Below is a list with tagged columns and company profiles.

Today's Headlines Inflation

  • Update Indonesia's Current Account Deficit and Foreign Exchange Reserves

    Indonesian Finance Minister Chatib Basri said that the country's current account deficit, the broadest measure of international transactions, may widen in the second quarter of 2014 as many local companies engage in business expansion. Such expansion usually triggers an increased amount of imports, thus impacting on the trade balance. A widening current account deficit in the second quarter of the year is a normal trend. The balance usually improves in the third and fourth quarters.

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  • Higher Domestic Consumption and Inflation during Ramadan and Lebaran

    Bayu Krisnamurthi, Indonesian Deputy Trade Minister, expects that domestic consumption will rise by approximately 40 percent during the holy Islamic fasting month of Ramadan, which starts on 28 June 2014, and subsequent Idul Fitri (Lebaran) celebrations. Traditionally, this period of festivities brings along inflationary pressures as consumers spend more money on food, transportation, clothes and souvenirs. Moreover, Krisnamurthi stated that the center of consumption will shift to the regions.

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  • Indonesia Investments' Newsletter of 25 May 2014 Released

    On 25 May 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 political and economic topics such as updates on the presidential election, a new high profile corruption case, fuel subsidies, oil & gas tenders, a stock market update, and more.

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  • Chairul Tanjung Expects Deflation in May 2014 due to Stable Food Prices

    Indonesian newly installed Coordinating Minister for Economic Affairs Chairul Tanjung expects deflation in May 2014 due to stable prices of the main agricultural and food commodities. After Tanjung was appointed to replace Hatta Rajasa, who resigned from his post to focus on his vice-presidential bid in the July presidential election, Tanjung announced that he will prioritize policies that foster stable food prices as well as fiscal stability. In April 2014, Indonesia recorded deflation of 0.02 percent (month-to-month).

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  • Bank Indonesia Maintains Interest Rates as Inflation & Trade Data Improve

    At the Board of Governors Meeting (08/05), Bank Indonesia decided to keep its benchmark interest rate (BI Rate) at 7.50 percent, the Lending Facility at 7.50 percent and the Deposit Facility at 5.75 percent. Bank Indonesia considers this monetary policy consistent with efforts to direct inflation back to its target level of 4.5 ± 1 percent in 2014 and 4.0 ± 1 percent in 2015, as well as to further ease the country's current account deficit to a more sustainable level. On Friday, Bank Indonesia is expected to release current account data covering Q1-2014.

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  • Indonesia Investments' Newsletter of 4 May 2014 Released

    On 4 May 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 macroeconomic assumptions of the Indonesian government, April inflation, the March trade balance, April manufacturing, an update on the rupiah, the 2014 presidential election, and more.

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  • Bank Indonesia Releases the '2013 Economic Report on Indonesia'

    The central bank of Indonesia (Bank Indonesia) released its '2013 Economic Report on Indonesia' earlier this week. This report discusses in great detail both global and domestic economic dynamics as well as policy responses. The year 2013 was a year full of challenges for the Indonesian economy because of changes in global economic conditions (US Federal Reserve tapering), requiring a range of structural policy changes to steer the economy of Indonesia towards a more balanced growth and restored macroeconomic stability.

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  • Indonesia Inflation Update: Deflation of 0.02% Recorded in April 2014

    On Friday (02/05), Statistics Indonesia announced that Indonesia recorded deflation of 0.02 percent in April 2014. This outcome is in line with analysts' previous forecasts. The months April and May usually bring deflation or low inflation to Indonesia due to the traditional peak of the harvest season. The annual inflation rate of Indonesia has now eased to 7.25 percent (year-on-year) in April 2014, while calender year inflation declined slightly to 1.39 percent. Of the 82 Indonesian cities, 39 experienced deflation.

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  • 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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Latest Columns Inflation

  • Bank Indonesia Takes Steps to Maintain Macroeconomic Stability

    Similar to the Indonesian government, Indonesia's central bank also announced a fiscal policy package to support sustainable nationwide economic growth by curbing inflation, maintaining a more sustainable balance of payments as well as strengthening financial system stability. These additional policies are expected to synergise with the policy package unveiled by the government on Friday (23/08). These measures were taken as both the rupiah and Indonesia's main stock index (IHSG) are in a downward spiral.

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  • Despite Government's 'Rescue Package' IHSG and Rupiah Weaken

    Today's release of the economic rescue package was not able to put Indonesia's main stock index (IHSG) into green territory. Also, the Indonesian rupiah maintained its losing streak. The IHSG fell 0.04 percent to 4,169.83 points. Interestingly enough, the IHSG was rising previous to the release of the package. After the release, however, it started to weaken slightly, which seems to indicate that market participants were a bit disappointed with the contents of the package as it contained no quick fixes to the economy.

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  • Indonesian Government Releases 'Emergency Plan' to Support Economy

    As had been announced previously, today (23/08) the government of Indonesia released an 'emergency plan' that aims to improve the financial sector while restoring confidence in the country's fundamentals as turmoil emerged on Indonesia's stock exchange, bonds market and the rupiah. Economic minister Hatta Rajasa said that this plan consists of four packages. These four packages cover the current account deficit, rupiah performance, economic growth, purchasing power, inflation and investments.

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  • Indonesia's Benchmark Stock Index (IHSG) and Rupiah Continue Its Fall

    On Thursday (22/08), Indonesia's main stock index (IHSG) was not able to continue the rebound that occurred yesterday when the country's biggest pension fund, Jamsostek, began buying blue-chip stocks in a move to support the ailing index. Indonesia's benchmark index has now lost about 20 percent since its record peak in May 2013. Today, it fell 1.11 percent to 4,171.41 points. Eight sectoral indices weakened, of which the top losers were construction (-5.78 percent), basic industry (-3.42 percent), and finance (-2.39 percent).

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  • Concern over Ailing Rupiah Intensifies; Government Prepares Package

    Concerns about Indonesia's weakening rupiah intensified on Wednesday (21/08) as the currency is now balancing on the psychological boundary of IDR 11,000 per US dollar. The rupiah continued its downward spiral today although its decline was limited due to the intervention of Indonesia's central bank (Bank Indonesia) that started selling US dollars again in an effort to support the rupiah. According to data compiled by Reuters, the rupiah has now fallen 10.7 percent this year.

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  • Indonesia Stock Index (IHSG) and Rupiah Are Extending its Losing Streak

    On Tuesday (20/08), Indonesia's benchmark stock index (IHSG) continued its decline with its fourth consecutive day of losses. Amid major concerns about Indonesia's economic growth, high inflation, tighter monetary policy and current account deficit, the IHSG fell 3.21 percent to 4,174.98 points. It means that the index now stands about 21 percent lower than its record peak in May 2013. Foreign investors have been pulling money out of the Indonesian market. According to Bloomberg, about USD $255 million has been retracted in the last two days.

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  • Why Did Indonesia's Main Stock Index (IHSG) Fall on Monday?

    Why Did Indonesia's Main Stock Index (IHSG) Fall on Monday?

    Analysts expect that Indonesia's benchmark stock index (IHSG) will end mixed today (20/08) after yesterday's large plunge amid heavy market concerns. Yesterday, the index dropped 5.58 percent to 4,313.52 points, the lowest since October 2011. Indonesia posted a current account deficit in the second quarter of 2013, while Thailand entered into a recession. The MSCI Emerging Market index¹, which includes both countries, fell 1.4 percent to a six-week low. Below a short overview of factors that caused negative sentiments on Indonesia's market.

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  • Indonesia's Main Stock Index (IHSG): the Ship that is Rocked by a Storm

    For several weeks now, Indonesia's main stock index (IHSG) has been experiencing a sharp correction. As I wrote in my previous columns, market participants have been waiting for several important macro economic data, to wit Indonesia's economic growth figure for the second quarter of 2013, the July 2013 inflation rate, and the country's trade balance statistics for the first six months of this year. Now all above results have been released, we can analyze further the impact of these macroeconomic results as well as investors' reaction to it.

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  • Indonesia's Foreign Exchange Reserves Fall, Current Account Deficit Grows

    The foreign exchange reserves of Indonesia keep on falling from its historical peak of USD $124.64 billion in August 2011 to USD $92.67 billion at the end of July 2013. This development seems to highlight long-standing weaknesses in Indonesia's sovereign's external finances, as credit agency Fitch Ratings detected on several occasions before. The republic of Indonesia is currently characterized by four deficits, to wit a current account deficit, a balance of payments deficit, a trade balance deficit and a fiscal deficit.

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  • Slowing Growth in Indonesian Cement Sales Continues in Semester II

    Cement sales in Indonesia grew by seven percent to 32.9 million tons in the period January to July 2013. This pace of growth is significantly lower compared to the double-digit cement growth rate last year and thus forms another sign of cooling economic growth in Southeast Asia's largest economy (cement sales are a good indicator to measure the state of economic growth of a country). A slowdown in domestic cement sales is likely to continue in the second half of 2013, partly due to a decline in infrastructure projects.

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