Below is a list with tagged columns and company profiles.

Today's Headlines Inflation

  • Consumer Price Index: Indonesian Inflation Eases Below Central Bank’s Target Range

    Consumer Price Index: Indonesian Inflation Eases Below Central Bank’s Target Range

    Based on the latest data from Statistics Indonesia (BPS), which were released on 1 April 2019, Indonesian consumer prices continued to ease in March 2019 (in line with estimates). However, what is remarkable is that Indonesia’s annual inflation rate – 2.48 percent (y/y) in March 2019 – fell below the central bank’s target range (Bank Indonesia has set its inflation target for full-year 2019 at the range of 2.5–4.5 percent y/y). Indonesia’s latest inflation figure is the nation’s lowest inflation since December 2009. By Indonesian standards, inflation is currently remarkably low, hence it should manage to encourage household consumption.

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  • Consumer Price Index: Indonesia’s 2018 Inflation Slightly Below Our Forecast

    Consumer Price Index: Indonesia’s 2018 Inflation Slightly Below Our Forecast

    For the 4th year in a row Indonesian inflation was under control. Based on data from Indonesia’s Central Statistics Agency (BPS), the nation’s annual headline inflation rate was 3.13 percent in full-year 2018. By Indonesian standards, that is a low inflation figure. The final figure even fell below the central government’s 3.5 percent (y/y) target that was set in the 2018 state budget and it fell below our (revised) prediction of 3.25 percent (y/y). But it did fall conveniently within the central bank’s wide target range of 2.5 – 4.5 percent (y/y).

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  • Consumer Price Index Indonesia: Deflation at 0.18% in September 2018

    Consumer Price Index Indonesia: Deflation at 0.18% in September 2018

    Based on the latest data of Indonesia's Statistics Agency (BPS), Indonesia experienced deflation of 0.18 percent month-on-month (m/m) in September 2018, a figure that exceeded our expectations. Consequently, Indonesia's annual inflation slowed to a two-year low of 2.88 percent (y/y), down from 3.20 percent (y/y) in August 2018. Year to date, Indonesian inflation eased to 1.94 percent in the January-September 2018 period.

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  • Consumer Price Index Indonesia: 0.05% of Deflation in August 2018

    Consumer Price Index Indonesia: 0.05% of Deflation in August 2018

    Indonesia's consumer price index experienced 0.05 percent deflation on a month-on-month (m/m) basis in August 2018, while we had actually expected to see modest inflation (considering imported inflation is bound to rise amid rupiah weakness). However, Suhariyanto, Head of Indonesia's Statistics Bureau (BPS), said Indonesia's consumer price index fell due to a drop in food prices, such as chicken meat and chillies.

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Latest Columns Inflation

  • 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

    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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  • Despite Higher Idul Fitri Consumption, Indonesia May Not Reach GDP Target

    Although the holy fasting month of Ramadan and subsequent Idul Fitri celebrations always provide a boost for national economic growth in Indonesia as domestic consumption tends to peak, analysts believe that it will not contribute significantly to the government's 6.3 percent GDP growth target this year. During Ramadan and Idul Fitri (known as Lebaran), Indonesian consumers generally spend more on food products, clothes, shoes, tickets for transport and hotels than in other months, and thus lead to increased economic activity.

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  • Possible End to Quantitative Easing Will Impact on Emerging Economies

    Possible End to Quantitative Easing Will Impact on Emerging Economies

    Worldwide, most stock indices fell on Wednesday (07/08), particularly Japan's Nikkei index, after it has been speculated that the Federal Reserve may phase out the third round of its quantitative easing program in September 2013. This program, involving a monthly USD $85 billion bond-buying package, aims to spur US economic growth while keeping interest rates low. However, one important side effect has been rising stock markets around the globe. Now the end of QE3 is in sight, investors shy away from riskier assets.

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  • Indonesia's Inflation Rate Accelerates to 3.29% in July 2013

    Indonesia’s inflation rate in July 2013 was significantly higher than analysts had previously estimated. The country’s July inflation figure accelerated to 3.29 percent. On year-on-year basis, it now stands at 8.61 percent, the highest inflation rate since many years. Particularly food commodity and transportation prices rose steeply. The main reason for Indonesia's high inflation is the reduction in fuel subsidies. In late June, the government increased the prices of subsidized fuels in order to relieve the ballooning budget deficit.

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  • Despite High July Inflation and Trade Deficit, Indonesia's IHSG Slightly up

    As I stated before, mixed sentiments continue to influence the performance of Indonesia's main stock index (IHSG). During Thursday's trading day (01/08), the index moved sideways. News that the Federal Reserve intends to continue its bond-buying program made a good impact. However, this positive sentiment was offset by the release of Indonesia's high July inflation rate as well as the country's continued trade deficit. At the end of the day, the IHSG managed to post a gain as it received support from rising stock indices in Asia.

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  • Facing Higher Inflation: Indonesia's Stock Market under Pressure

    Last week (22-26 July 2013), Indonesia's main stock index (IHSG) ended 1.39 percent down at 4,658.87. The daily value of transactions on the regular market narrowed to an average of IDR 3 trillion (USD $300 million) from IDR 3.84 trillion in the previous week. Foreigners still recorded net sales amounting to IDR 92.9 billion (USD $9.3 million). Lack of positive sentiments, financial results of companies that were below expectation and the continued weakening of the rupiah against the US dollar resulted in the decline of the index.

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  • Investment Realization in Indonesia USD $19.8 billion in Semester I-2013

    Foreign and Domestic Investment Realization in Indonesia 2013

    Investment realization in Indonesia grew 30.2 percent to IDR 192.8 trillion (USD $19.8 billion) in the first six months of 2013 (compared to the same period last year). This result implies that 49.4 percent of the investment target for full 2013 has been achieved. The Indonesia Investment Coordinating Board (BKPM) aims to collect IDR 390.3 trillion in investments this year. This target is divided in domestic direct investment (DDI) of IDR 117.7 trillion and foreign direct investment (FDI) of IDR 272.6 trillion.

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