US Vice President Mike Pence plans to visit Indonesia next week. Indonesia is Pence's third stop during his April 15-25 Asia-Pacific tour. Aim of this short tour is to safeguard and enhance good relations with several Asia-Pacific nations, including Indonesia, as well as boosting regional security cooperation. However, there is plenty of resistance to Pence's visit to Indonesia. Some say he could better cancel the visit as the visit would put the Indonesian government in an awkward position.

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Indonesia's benchmark Jakarta Composite Index fell on Friday (07/04), in line with the performance of most Asian stock markets, after the USA attacked a Syrian air base with 59 cruise missiles in the early morning hours. This attack contributed to the "risk-off" sentiments in Asia today (with the exception of the Philippines where stocks rose on expectation of good GDP growth in Q1-2017). Indonesia's benchmark stock index fell 0.47 percent to 5,653.49 points at the week's last trading day.

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It was a good day for Indonesian stocks on Wednesday (29/03) as the nation's benchmark Jakarta Composite Index (IHSG) hit a new record high at 5.592.51 points, one day after Indonesian markets had been closed for a public holiday. Not only Indonesia but most Asian stocks rose on Wednesday - in line with expectations - following Wall Street higher overnight where the Trump stock rally seems back on track, especially after positive new economic data.

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As part of his Asia-Pacific tour, US Vice President Mike Pence plans to visit Indonesia in April 2017. Any dates have bot been finalized yet and therefore the tour has not been announced officially yet. However, an official within the administration of US President Donald Trump said Pence is making the Asia-Pacific tour next month in order safeguard and enhance good relations with several Asia-Pacific nations.

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The central bank of Indonesia (Bank Indonesia) is also among the many institutions or market participants that expect the Federal Reserve to raise its Fed Funds Rate by 25 basis points at the coming Federal Open Market Committee (FOMC) meeting (14-15 March 2017). This move should put some temporary pressure on the Indonesian rupiah (as Indonesia will most likely see capital outflows) and therefore Bank Indonesia sees few to none room for additional monetary easing in Southeast Asia's largest economy in the remainder of this year.

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Indonesia's exports of footwear to the United States (USA) are expected to reach the value of USD $1.5 billion in 2017, up 12 percent year-on-year (y/y) from USD $1.34 billion last year. This increase is expected to come on the back of US President Donald Trump's eagerness to limit imports from China by introducing higher tariffs. This policy should now open up opportunities for Indonesian footwear exporters.

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Indonesia's benchmark Jakarta Composite Index fell 0.32 percent to 5,391.21 points on Friday (03/03), while the Indonesian rupiah depreciated 0.19 percent to IDR 13,383 against the US dollar (Bloomberg Dollar Index). The performance of Indonesian stocks and the currency was in line with the performance of its counterparts in Asia. Asian shares were tracking losses on Wall Street overnight where profit-taking kicked in as US indices have been in rally-mode since Donald Trump won the presidential election in November 2016.

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Indonesia's benchmark Jakarta Composite Index (IHSG) surged 1.06 percent to 5,421.54 points shortly before closing on Thursday (02/03) as most Asian stock indices were in the green zone, lifted by the performance of Wall Street overnight. Indonesian stocks were actually the best performing stocks across Asia today. To explain why Indonesian stocks performed so well today, we need to look first at US stocks' performance overnight. It is all related to Trump's latest speech.

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Despite US dollar strength amid promised tax cuts in the USA and looming higher US interest rates, the Indonesian rupiah is not expected to depreciate as much as its Asian counterparts according to the DBS Bank. On Wednesday (01/03) the rupiah weakened 0.19 percent to IDR 13,363 per US dollar (Bloomberg Dollar Index). So far this year, however, the rupiah has strengthened nearly one percent against the greenback.

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Investment in Indonesia is expected to rise in 2017. This covers both direct investment and portfolio investment. Domestic direct investment (DDI) should grow on the back of Indonesia's low interest rate environment (making it cheaper for domestic investors to purchase credit) as well as higher capital injections (from the state budget) into Indonesia's state-owned enterprises. Meanwhile, foreign direct investment (FDI) is expected to rise on the back of Indonesia's accelerating economic growth and government reforms. Both FDI and DDI should also rise amid rising commodity prices.

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The economic growth rate of Indonesia in the first quarter of 2025 (Q1-2025) came in slightly below our projection of 4.9 – 5.0 percent year-on-year (y/y). But, indeed, we had already detected a (general) weakening in internal and external conditions, which was reflected in the macroeconomic data of Indonesia that we discussed in our April 2025 report. And so, it was certainly not a shock.

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There is a major difference between US President Donald Trump’s first term in office (in 2017-2021) and his second term in office (that started in January 2025). And, it is a difference that is felt (quite heavily) across the globe.

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US President Donald Trump's recent tariffs have affected markets beyond the Americas. The ripple effects of the US tariffs have brought fresh trading opportunities and new challenges to mixed economies like Indonesia and the Southeast Asian market. As Southeast Asia's largest economy, Indonesia is at the forefront of foreign policies that impact international trade.

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This month, our report is completed at a time when Indonesian society is celebrating Idul Fitri, the festivities that mark the end of the holy Ramadan month (the fasting month for Muslims). In fact, the holiday period started on 21 March 2025 for school-children, while society as a whole has an official national holiday from 28 March to 7 April 2025.

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The reason why we frequently discuss Indonesia’s financial markets (especially the stock and money markets) in our monthly reports is because these markets reflect the degree of confidence there exists among domestic and foreign investors (which involves individuals as well as the big corporations) in global political and economic conditions and in the economic and fiscal fundamentals of Indonesia.

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When Indonesian President Prabowo Subianto made his first speech as president on 20 October 2024, he stated that Indonesia seeks a “free and active non-aligned path. We don’t want to join any military pacts, [instead] we choose a friendly path with all countries.”

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In terms of politics, the most interesting developments in June 2024 probably came from abroad. Firstly, on 28 June 2024, US President Joe Biden (aged 81) and former President Donald Trump (aged 78) squared off for the first presidential debate of the US election season. It’s worth taking a quick look at this debate as it will influence who will become leader of the world’s biggest political and economic force.

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An alarming report was released by the World Trade Organization (WTO) on 1 October 2019. In the report the WTO notes that ongoing global trade tensions, led by tariff troubles between the United States and China, are doing harm to global economic growth in ways not seen since the financial crisis one decade ago.

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The global environment has not improved in August 2019. In fact, it has deteriorated as reflected by declining stock indices in most parts of the world as well as a record-setting trend for the price of gold (known for being one of the world’s crucial safe haven assets).

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U.S. stock markets continue to hover near record levels as trade policy conversations between President Donald Trump and President Xi Jinping define the relationship between the world’s two largest economies. The Dow Jones Industrial Average is currently trading just shy of 26,000, which is a psychological level that is often closely-watched by the financial markets.

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