Below is a list with tagged columns and company profiles.

Today's Headlines Inflation

  • Indonesia Investments' Newsletter of 1 May 2016 Released

    Indonesia Investments' Newsletter of 1 May 2016 Released

    On 1 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 political and economic matters such as the 12th economic policy package, problems related to the land reclamation project off the coast of Jakarta, an update on inflation, the palm oil industry, smartphone usage, the most profitable companies, and much more.

    Read more ›

  • Inflation Indonesia: Heightened Money Circulation due to Ramadan & Idul Fitri

    Inflation Indonesia: Heightened Money Circulation due to Ramadan & Idul Fitri

    The holy Islamic fasting month (Ramadan) is set to start in early June. One month later Indonesia will celebrate Idul Fitri (Lebaran), the celebration that marks the end of the Ramadan month. During Idul Fitri millions of Indonesians will travel back to their places of origin to spend some time with their families, a tradition called mudik. Although the Ramadan is a month characterized by self-control, this month and the subsequent Idul Fitri celebrations always cause rising consumption of food products as well as rising consumer spending on clothes, shoes, bags, and other articles.

    Read more ›

  • Bank Indonesia Keeps Key BI Rate at 6.75% in April Policy Meeting

    Bank Indonesia Keeps Key BI Rate at 6.75% in April Policy Meeting

    The central bank of Indonesia (Bank Indonesia) kept its key interest rate (BI rate) at 6.75 percent at the April policy meeting. This decision was in line with expectations. During the three policy meetings conducted in the January-March 2016 period Bank Indonesia had already cut its BI rate by a combined 75 basis points as inflation and the current account deficit are under control, while the Indonesian rupiah has been strengthening against the US dollar since the start of 2016. Last week, Bank Indonesia announced it will adopt the seven-day reverse repurchase rate (reverse repo) to replace the existing BI rate as the bank's key monetary tool.

    Read more ›

  • Indonesia's Gini Ratio Fell in 2015; Concerns about Social Cohesion Persist

    Indonesia's Gini Ratio Fell in 2015; Concerns about Social Cohesion Persist

    Indonesia's Gini ratio (or Gini coefficient), which measures the degree of inequality in income distribution, improved slightly in September 2015. According to the latest data published by Statistics Indonesia (BPS), the Gini ratio of Indonesia fell from 0.41 in March 2015 to 0.40 in September 2015, indicating that income distribution inequality slightly declined (a coefficient of zero expresses perfect equality, while a reading of 1 implies maximal inequality). The modest improvement occurred in the urban areas of Indonesia where the Gini ratio fell 0.1 point to 0.43. In the rural areas the ratio remained stagnant at 0.33.

    Read more ›

  • 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).

    Read more ›

  • 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

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

Latest Columns Inflation

  • Indonesia Has to Focus to Offset Impact of Quantitative Easing Tapering

    Indonesia Has to Focus to Offset Impact of Quantitative Easing Tapering

    On Thursday (19/09), most currencies and stock indices outside the USA were bullish after the Federal Reserve decided to continue its massive monthly USD $85 billion bond buying program. Today (20/09), Asian currencies and stock indices took the foot off the gas as many investors sought to cash in on yesterday's gains. The MSCI Asia Pacific was still able to rise slightly (0.1 percent) after jumping 2.2 percent yesterday, but Indonesia's benchmark stock index (IHSG) plunged 1.86 percent (after gaining 4.65 percent yesterday).

    Read more ›

  • The Impact of the Fed's Quantitative Easing Program on Emerging Indonesia

    Investors all around the world are in anticipation of the Federal Reserve's decision to scale back the monthly USD $85 billion bond-buying program known as quantitative easing (QE3). If indeed scaled back, then another important question remains: how much will the bond-buying program be toned down? Today (18/09), is the last day of the Fed's FOMC meeting in which these decisions are made. The market expects no drastic end to the program, instead a gradual toning down (between USD $10 to $20 billion) is anticipated.

    Read more ›

  • Poverty Rate of Indonesia Expected to Rise in 2013 due to Higher Inflation

    Poverty Rate of Indonesia Expected to Rise in 2013 due to Higher Inflation

    Indonesia's poverty rate is expected to jump to between 11.13 and 11.37 percent of the total Indonesian population in 2013 due to inflationary pressures. Inflation may reach 9.2 percent at the year end. The new poverty forecast is significantly higher than the government's original target of 9.5 to 10.5 percent as set in the country's State Budget. The revised forecast was presented by Indonesia's Ministry of National Development Planning (Bappenas). Poverty basket inflation is expected to rise accordingly.

    Read more ›

  • Last Week's Rising Benchmark Index of Indonesia: Trap or Opportunity?

    Last week, Indonesia's benchmark stock index (IHSG) climbed 7.3 percent to end at 4,375.53 on Friday (13/09). This growth is remarkable as it remains unknown what the Federal Reserve will do with its quantitative easing program (QE3). The next Fed meeting - scheduled for 17-18 September - is expected to provide more clarity regarding this matter. Positive sentiments that lifted the IHSG were Indonesia's slightly increased foreign exchange reserves, its stable rupiah after another BI rate hike, and the Bilateral Swap Deals (BSA) with Japan and China.

    Read more ›

  • Official Press Release of Bank Indonesia: BI Rate up 25 bps to 7.25%

    It was decided at the Board of Governors’ meeting (RDG) of Bank Indonesia on 12 September 2013 to raise the BI Rate by 25 bps to 7.25%, the rate on the Lending Facility by 25 bps to 7.25% and the rate on the Deposit Facility by 25 bps to 5.50%. This action forms part of the follow-up measures taken to reinforce the policy mix instituted by Bank Indonesia, which focuses on controlling inflation, stabilizing the rupiah exchange rate and ensuring the current account deficit is managed to a sustainable level.

    Read more ›

  • Top Ten Largest Companies in Indonesia by Market Capitalization

    Top Ten Largest Companies in Indonesia by Market Capitalization

    Indonesia's largest company by market capitalization is still HM Sampoerna, the country's largest tobacco company. The company has been the top company in Indonesia since March 2013 when it replaced Astra International, Indonesia's largest diversified conglomerate, on the top spot. Astra had been Indonesia's largest company since 2010. Currently, the third-largest company in terms of market capitalization is Unilever Indonesia. Unilever, which is Indonesia’s largest consumer goods producer, jumped four places in the ranking since late 2012.

    Read more ›

  • High Risks Remain Obstacle to Investment in Indonesia's Stock Market

    Last week, Indonesia's benchmark stock index (IHSG) remained under pressure and was corrected 122,735 points, or 2.9 percent. At the start of the week, a number of important data were released. Inflation in August 2013 was 1.12 percent (month-to-month), 7.94 percent (calender year 2013), and 8.79 percent (year on year). Major contributors to Indonesia's inflation rate were food products (0.45 percent), followed by housing, water, electricity and gas (0.16 percent), and transportation, communication and financial services (0.16 percent).

    Read more ›

  • Analysis: Indonesia's Car Sales Rising but May Fall in Second Half 2013

    Analysis: Indonesia's Car Sales Rising but May Fall in Second Half 2013

    In recent years, Indonesia's car sales have shown robust growth, culminating in a record high number of 1.12 million sold car units in 2012. This is an important statistic because car sales inform us about the state of the economy. Generally, rising car sales indicate an expanding economy while declining car sales indicate that the economy is slowing down. When we take a look at the table below, there is a link visible between Indonesia's GDP growth and rising car sales, except for 2011 to 2012 when GDP growth declined while car sales rose.

    Read more ›

  • Indonesia Stock Market: Overview and Analysis of Last Week's Performance

    Although many global indices were up, Indonesia's benchmark stock index (IHSG) fell a total of 2.93 percent during last week's trading. One important issue on global indices is the tapering off of the Federal Reserve's quantitative easing (QE3). On 17 and 18 September, the next meeting of the FOMC is scheduled, which is expected to discuss the future of QE3. Notably, as the meeting comes closer, most global indices in fact rise. Thus, market players seem to have become less concerned about an end to QE3.

    Read more ›

  • Indonesia Jumps to No. 38 in Global Competitiveness Index 2013-2014

    Indonesia Jumps to No. 38 in Global Competitiveness Index 2013-2014

    In recent weeks, Indonesia has to cope with a large amount of negative publicity as large capital outflows from the country's financial markets occurred, partly due to weak economic results regarding the current account balance, inflation and the the rupiah. Interest rates are rising, thus eroding people's purchasing power and consequently curbing economic growth. However, the Global Competitiveness Index 2013-2014, released by World Economic Forum, contained a positive outcome for Southeast Asia's largest economy.

    Read more ›

No business profiles with this tag