significant inflation to Indonesia as we approach the end of 2024 (meaning: arrival of the festive season).
Between May and September 2024, Indonesia had experienced a (remarkable) five-month deflation streak, driven by contracting food prices. And so, we were certainly quite interested in the latest consumer price index (CPI) data that were released by the Statistical Office of Indonesia (Badan Pusat Statistik, BPS) on 1 November 2024.
Something very unusual is happening in Indonesia (something we normally only see during crises). The latest consumer price index data released by the Statistical Office of Indonesia (Badan Pusat Statistik, BPS) show that Indonesia experienced its fifth consecutive month of deflation in September 2024.
On Friday 4 October 2024 Indonesia Investments released the September 2024 edition of its monthly report. The report discusses a range of economic, political and social topics to assess the state of the Indonesian economy.
Last month it was remarkable that Indonesia experienced three straight months of inflation (this rarely happens unless a crisis occurs). Considering August is typically a month without inflationary pressures this streak was expected to continue. Indeed, the Statistical Office (Badan Pusat Statistik, BPS) confirmed that deflation was 0.03 percent month-on-month (m/m) in August 2024.
On Friday 6 September 2024 Indonesia Investments released the August 2024 edition of its monthly report. This report discusses various economic, political and social topics that were relevant (to Indonesia) in the month of August 2024.
Again, and in contrast to our expectations, Indonesia’s consumer price index showed deflation. After 0.03 percent month-on-month (m/m) of deflation in May 2024, the latest data from Indonesia’s Statistical Office (Badan Pusat Statistik, or BPS) show a 0.08 percent (m/m) deflation rate in June 2024.
On Friday 05 July 2024, Indonesia Investments released the June 2024 edition of its monthly report. The report zooms in on the latest economic, political and social developments that (potentially) impact on the investment environment of Indonesia.
Latest Columns Inflation
Last week, Indonesia's main stock index (IHSG) moved remarkably well. The index managed to set a new record high at 5145.68 points on Friday (17/05/13) as it was pushed up by its strongest pillar of support, the consumer sector. Indonesia's consumer sector rose as much as 8.23 percent last week, while the largest obstacle to growth was the country's mining sector, which experienced a correction of 3.31 percent. What are the underlying reasons of last week's gain towards yet another record high? And is it sustainable?
Positive American and European stock indices on Tuesday (14/05/13) made a good impact on Asian stock indices on Wednesday (15/05/13), including Indonesia's main index (IHSG) which is heading towards the 5,100 points line. Although many foreign investors were eager to sell their Indonesian assets, support from other Asian stock indices kept the IHSG within the green zone. At the end of the trading day, it stood at 5,089.88 points, a 0.16 percent rise.
One of the sectors that showed exceptional growth in 2012 was Indonesia's property market. On average, net profit of companies engaged in Indonesia's property sector grew 68 percent during the full year. Of the 45 property companies that are listed on the Indonesia Stock Exchange (IDX), 26 posted net profit growth that exceeded 50 percent. But the success story did not end there. In the first quarter of 2013, the property sectoral index of the IDX continued its fast pace by rising over 41 percent.
The release of Indonesia's April deflation figure (0.10%) and orderly May Day demonstrations provided a good environment for investors to continue purchasing Indonesian stocks (despite uncertainty about Indonesia's subsidized fuel policy. Moreover, positive Asian stock indices - in combination with positive European openings on Wednesday - made the Indonesia Stock Index (IHSG) rise to a new record level of 5,060.92 points on Wednesday (01/05/13), a 0.53 percent gain.
Even though American and European stock indices were positive on Monday (in fact S&P 500 set a new record) it did not impact directly on the performance of Indonesia's main stock index (IHSG) on Tuesday (30/04/13). In the first session, the IHSG's peak at 5,014 points was only short-lived and quickly lowered again. In the second session, however, the index started to show more solid growth (despite the ongoing uncertainty about Indonesia's subsidized fuel price) as Asian stock markets were mostly up.
After two consecutive days of decline, the Jakarta Composite index (IHSG) had no intention to continue its fall. Indonesia's main index was able to rise 0.43 percent to 4,999.75 points on Monday 29 April 2013. Stocks that had been weakening in recent days were popular among investors. Moreover, both Asian stock indices and foreign net purchases of Indonesian stocks supported Indonesia's index, although it fell short of reaching the psychological boundary of 5,000 points.
One piece of evidence of international confidence in the Indonesian economy is the steady upgrades in the country's credit ratings by international financial services companies such as Standard & Poor's, Fitch Ratings and Moody's. In late 2011, Fitch Ratings was the first to reinstate Indonesia's investment grade status after a 14-year hiatus. In January 2012, Moody’s followed suit citing the country’s resilient economy. S&P may follow soon, depending on the fuel price hike issue.
Last week Indonesia's main stock index (IHSG) was mixed with a weakening trend. The index lost 19.9 points, equivalent to 0.40 percent of its value. During the last month, the index consolidated within the range of 4,800 and 5,030 points. Foreign funds continued to pour in and trade volume remained high although below average trade in the last three weeks. In fact, our technical indicators are showing signs that Indonesia's main stock index has become saturated.
On Friday's trading day, the Indonesia Stock Index (IHSG) started in an upward direction. However, as it felt the impact of European stock indices, that mostly opened lower, the IHSG weakened 0.32 percent to 4,978.51 points. Moreover, most other Asian indices were down (except for Hong Kong's HSI) and thus contributed to the IHSG's fall. Market participants also seem to fear the annual 'May Cycle' of the IHSG, which involves the traditional large-scale selling of IHSG stocks.
The heavily subsidized fuel price of Indonesia is likely to be raised next month according to Indonesian media sources. Various high officials, including Economic minister Hatta Rajasa, discussed the possibility to raise the fuel price from IDR 4,500 (USD $0.46) to IDR 6,500 (USD $0.67) per liter starting from May. This increase will only apply to private passenger cars, and not to motorcycles and public transportation. However, president Susilo Bambang Yudhoyono has not made up his mind yet.
