Below is a list with tagged columns and company profiles.

Today's Headlines Inflation

  • Currency of Indonesia: Rupiah to Appreciate in 2016

    Currency of Indonesia: Rupiah to Appreciate in 2016

    After six years of steady decline, the Indonesian rupiah is likely to have appreciated against the US dollar at the end of 2016. So far this year, the currency of Indonesia has appreciated 4.8 percent to IDR 13,126 against the greenback (Bloomberg Dollar Index) supported by capital inflows, particularly into government bonds and stocks as well as the delay in further monetary tightening in the USA. Although the rupiah should depreciate a bit as we go towards the end of the year, it is set to finish the year at a stronger level than it started.

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  • Indonesia Investments' Newsletter of 7 August 2016 Released

    Indonesia Investments' Newsletter of 7 August 2016 Released

    On 7 August 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 Q2-2016 GDP growth result, July inflation and manufacturing, the tax amnesty program, coal mining, monetary and fiscal policies, the tobacco industry, and much more.

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  • Economic Update Indonesia: July Inflation & Manufacturing Activity

    Economic Update Indonesia: July Inflation & Manufacturing Activity

    Statistics Indonesia (BPS) announced on Monday (01/08) that Indonesia's inflation rate reached 0.69 percent (m/m) in July 2016, considerably below analysts' forecasts. In fact, the 0.69 percent (m/m) pace is Indonesia's lowest July inflation rate since 2012. On a year-on-year basis, Indonesian inflation eased to a seasonally adjusted 3.21 percent (y/y), from 3.45 percent (y/y) in the preceding month. Meanwhile, Indonesia's manufacturing activity plunged unexpectedly in July.

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  • Indonesia's Purchasing Power Weaker? See Cash Outflow & Inflation

    Indonesia's Purchasing Power Weaker? See Cash Outflow & Inflation

    Whereas Indonesia's inflation pace usually accelerates markedly ahead of the Idul Fitri due to rising consumer spending,  the relatively moderate inflation in June (0.66 percent m/m) can be taken as a sign that Indonesia's purchasing power is still rather weak. Another sign that indicates weak purchasing power is that the amount of cash in circulation in Indonesia during the Ramadan and Idul Fitri celebrations fell short of the central bank's initial estimates. Consumption of unsubsidized fuels, however, has nearly doubled.

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  • Consumer Price Index Indonesia Update: 3.45% y/y Inflation in June

    Consumer Price Index Indonesia Update: 3.45% y/y Inflation in June

    Inflation in Indonesia accelerated slightly more than expected last month. According to the latest data from Statistics Indonesia (BPS), inflation reached 3.45 percent (y/y) in June 2016, up from 3.33 percent (y/y) in the preceding month. Initially, Indonesia's monthly inflation pace in June was forecast above 1 percent. However, over the past week estimates were cut to around 0.55 percent (m/m) as food prices were largely under control (even though prices of some staple foods - such as chicken meat and eggs - were still rising).

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  • Consumer Price Index Update Indonesia: June Inflation to Exceed 1% m/m

    Consumer Price Index Update Indonesia: June Inflation May Exceed 1% m/m

    A survey, conducted by Indonesia's central bank (Bank Indonesia, BI), indicates that Indonesian inflation has risen 0.59 percent in the first week of June 2016, implying that there is a big chance that inflation will reach beyond the 1 percent (m/m) level in the full-month, perhaps even touching 2 percent (m/m). The main cause of inflationary pressures in Indonesia in this month is food prices. Amid Ramadan festivities - which boost demand for food items - prices of beef, chicken meat, cooking oil, eggs, onions, and chilies have risen.

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  • Indonesia Investments' Newsletter of 5 June 2016 Released

    Indonesia Investments' Newsletter of 5 June 2016 Released

    On 5 June 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 fiscal credibility, inflation, manufacturing activity, the impact of a possible US interest rate hike, credit ratings, slavery, crude oil, and more.

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  • Indonesia Investments' Newsletter of 29 May 2016 Released

    Indonesia Investments' Newsletter of 29 May 2016 Released

    On 29 May 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 an update on the Indonesian economy, inflation, credit ratings, business sectors that have been opened up to foreign investment, IPOs, the palm oil industry, and more.

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  • Bank Indonesia Sees Easing Global Pressures & Controlled Inflation

    Bank Indonesia Sees Easing Global Pressures & Controlled Inflation

    The central bank of Indonesia (Bank Indonesia) sees easing pressures in the global economy in May 2016, reflected by the rising crude oil price. On Thursday (26/05), crude futures exceeded the USD $50 per barrel level for the first time since November 2015 (supported by production disruptions in Canada). Although oil futures declined again the following day on profit taking, the rising trend has persisted. In early 2016 crude oil traded below USD $30 a barrel, plunging some 21 months due to the global supply glut and weak global economic growth.

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  • Inflation in Indonesia: Rising Pressures Due to La Nina?

    Inflation in Indonesia: Rising Pressures Due to La Nina?

    Inflation is under control in Indonesia. Based on the latest data from Statistics Indonesia (BPS), Indonesian inflation eased to 3.60 percent (y/y) in April 2016, well within the target range of the nation's central bank and central government. However, inflationary pressures in Southeast Asia's largest economy may rise in the second half of the year because there is a big chance that the El Nino weather phenomenon is to be followed by the La Nina weather phenomenon. Both weather phenomenons impact heavily on Indonesia's agricultural output.

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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

    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

    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

    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

    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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