Below is a list with tagged columns and company profiles.

Latest Reports Inflation

  • Consumer Confidence in Indonesia Rises on Lower Fuel Prices

    The latest Consumer Confidence Survey released by Indonesia’s central bank indicated that Indonesian consumers were more optimistic in January 2015 (compared to the previous month) on the back of recent fuel price cuts. The index, based on a total of 4,600 households across 18 major Indonesian cities, climbed to 120.2 points in January, up from 116.5 in the preceding month (a score above 100 signals consumer optimism). In December the index had declined due to higher administered fuel prices.

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  • Indonesia Investments' Newsletter of 2 February 2015 Released

    On 2 February 2015, 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 matters such as an update on January inflation and the December 2014 trade balance, foreign direct investment, palm oil export, car sales, a land reclamation project, and more.

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  • Macroeconomy Indonesia: Inflation, Trade Balance and Manufacturing

    Indonesia’s inflation eased significantly in January 2015 to 6.96 percent year-on-year (y/y) from 8.36 percent (y/y) in December 2014 as the government’s January fuel price cut translated into lower transportation costs across Southeast Asia’s largest economy. In January, the Joko Widodo administration cut fuel subsidy spending and moved a step closer to a full market-based price mechanism for low-octane gasoline and diesel. As a result - amid low global oil prices - prices of diesel and gasoline fell by an average of 14 percent.

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  • Inflation Outlook Indonesia January 2015: Impact of Fuel Policy

    Inflation in Indonesia is expected to have eased to 7.50 percent year-on-year (y/y) in January 2015 on the back of cheaper domestic fuel prices (triggered by sliding global oil prices). The month-on-month pace (m/m) in the first month of 2015 may have tumbled to near zero percent from 2.46 percent (m/m) in December 2014. Last year, Indonesian inflation had accelerated to 8.36 percent (y/y) primarily due to the implementation of higher prices for government administered low-octane gasoline and diesel in November 2014.

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  • Indonesian Authorities Revise Economic Assumptions in 2015 Budget

    The Indonesian government, central bank (Bank Indonesia) and Commission XI of the House of Representatives (DPR) agreed to revise several macroeconomic targets in the Revised 2015 State Budget (APBN-P 2015). The revisions include the country’s economic growth (GDP) pace, the average rupiah exchange rate, and inflation target. In essence, the revisions indicate that Indonesian authorities have become less optimistic about the Indonesian economy in 2015 amid external pressures.

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  • Indonesia’s 2014 Car Sales Decline amid Slowing Economic Growth

    Domestic car sales in Indonesia were slightly down in 2014 compared to the previous year. Amid the slowing economy (Indonesia’s GDP growth may have fallen from 5.8 percent in 2013 to 5.1 percent in 2014) and political uncertainty (triggered by the fragmented results of the country’s legislative and presidential elections) car sales totaled 1.21 million units in 2014, down 1.8 percent from 1.23 million sold vehicles in 2013, according to the latest data from the Indonesian Automotive Industry Association (Gaikindo).

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  • Key Interest Rate: Bank Indonesia Maintains BI Rate at 7.75%

    The central bank of Indonesia (Bank Indonesia) decided to keep its benchmark interest rate (BI rate) at 7.75 percent at its Board of Governors’ Meeting on Thursday (15/01). The country’s Lending Facility and Deposit Facility were maintained at 8.00 percent and 5.75 percent, respectively. According to the bank this interest rate environment is sufficient to push inflation, which has accelerated to 8.36 percent year-on-year (y/y) in December due to fuel subsidy reforms, back towards its target of 3 to 5 percent (y/y) in 2015.

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  • Deutsche Bank Gives Positive Assessment of Indonesian Bonds

    Despite pressures on the rupiah exchange rate amid a bullish US dollar ahead of monetary tightening in the USA, the Deutsche Bank, one of the world's leading financial service providers, holds a positive view on Indonesian bonds due to Indonesia’s recent fuel subsidy reforms and solid macroeconomic fundamentals. According to the German lender, Indonesian bond yields seem to have decoupled from the currency’s recent depreciating trend although “continued foreign exchange stress could eventually lead to capitulation from bond investors.

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  • Fuel Policy of Indonesia: Prices of Gasoline & Diesel to be Cut Further

    Indonesia’s Chief Economics Minister Sofyan Djalil said that Indonesia will further reduce prices of low-octane gasoline and subsidized diesel at the end of this month as global oil prices continue to fall (touching five-year lows). On 1 January 2015, the Indonesian government had already removed subsidy for widely-used low-octane gasoline (premium), while a fixed subsidy scheme was introduced for diesel (solar) meaning that the government now provides a subsidy of IDR 1,000 (USD $0.08) per liter of diesel.

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  • Currency Update: Indonesia’s Rupiah Continues to Weaken against US Dollar

    Indonesia’s rupiah exchange rate continued to depreciate on Wednesday (07/01). Based on the Bloomberg Dollar Index, the currency had depreciated 0.66 percent to IDR 12,731 per US dollar by 15:50 pm local Jakarta time amid prolonged weak global sentiments. Falling oil prices signal sluggish global economic growth - with the exception of the US economy which is showing structural recovery and thus fuels expectation of higher US interest rates - and speculation that Greece may exit the Eurozone.

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Latest Columns Inflation

  • April Inflation Update Indonesia: Consumer Price Index up 0.36% m/m

    Statistics Indonesia (BPS) announced on Monday morning (04/05) that Indonesia’s inflation accelerated to 6.79 percent year-on-year (y/y) in April 2015. On a month-to-month basis, Indonesian inflation was recorded at 0.36 percent in April. Although this result is in line with analysts’ previous projections, April inflation realization is in sharp contrast with the ‘usual’ inflation pace in the fourth month of the year. Usually, Indonesia records slight deflation in April as prices ease amid the peak of the harvest season.

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  • Inflation Update Indonesia: "April Inflation Higher than Usual"

    Inflation in Indonesia is expected to accelerate to 6.80 percent year-on-year (y/y) in April 2015, from 6.38 percent y/y in the previous month, according to the central bank of Indonesia (Bank Indonesia). As global oil prices have somewhat recovered from their recent lows, they add inflationary pressures in Indonesia (higher transportation costs). On a month-on-month (m/m) basis, Indonesian inflation is expected to be around 0.35 percent in April. This figure would be in sharp contrast to ‘normal’ April inflation.

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  • Bank Indonesia Press Release: BI Rate Maintained at 7.50%

    Indonesia’s central bank (Bank Indonesia) decided to maintain its benchmark interest rate (BI rate) at 7.50 percent, the deposit facility rate at 5.50 percent and lending facility rate at 8.00 percent. This interest rate environment is considered to be in line with the central bank’s ongoing efforts to push the country’s inflation figure within its target of 4±1 percent for 2015 and 2016, as well as to control the country’s current account deficit towards a healthier level at 2.5-3 percent of gross domestic product (GDP) in the medium term.

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  • News Update Indonesia: Inflation Remains under Control in 2015

    According to the latest data from Statistics Indonesia (BPS), Indonesia recorded monthly inflation of 0.17 percent in March 2015. It was the first month this year in which Indonesia recorded inflation. In January and February Indonesia experienced deflation of 0.24 percent (m/m) and 0.36 (m/m), respectively. March inflation was primarily the result of administered price adjustments: higher prices of (low-octane) gasoline, diesel and 12-kg LPG canisters. These adjustments were necessary amid rising oil prices and rupiah depreciation.

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  • Interest Rate Environment: Why Bank Indonesia Left it Unchanged?

    Indonesia’s central bank (Bank Indonesia) decided to hold the country’s key interest rate (BI rate) at 7.50 percent, the deposit facility rate at 5.50 percent, and the lending facility rate at 8.00 percent at the Board of Governor’s Meeting conducted on Tuesday 17 March 2015. Bank Indonesia said that its decision is in line with its ongoing efforts to push inflation back to the target range of 4±1 percent for both 2015 and 2016, and to guide the country’s current account deficit towards a healthier level at 2.5-3 percent of GDP in the medium term.

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  • Economy of Indonesia: Inflation, Trade, Interest Rates & Rupiah Update

    Indonesia’s consumer price index fell for the second consecutive month in February 2015, recording deflation of 0.36 percent month-on-month (m/m) in February, while on an annual basis Indonesian inflation eased to 6.29 percent (y/y), down from 6.96 percent (y/y) in the preceding month. Inflationary pressures declined primarily on the back of lower prices of chili peppers and fuel. Easing inflation in Southeast Asia’s largest economy may provide room for Indonesia’s central bank (Bank Indonesia) to cut interest rates further this year.

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  • Analysis Performance of the Indonesian Rupiah Exchange Rate

    The Indonesian rupiah exchange rate continued to depreciate on Monday (02/03). According to the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.30 percent to IDR 12,970 per US dollar, a six-year low. Apart from general bullish US dollar momentum in recent months (amid monetary tightening in the USA), the rupiah weakened due to Bank Indonesia’s signals that it tolerates a weaker currency in a move to boost exports (limiting the country’s current account deficit), and due to China’s interest rates cut.

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  • Bank Indonesia Lowers Key Interest Rate in Surprise Move

    In a surprise move, the central bank of Indonesia (Bank Indonesia) decided to lower its key interest rate (BI rate) by 25 basis points to 7.50 percent at the Board of Governor’s Meeting on Tuesday (17/02). The deposit facility rate (Fasbi) was also lowered by 25 basis points (to 5.50 percent), while the lending facility rate remained steady at 8.00 percent. In a press release the central bank stated that the current policy direction is estimated to moderate the country’s wide current account deficit further, while inflation remains under control.

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  • Update Indonesian Rupiah & Stocks: Why they Strengthened Today

    The Indonesian rupiah exchange rate appreciated and Indonesian stocks rose on Wednesday (04/02) on the back of rallying oil prices, a successful bond auction, easing tensions in Europe, and weak US factory orders. Based on the Bloomberg Dollar Index, Indonesia’s rupiah appreciated 0.21 percent to IDR 12,630 per US dollar on Wednesday (04/03). Meanwhile, the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) climbed 0.45 percent to 5,315.28 points.

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  • Trade Balance of Indonesia Improved in 2014

    The trade balance of Indonesia improved in 2014. Over the whole year of 2014 Indonesia posted a USD $1.88 billion trade deficit, significantly better than the USD $4.08 billion deficit it recorded a year earlier. Today (02/02), Statistics Indonesia announced that Indonesia posted a USD $0.19 billion trade surplus in the last month of the year after having recorded a USD $0.42 billion trade deficit in the preceding month. The improved performance is mainly due to the country’s growing non-oil & gas surplus and narrowing oil & gas deficit.

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