Below is a list with tagged columns and company profiles.

Today's Headlines Inflation

  • Indonesia's Higher Non-Taxable Income to Influence Consumption?

    Indonesia's Higher Non-Taxable Income to Influence Consumption?

    Indonesia's plan to  raise people's (annual) non-taxable income by 50 percent to IDR 54 million (approx. USD $4,090) is estimated to add 0.3 percentage point to consumption growth in Indonesia according to Indonesia's Finance Minister Bambang Brodjonegoro. Last week, Brodjonegoro announced this tax incentive with the aim to strengthen Indonesians' purchasing power and encourage household consumption. Household consumption, which accounts for about 56 percent of Indonesia's overall economic growth, has been curtailed in recent years amid slowing economic growth, high inflation and the weak rupiah rate (against the US dollar).

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  • Weak Tax Collection, Indonesia Wants to Cut Government Spending

    Weak Tax Collection, Indonesia Wants to Cut Government Spending

    Due to weaker-than-expected revenue in 2016, the government of Indonesia has to cut government spending by IDR 50.6 trillion (approx. USD $3.8 billion) this year. Indonesian Finance Minister Bambang Brodjonegoro informed that the government is currently in the middle of discussing revisions of the 2016 State Budget (APBN 2016). Weaker-than-expected government revenue is primarily the cause of weaker-than-targeted tax revenue. The government will also revise its inflation, average rupiah rate, and average oil price targets. Despite the expected cut

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  • Indonesia Investments' Newsletter of 3 April 2016 Released

    On 3 April 2016, 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 over the last seven days. Most of the topics involve economic matters such as Indonesia´s 11th economic policy package, the latest inflation and manufacturing figures, an update on palm oil export, tenders for geothermal power development, fruit export, the fuel price policy, and much more.

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  • Indonesia's Inflation Rate Rises Slightly in March 2016

    Indonesia's Inflation Rate Rises Slightly in March 2016

    In line with expectations, Statistics Indonesia (BPS) announced that Indonesia's annual inflation rate only rose modestly in March 2016. The nation's March inflation figure climbed to 4.45 percent year-on-year (y/y) in March from 4.42 percent (y/y) in the preceding month. On a monthly basis, Indonesian inflation accelerated 0.19 percent (m/m) in March. The country's core inflation, which excludes administered and volatile food prices, stood at 3.50 percent, slighly below the average 3.60 percent estimate of analysts.

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  • Premium Gasoline & Diesel Fuel Prices in Indonesia Cut per 1 April

    Premium Gasoline & Diesel Fuel Prices in Indonesia Cut per 1 April

    Per 1 April 2016 Indonesia's premium gasoline and diesel fuel prices decline by IDR 500 (approx. USD $0.04) per liter. Provided no shocks occur on the international crude oil market, these prices will remain at this level up to 31 September 2016. In January 2015 the Indonesian government scrapped generous subsidies for premium gasoline and capped the subsidy for diesel fuel at IDR 1,000 per liter. Ever since, Indonesian authorities evaluate prices of premium and diesel each quarter and determine prices based on crude oil price movements on the international market.

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  • Bank Indonesia's Rate Cut Boosts Optimism for Economic Growth

    Bank Indonesia's Rate Cut Boosts Optimism for Economic Growth

    In the first three monthly policy meetings this year (January-March) the central bank of Indonesia (Bank Indonesia) cut borrowing costs by a total of 75 basis points. Indonesia's benchmark interest rate (BI rate) was cut from 7.50 percent at the year-start to 6.75 percent at Thursday's Board of Governors' meeting. The overnight deposit facility rate and lending facility rate were also cut by 75 basis points, each, in the first three months. The lower interest rate environment in Indonesia signals that the financial fundamentals are strong. This is partly reason behind strong inflows of foreign capital into Southeast Asia's largest economy.

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  • Indonesia's Currency Extends Rally, Concern about Overvalued Rupiah

    The Indonesian rupiah is flirting with the IDR 13,000 per US dollar level on Monday (07/03) supported by improving risk appetite of investors. By 13:40 pm local Jakarta time, the currency of Indonesia had appreciated 0.64 percent to IDR 13,047 per US dollar (Bloomberg Dollar Index). The rupiah is now on a 13-day 'winning streak', its longest rally in six years, and is the second-best performing emerging market currency after Brazil's real so far this year. What is behind this good performance, and is it sustainable?

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  • Indonesia Investments' Newsletter of 6 March 2016 Released

    Indonesia Investments' Newsletter of 6 March 2016 Released

    On 6 March 2016, 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 over the last seven days. Most of the topics involve economic matters such as the performance of the rupiah, February inflation & manufacturing activity, financial sustainability of Indonesia's health insurance program, Sukri bonds, public accountability, natural resources, and more.

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  • Indonesia's Consumer Confidence Slightly Weaker in February 2016

    Indonesia's Consumer Confidence Slightly Weaker in February 2016

    Indonesia's consumer confidence regarding the country's macroeconomic conditions weakened in February 2016. Bank Indonesia's Consumer Confidence Index dropped 2.6 points to 110. The survey indicates that there are two reasons that explain this decline. Firstly, lower optimism about current economic conditions of Indonesia and, secondly, lower optimism regarding job availability over the next six months. Bank Indonesia's monthly survey is based on data provided by 4,600 households in 18 Indonesian cities across the archipelago.

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  • Deflation at 0.09% m/m, Indonesia's Annual Inflation Up 4.42% y/y

    Deflation Down 0.09% m/m, Indonesia's Annual Inflation Up 4.42% y/y

    In line with expectation, Indonesia's consumer price index fell in February 2016. Based on the latest data from Statistics Indonesia (BPS), released this morning, Southeast Asia's largest economy recorded deflation of 0.09 percent month-on-month (m/m) in the second month of the year on the back of lower food prices and lower electricity tariffs. However, on a year-on-year basis, Indonesia's inflation rate rose from 4.14 percent (y/y) in January to 4.42 percent (y/y) in February.

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Latest Columns Inflation

  • Bank Indonesia Press Release: Trade Balance and Inflation Update

    Bank Indonesia Press Release: Trade Balance and Inflation Update

    The central bank of Indonesia (Bank Indonesia) released a press statement on Wednesday evening (01/10) in which it set out its view on the country’s trade balance and inflation after the latest economic data had been released by Statistics Indonesia (abbreviated BPS) earlier on the day. Based on information of BPS, Indonesia’s September inflation was relatively low at 0.27 percent month-to-month (m/m), while the August trade balance swung back into a deficit at USD $318.1 million.

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  • Financial Update Indonesia: Interest Rates, Fuel Subsidies & Inflation

    Financial Update Indonesia: Interest Rates, Fuel Subsidies & Inflation

    The central bank of Indonesia (Bank Indonesia) will not lower its key interest rate (BI rate) until accelerated inflation (brought on by the looming subsidized fuel price hike at the end of the year) has eased and US interest rates are stable (the US Federal Reserve may raise its key interest rate in the second or third quarter of 2015). This implies that the relatively high interest rate environment in Indonesia (the key BI rate has been at 7.50 percent for almost a year) will continue (to safeguard financial stability) at the expense of higher economic growth.

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  • Bank Indonesia Keeps Key Interest Rate at 7.50% in September 2014

    Bank Indonesia Keeps Key Interest Rate at 7.50% in September 2014

    The central bank of Indonesia (Bank Indonesia) kept its key interest rate (BI rate) at 7.50 percent for the tenth consecutive month as inflation is under control and well within the year-end target of the central bank (3.5-5.5 percent). The lending facility and deposit facility were kept at 7.50 percent and 5.75 percent, respectively, at Thursday’s Board of Governor’s Meeting (11/09). The central bank also expects that the current interest rate environment is capable of curbing the country’s wide current account deficit.

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  • Indonesian Government Eyes Economic growth of 5.8% in 2015

    The government of Indonesia agreed with the House Budget Committee to adjust the economic growth target of Southeast Asia’s largest economy in 2015 to 5.8 percent, 0.2 percentage point up from the initial growth target proposed by the government in the Financial Memorandum as well as the 2015 State Budget Draft (APBN). Still, the 5.8 percent gross domestic product (GDP) growth target constitutes the lowest growth target set in Indonesia’s state budget (excluding revised state budgets) since the year 2010.

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  • Record High Level Indonesian Stocks on Sukuk Sale and Subsidy Reform

    The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) ended at a record high on Wednesday (03/09) as market sentiments were positive after the Indonesian government raised USD $1.5 billion from 10-year dollar-denominated Islamic bonds (known as sukuk) on Tuesday (02/09). Foreign investors submitted USD $10 billion worth of bids, six times the amount offered, showing that they are confident about the country’s current and future economic prospects.

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  • Economic Challenges Indonesia: Jokowi to Raise Fuel Prices Soon?

    Speculation has emerged that Indonesian President-elect Joko Widodo (Jokowi) plans to raise prices of subsidized fuels immediately after taking office in late October 2014. On Tuesday (02 /09), Jokowi said that he sees no other option than to raise these prices in an effort to relieve the budget deficit, curb the wide current account deficit and make more funds available for long-term productive public investments (such as on infrastructure, healthcare and education). The government has set aside IDR 291.1 trillion (USD $25 billion) for fuel subsidies in 2015.

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  • Indonesian Rupiah Exchange Update: Depreciating on Strong US Dollar

    Contrary to the positive performance of the benchmark stock index of Indonesia on Monday’s trading day (01/09) and despite positive domestic economic data released by Statistics Indonesia, the Indonesian rupiah exchange rate depreciated 0.22 percent to IDR 11,716 per US dollar based on the Bloomberg Dollar Index on Monday (01/09). The main reason for the currency’s depreciation is the strengthening US dollar as US economic data are improving and inflation is slowing in the Eurozone.

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  • SBY Declines but Joko Widodo Set to Curb Indonesia’s Fuel Subsidies

    SBY Declines but Joko Widodo Determined to Curb Indonesia’s Fuel Subsidies

    In the past days, Indonesia’s fuel subsidy policy has been in the spotlight of Indonesian media continuously. When it was reported that incumbent President Susilo Bambang Yudhoyono (SBY) and newly elected president Joko Widodo would meet on the island of Bali this week to discuss various transitional matters, speculation emerged that the country’s generous fuel subsidies, which seriously burden the government’s budget as well as current account, might be wound down before the new government is inaugurated in October 2014.

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  • Current Account Deficit Indonesia at 4.27% of GDP; BI Rate Kept at 7.50%

    Current Account Deficit Indonesia at 4.27% of GDP; BI Rate Kept at 7.50%

    The central bank of Indonesia (Bank Indonesia) announced two important matters on Thursday (14/08). Firstly, the institution decided to maintain the benchmark interest rate (BI rate) at 7.50 percent, the overnight deposit facility rate (Fasbi) at 5.75 percent, and the lending facility rate at 7.50 percent. Secondly, it announced that Indonesia’s current account deficit widened to USD $9.1 billion, or, 4.27 percent of the country's gross domestic product (GDP) in the second quarter of 2014, a widening that is larger than initially forecast.

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  • Economic Growth of Indonesia in Second Half 2014: Slowing or Growing?

    Indonesia’s gross domestic product (GDP) growth in the first half of 2014 reached 5.17 percent (year-on-year), thus continuing the slowing growth trend that has been recorded by the country since 2011. Forecasts for GDP growth in the second half of 2014 indicate a slight improvement (to the range of 5.2 to 5.3 percent year-on-year) supported by strong household consumption, increased government spending and further growth of the trade and services sector. However, in recent quarters the official GDP figure has been lower than most forecasts.

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