Below is a list with tagged columns and company profiles.

Today's Headlines Bank Indonesia

  • Foreign Exchange Reserves of Indonesia Slightly Lower in March 2014

    Indonesia’s official foreign exchange reserve assets stood at USD $102.6 billion as of the end of March 2014, a slight decline from the level of USD $102.7 billion in the previous month. The decline was mainly due to government payments in the context of its maturing global bond in March 2014. At this level, reserve assets can adequately cover 5.9 months of imports or 5.7 months of imports as  well as servicing of government external debt repayment, well above the international standards of reserves adequacy at three months of imports.

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  • Bank Indonesia: Consumer Confidence in Indonesia Remains Strong

    Indonesian consumer confidence continued to grow in March 2014. According to the latest survey of Indonesia's central bank (Bank Indonesia), the country's consumer confidence rose to 118.2 in March from 116.2 one month earlier. Indonesians are particularly optimistic about domestic economic conditions over the next six months, evidenced by a 3.2 point rise in the Consumer Expectations Index to 123.9 points. Increasing consumer confidence is positive for household consumption, an important pillar of Indonesia's economic growth.

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  • DBS Bank: Indonesia's Household Consumption Accelerates on Election

    Singapore-based DBS Bank predicts that household consumption in Indonesia will grow 5.6 percent (yoy) in the first semester of 2014, which is slightly higher than the growth recorded in the last three years. Gundy Cahyadi, economist at the DBS Bank, said that the main reason for this accelerated household consumption is the legislative election that will be held on 9 April 2014. Traditionally, consumption peaks in times of elections. Household consumption is one of the main pillars of Indonesia's economic growth, accounting for 55 percent of GDP.

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  • Bank Indonesia Optimistic on Posting Trade Surplus in February 2014

    Agus Martowardojo, Governor of the central bank of Indonesia (Bank Indonesia) expects a trade surplus of around USD $700 million in February 2014. If Martowardojo's forecast is realized, it would be a sharp contrast to the USD $430.6 million trade deficit that was recorded one month earlier. In January, the trade deficit was mainly due to declining exports of coal and vegetable oil (which together account for 26.7 percent of total non-oil & gas exports), among others, due to ongoing annual contractual negotiations at the year-start.

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  • Government of Indonesia Optimistic that GDP Growth Target Can Be Met

    Contrary to the World Bank and Bank Indonesia that both revised down forecasts for economic growth of Indonesia in 2014, the government of Indonesia is still convinced that it can meet the target of 5.8 to 6.0 percent as has been set in the 2014 State Budget (APBN 2014). In its most recent Indonesia Economic Quarterly report, the World Bank said it expects Indonesia’s economic growth to reach 5.3 percent in 2014, while Bank Indonesia targets a 5.7 percentage growth rate.

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  • Bank Indonesia Lowers Forecast for Economic Growth in 2014 to about 5.7%

    The central bank of Indonesia (Bank Indonesia) lowered its forecast for growth of Southeast Asia's largest economy in 2014 from the range of 5.8 - 6.2 percent to 5.5 - 5.9 percent as expansion of domestic consumption and exports are less robust than previously estimated. As such, Bank Indonesia implied that economic expansion of Indonesia will slow down further. Starting from 2011, gross domestic product (GDP) growth of Indonesia has declined steadily from 6.5 percent to 5.8 percent in 2013.

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  • Bank Indonesia Keeps Benchmark Interest Rate (BI Rate) at 7.50% in March

    It was decided at the Board of Governors' Meeting (on 13 March 2014) to hold the benchmark interest rate (BI rate) at 7.50 percent, the lending facility rate at 7.50 percent and the deposit facility rate at 5.75 percent. The policy is consistent with ongoing efforts to guide inflation back towards its target corridor of 4.5±1 percent in 2014 and 4.0±1 percent in 2015, as well as to reduce the current account deficit to a more sustainable level. Recent developments indicate that the rate of inflation is under control and the current account deficit is shrinking.

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  • January's Slowing Credit Growth in Line with Bank Indonesia's Directive

    Credit growth in Indonesia's banking sector slowed in January 2014 to a growth pace of 20.9 percent (year-on-year), down from 21.4 percent (yoy) in the previous month. Total disbursed credit in January 2014 stood at IDR 3,287 trillion (USD 285 billion). The slowing pace of credit disbursement in Southeast Asia's largest economy is in accordance with the central bank's target to reduce credit growth in the banking sector to between 15 and 17 percent (yoy), said Agus Martowardojo, Governor of Bank Indonesia.

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  • Mixed Predictions about Interest Rate Policy Decision of Bank Indonesia

    Tomorrow (13/03), Bank Indonesia will hold its next Board of Governor's Meeting to discuss general policies in the monetary field. As usual, market participants are highly interested in the central bank's assessment of the country's economic fundamentals and interest rates policy. However, predictions about Bank Indonesia's stance toward its benchmark interest rate (BI rate) are mixed. Some expect it to be kept at 7.50 percent as inflation has been under control. Others anticipate a 0.25 percent hike due to the country's weak exports.

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  • Retail Sales Remain Strong on Robust Private Consumption in Indonesia

    The latest survey of Indonesia's central bank (Bank Indonesia) indicates that domestic private consumption and household consumption in Indonesia remain strong, evidenced by a 28.4 percentage growth (year-on-year) of retail sales in January 2014. This growth was particularly supported by strong sales of information and communication equipment. These sales rose 75 percent (yoy). Traditionally, Indonesia's private consumption accounts for about 55 percent of the country's total annual economic expansion.

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Latest Columns Bank Indonesia

  • Economic Update Indonesia: Interest Rate, Inflation, GDP and Trade Balance

    Bank Indonesia’s Board of Governors decided to hold the BI Rate at a level of 7.25 percent, with rates on the Lending Facility and Deposit Facility held respectively at 7.25 percent and 5.50 percent. Bank Indonesia will continue to monitor global and domestic developments and further synergise the monetary and macroprudential policy mix in order to ensure that inflationary pressures remain under control, that rupiah exchange rate stability is maintained according to its fundamentals and the current account deficit is reduced to a sustainable level.

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  • Indonesia's Inflation Eases to 8.40% as September Shows Deflation of 0.35%

    After three months of high monthly inflation rates, Indonesia's inflation eased in September due to falling prices of food, transportation, communications and financial services after the Muslim celebrations of Idul Fitri, which always cause a spike in inflation, have passed. In September 2013, Indonesia posted deflation of 0.35 percent. It was the first time in 12 years that the country posted deflation in this month. The annual inflation rate eased to 8.40 percent from 8.79 percent in August 2013.

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  • Bank Indonesia Press Release: August Trade Surplus, September Deflation

    Inflationary pressures eased in September 2013 to a 0.35% rate of deflation (mtm), or 8.40% (yoy). The rate of deflation exceeded the projections contained within the Price Monitoring Survey conducted by Bank Indonesia and much lower than inflation expectations by some analysts. Abundant supply in the wake of horticultural harvests (shallots and chilli peppers), triggered a deep correction in food prices. In addition, sliding beef prices also exacerbated further deflationary pressures, with volatile foods recording deflation of 3.38% (mtm).

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  • Market Waiting for September Inflation Rate and August Trade Figures

    Investors are eagerly waiting for the release of Indonesia's September inflation rate. Indonesia has been hit by high inflation since the government decided to increase prices of subsidized fuels at the end of June. High inflation limits its people's purchasing power and as domestic consumption accounts for about 55 percent of Indonesia's economic growth, it thus impacts negatively on GDP growth, particularly after Bank Indonesia raised its benchmark interest rate (BI rate) from 5.75 to 7.25 percent between June and September.

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  • Bank Indonesia Amends LTV/FTV Ratio to Safeguard Financial Stability

    Bank Indonesia amended its regulation concerning the Loan To Value (LTV) and Financing To Value (FTV) ratio for property credit and property-backed consumer loans. The LTV/FTV ratio is the ratio between the value of credit/financing that can be allocated by a bank and the corresponding value of collateral in the form of property when the loan is allocated. Property is real property that includes houses, vertical housing (apartments, flats, condominiums and penthouses), home offices and home stores.

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  • Deflation or Inflation in September? Bank Indonesia vs Statistics Indonesia

    Indonesia's central bank, Bank Indonesia, expects deflation of about 0.9 percent in September 2013. Statistics Indonesia, on the other hand, believes there will be limited inflation this month. Both institutions agree, however, on a forecast of at least 9 percent of inflation over full-year 2013. The bank's September forecast is based on a survey that was conducted in the second week of September. This survey showed that food commodities and government administered prices eased.

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  • Bank Indonesia Plans New Rule to Avert Possible Property Bubble

    In order to avert a potential bubble in Indonesia's property sector, Bank Indonesia (the central bank of Indonesia) is planning to further tighten its monetary policy in the sector. After having raised the minimum down payment requirement on housing loans to 30 percent for first home ownership (thus a loan-to-value ratio of 70 percent) in June 2012, Bank Indonesia now intends to prohibit credits for the purchase of a second, third (or more) house that has not been built yet (still in the preconstruction phase). This new rule is expected to be introduced this month.

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  • Investors Waiting for Federal Reserve Decision; Indonesia's IHSG Down 1.20%

    Market participants are waiting for the outcome of the Federal Reserve's FOMC meeting, which will deal with the future of the quantitative easing program. The wait and see attitude of investors made the benchmark index of Indonesia (IHSG) fall 1.20 percent to 4,463.25 points. Few big cap stocks were able to rise and although some second liners were up, it was not enough to push the IHSG into the green zone. The rupiah continued to weaken and foreign investors were again mostly selling their Indonesian assets.

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  • Indonesia's Benchmark Stock Index Up 3.35% amid Rising Asian Indices

    Rising indices on Wall Street at the end of last week were a major factor behind rising stock indices in Asia, including Indonesia's benchmark stock index (IHSG), on Monday (16/09). For market players this development was a sign to enter the market. Moreover, expectation has emerged that the Federal Reserve will not take any drastic decisions in the FOMC meeting (on 17-18 September) regarding its quantitative easing program. This expectation has calmed down markets. Indonesia's IHSG rose 3.35 percent to 4,522.54 points.

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  • Indonesia's Benchmark Stock Index (IHSG) up 0.17% on Thursday

    Despite concerns that Indonesia's benchmark stock index (IHSG) would weaken on Thursday's trading day (12/09), the index ended 0.17 percent up to 4,356.61 points. Indices on Wall Street and in Asia impacted positively on the IHSG and kept foreign investors increasing their stock portfolios in Indonesia. Moreover, the Bank Indonesia's decision to raise the country's benchmark interest rate (BI rate) by 25 basis points to 7.25 percent was generally well-received by investors. Banking stocks helped to support the IHSG.

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