Below is a list with tagged columns and company profiles.

Latest Reports Inflation

  • Indonesia Investments' Newsletter of 27 April 2014 Released

    On 27 April 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic topics such as investment realization in Q1-2014, a revision of the Negative Investment List, company profiles of Adaro Energy and Astra Agro Lestari, and more.

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  • Projections Indonesia's April 2014 Inflation and March 2014 Trade Balance

    Head of Statistics Indonesia (Badan Pusat Statistik or BPS) Suryamin said that inflation in April 2014 is estimated to be low or will turn into deflation as food stockpiles in a number of regions are sufficient amid the peak of the harvest season. Suryamin based his estimation on BPS monitoring conducted from 17 April. The monitoring indicated that prices of the main food commodities (which include rice, chili, chicken meat, cooking oil as well as beef) are stable or even declining from the previous month.

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  • IMF Hopes that Indonesia Will Continue the Economic Reform Agenda

    The International Monetary Fund (IMF) praised the Indonesian government's policy approach to safeguard the country's financial stability amid external shocks in 2013 and hopes that the new government, which will be inaugurated in October 2014, continues the economic reform agenda. Changyong Rhee, Director of the IMF's Asia Pacific Department, said that Indonesia - Southeast Asia's largest economy - is currently on the right track and forecast to grow 5.4 percent in 2014, slightly lower than the 5.78 percentage growth in 2013.

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  • Car and Motorcycle Sales in Indonesia Recover in March 2014

    Car and motorcycle sales increased rapidly in Indonesia throughout March 2014, primarily due to an improved distribution network. In the previous months, heavy rains amid a peak of the rainy season (causing floods in various parts of Indonesia) resulted in the postponement of car and motorcycle purchases. Data from the Association of Indonesian Automotive Industries (Gaikindo) indicated that car sales surged 18 percent (year-on-year, yoy) to 113,277 units in March 2014, while motorcycle sales grew 9.2 percent (yoy) to 728,820 units.

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  • Bank Indonesia: Consumer Confidence in Indonesia Remains Strong

    Indonesian consumer confidence continued to grow in March 2014. According to the latest survey of Indonesia's central bank (Bank Indonesia), the country's consumer confidence rose to 118.2 in March from 116.2 one month earlier. Indonesians are particularly optimistic about domestic economic conditions over the next six months, evidenced by a 3.2 point rise in the Consumer Expectations Index to 123.9 points. Increasing consumer confidence is positive for household consumption, an important pillar of Indonesia's economic growth.

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  • Indonesian Rupiah Exchange Rate Moves Sideways on Friday

    The Indonesian rupiah exchange rate moved rather sideways on Friday (04/04). Based on the Bloomberg Dollar Index, the currency appreciated 0.06 percent to IDR 11,316 per US dollar. Most emerging Asian currencies tended to depreciate against the greenback as the market is waiting for US unemployment data, released later today. Overall, market participants remain confident in Indonesia's economic fundamentals as inflation eased to 7.32 percent (yoy) in March, while the country posted a trade surplus of USD $785 million in February.

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  • Market Waiting for Economic Data; Indonesian Rupiah Depreciates 0.25%

    The Indonesian rupiah exchange rate depreciated 0.25 percent to IDR 11,323 per US dollar on Thursday (03/04) according to the Bloomberg Dollar Index. Analysts Rangga Cipta (Samuel Sekuritas Indonesia) and Zulfirman Basir (Monex Investindo Futures) expect the rupiah to move sideways or weaken toward the end of the week as the market is waiting for various data, including the meeting of the European Central Bank regarding its interest rate (03/04), US unemployment, US nonfarm payrolls and US ISM Non-Manufacturing PMI.

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  • Notes on Indonesia's GDP Growth, Current Account and Investment

    The Asian Development Bank (ADB) expects Indonesia's economic growth this year to slow slightly compared to the 5.78 percent growth rate recorded in 2013. ADB's Country Director for Indonesia, Adrian Ruthenberg, said that GDP growth of Southeast Asia's largest economy is expected to slow to 5.7 percent in 2014 but will accelerate to 6 percent in 2015. The ADB's forecast is based on the assumption that Indonesia's legislative and presidential elections will run smoothly as well as continued government effort to improve the investment climate.

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  • Inflation Update: Indonesia Records 0.08% of Inflation in March 2014

    On Tuesday (01/04), Statistics Indonesia announced that Indonesia's March 2014 inflation rate was recorded at 0.08 percent, considerably lower than February 2014 inflation (0.26 percent) and March inflation in 2013 (0.63 percent). Factors that contributed to lower than expected March inflation were a decline in prices of food commodities due to the start of the harvest season, and the appreciating rupiah, which neutralized imported inflation. On a year-on-year basis, Indonesian inflation eased to 7.32 percent from 7.75 percent in February 2014.

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  • Inflation Update Indonesia: Low Inflation or Deflation Expected in March 2014

    Statistics Indonesia (BPS) expects inflation in March 2014 to be kept below the one percent mark due to the arrival of the harvest season. Prices of several commodities, including rice, beef, chicken meet and chili, are expected to ease. In fact, BPS official Sasmito Hadi Wibowo stated that there is a chance on deflation in March 2014. Historically, Indonesia's inflation in March and April tends to be low, particularly in the latter as the harvest season reaches its peak. In 2013, Indonesia recorded inflation at 0.63 percent in March.

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Latest Columns Inflation

  • Higher BI Rate Causes Indonesia's Rupiah and Stock Index to Fall

    Higher BI Interest Rate Causes Indonesia's Rupiah and Stock Index to Fall

    Indonesia's Jakarta Composite Index (IHSG) started Tuesday's trading day (12/11) slightly in the red. However, after the central bank of Indonesia (Bank Indonesia) announced to have raised its benchmark interest rate (BI rate) by 25 bps to 7.50 percent, the IHSG quickly plunged. The interest rate hike is considered as a sign that Bank Indonesia is still concerned about the nation's macroeconomy, particularly Indonesia high inflation (8.32 percent yoy in October 2013). The index fell 1.38 percent to 4,380.64 points.

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  • Bank Indonesia Raises Benchmark Interest Rate (BI Rate) to 7.50%

    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.

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  • Indonesian Economic and Financial Update: Challenges in October

    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 October 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:

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  • Popular Low Cost Green Car Boosts Indonesian Car Sales in 2013

    Indonesian car sales have already exceeded the one million mark in October 2013. In the January-October period, 1,018,786 car units were sold, a ten percent increase compared to car sales in the same period last year. Growing demand for cars in Indonesia indicates that this sector of Southeast Asia's largest economy is not influenced by current negative market sentiments, such as the sharply depreciated Indonesian rupiah exchange rate (against the US dollar), high inflation (8.32 percent yoy in October 2013), and slowing economic growth.

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  • Analysis of Indonesia’s 5.62% Economic Growth Rate (GDP) in Q3-2013

    Indonesia will most likely not meet its original GDP growth target of 6.3 percent (stipulated in the 2013 State Budget). Yesterday (06/11), it was announced by Statistics Indonesia that Indonesia’s GDP growth figure in the third quarter of 2013 was recorded at 5.62 percent (year-on-year, yoy), the weakest quarterly growth figure since 2009 when the global financial crisis impacted on Southeast Asia’s largest economy. In 2013, Indonesia feels the global impact again, in combination with domestic factors.

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  • Analysis and Forecast of Indonesia's Jakarta Composite Index (IHSG)

    Last week, the Jakarta Composite Index (IHSG) weakened. The benchmark stock index of Indonesia was affected by negative market sentiments brought on by domestic factors. Most importantly, the large-scale demonstrations across Indonesia by Indonesian workers who demanded for higher minimum wages as annual inflation has surged since June 2013 after prices of subsidized fuels were raised. These demands, however, jeopardize the attractiveness of Indonesia's investment climate.

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  • Analysis of Indonesia's October Inflation and September Trade Deficit

    Indonesia's October inflation rate was well-received by investors. On Friday (01/11), Statistics Indonesia (BPS) announced that the country's inflation in October 2013 grew 0.09 percent. Easing inflation was mainly due to falling prices of raw foods and clothes. Year-on-year (yoy), however, Indonesia's inflation is still high at 8.32 percent, although showing a moderating trend from 8.40 percent (yoy) in September 2013 and 8.79 percent (yoy) in August 2013. Inflation had skyrocketed after subsidized fuel prices were raised by an average 33 percent in June.

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  • Indonesia’s Slowing Economic Growth: the Case of Private Consumption

    Forecasts for Indonesia’s gross domestic product (GDP) growth in 2013 and beyond have been revised down by all institutions, including the Indonesian government and central bank as well as international organizations such as the World Bank and the International Monetary Fund (IMF). Initially, the country’s economic growth was expected to reach around 6.5 percent in 2013. However, most institutions have downgraded forecasts for the country’s economic growth to below the 6.0 percent mark.

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  • After Public Holiday Indonesia's Benchmark Stock Index Falls 0.61%

    The benchmark stock index of Indonesia (IHSG) was down 0.61 percent to 4,492.26 on its first trading day after the Idul Adha celebrations (when Muslims remember that Abraham was willing to sacrifice his son to God). The main reason why the IHSG was down on Wednesday (16/10) was due to continued uncertainty about the US debt ceiling issue, while the deadline (17/10) is closing in. Fitch Ratings put US Treasury bonds on Rating Watch Negative, which might be a first step before a downgrade.

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  • Indonesia's Cement Sales Continue to Slow amid Weaker Property Sector

    According to the Indonesian Cement Association (ASI), cement sales in Indonesia reached 41.6 million tons in the first three quarters of 2013, a 5.3 percent increase compared to domestic cement sales in the same period in 2012 (39.5 million tons), while Indonesia's cement exports jumped by 187 percent to 503 thousand tons. As such, total cement sales from January to September 2013 grew 6.2 percent to 42 million tons. Meanwhile, Semen Indonesia, Indonesia's largest cement producer, managed to expand its market share.

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