Below is a list with tagged columns and company profiles.

Today's Headlines Bank Indonesia

  • Lower Foodstuffs and Clothes Prices; Indonesia's October Inflation 0.09%

    Inflation in October 2013 was recorded at 0.09%. This low inflation rate was mainly supported by easing food and clothes prices. The foodstuffs component in the basket recorded deflation of 0.34 percent, while clothes posted deflation of 0.56 percent. These details were presented by Suryamin, Head of Statistics Indonesia (BPS) on Friday (01/11). The 0.09 percent October inflation rate is low compared to past results in the same month with the notable exception of October 2011 when 0.12 percent of deflation was recorded.

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  • Bank Indonesia: Indonesia's October Inflation Likely to Fall Below 0.26%

    Perry Warjiyo, Deputy Governor of Indonesia's Central Bank (Bank Indonesia), expects that the inflation rate in October 2013 will fall below 0.26 percent (which is the average October inflation rate since 2007). Warjiyo said that a survey of Bank Indonesia indicated that up to the third week of October, inflation had only reached 0.06 percent. Low inflation - or preferably deflation - is needed to curb Indonesia's current high inflation rate. In September 2013, annual inflation was recorded at 8.40 percent.

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  • Bank Indonesia: Indonesia's External Debt Growth Slowing in August 2013

    Indonesia’s foreign debt was recorded at USD $257.30 billion in August 2013, a 0.9 decrease compared to foreign debt in July 2013 (USD $259.61 billion). On an annual basis (yoy), foreign debt growth in August was 6.6 percent, thus slowing compared to July’s growth of 7.4 percent (yoy). The central bank of Indonesia (Bank Indonesia) considers that the slowing growth in the country's foreign debt is in line with the slowing growth of the domestic economy. Indonesia's GDP growth forecast has been revised down to below the six percent mark.

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  • Sovereign Credit Rating of Indonesia held at BBB-/stable outlook

    The Rating and Investment Information Inc (R&I), a rating agency from Japan, kept Indonesia’s Sovereign Credit Rating at BBB- with a stable outlook. In their press release, R&I stated that the four key factors behind the decision are: (a) Indonesia’s capacity to achieve sustainable economic growth in the long term (at around six percent per year); (b) conservative fiscal management (causing a marginal fiscal deficit); (c) a sound banking sector; and (d) a low level of government debt.

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  • Indonesia's Current Account Deficit May Moderate to 2.6% in 2014

    A senior official at Indonesia's central bank (Bank Indonesia) stated that the country's current account deficit is expected to ease to 2.5 - 2.7 percent of Indonesia's gross domestic product (GDP) by 2014. In the second quarter of 2013, the account deficit reached USD $9.8 billion or 4.4 percent of GDP in Q2-2013, an alarmingly high figure that has caused much concern among the investor community. This deficit is particularly brought on by a large deficit in the country's oil & gas sector in combination with strong domestic demand for imports.

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  • Profile of Bank Negara Indonesia (BNI): Indonesia's Fourth-Largest Bank

    Profile of Bank Negara Indonesia (BNI): Indonesia's Fourth-Largest Bank

    Bank Negara Indonesia is the fourth-largest bank of Indonesia in terms of assets, lending and third party funds. The bank provides financial services which are supported by its subsidiaries in shariah banking (Bank BNI Syariah), financing (BNI Multi Finance), the capital market (BNI Securities), and insurance (BNI Life Insurance). In 1996, BNI became the first state-owned bank to go public on the Indonesia Stock Exchange (IDX) when it sold 25 percent of its equity to the public.

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  • Indonesia's Foreign Exchange Reserves Grow 2.8% in September 2013

    The central bank of Indonesia (Bank Indonesia) announced that Indonesia's foreign exchange reserves have increased slightly in September 2013. On 30 September, the reserves stood at USD $95.67 billion, a 2.88 percent increase from USD $92.99 billion one month earlier. The reserves in September are equivalent to 5.4 months of imports, or 5.2 months when servicing of government external debt is included. Recent US dollar demand for the import of oil is what put pressure on the reserves.

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  • Bank Indonesia and China Extend Bilateral Currency Swap Arrangement

    Bank Indonesia and China Extend Bilateral Currency Swap Arrangement

    Governor of Bank Indonesia, Agus Martowardojo and Governor of the People’s Bank of China, Zhou Xiaochuan, signed an extension to the Bilateral Currency Swap Arrangement (BCSA), representing a tangible manifestation of strong financial cooperation between both central banks in the areas of monetary policy and financial system stability. “The agreement reflects regional commitment in the face of global uncertainty and will contribute propitiously towards maintaining macroeconomic and domestic financial stability,” emphasized Martowardojo.

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  • Growth of Indonesia's Foreign Debt Slows Down Conform Economic Trend

    Growth of Indonesia's foreign debt has slowed down in July 2013 according to data from Indonesia's central bank (Bank Indonesia). Total foreign debt in July 2013 stood at USD $259.54 billion, a 7.3 percent increase compared to the same month in 2012. In June 2013, the year on year growth had been 8 percent. Bank Indonesia stated that it considers Indonesia's current foreign debt situation - both in the private and public sector - as healthy. Growth has slowed down as a consequence of the slowing national economy.

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  • Bank Indonesia Raises its Benchmark Interest Rate (BI Rate) to 7.25%

    The central bank of Indonesia (Bank Indonesia) has raised its benchmark interest rate (BI rate) and deposit facility rate (Fasbi) by 25 basis points to 7.25 percent and 5.50 percent respectively on Thursday (12/09). It is the fourth time since June that Bank Indonesia raised the interest rate. Previously, it maintained a historic low BI rate of 5.75 percent for 16 months. The increase is one of the measures taken to control inflation, stabilize the rupiah exchange rate and to ensure that the current account deficit is managed to a sustainable level.

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Latest Columns Bank Indonesia

  • 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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  • 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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  • Indonesia's Benchmark Stock Index and Rupiah Continue Decline

    Indonesia's main stock index (IHSG) continued its weakening trend this week. The index fell 0.93 percent to 4,674.12 on Thursday (25/07). This downward movement today was in line with most other Asian stock indices. All sectoral indices of the IHSG weakened, except for the miscellaneous industry. Indonesian blue chips, in particular, were under pressure. Unilever Indonesia fell 3.38 percent and Bank Mandiri lost 3.37 percent. Trade was relatively quiet with value of transactions at IDR 4.5 trillion (USD $441.2 million).

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  • Indonesia's Stock Index Falls amid Mixed Markets and Rupiah Concerns

    IHSG - Indonesia Stock Exchange - 24 July 2013 - Indonesian Index - Indonesia Investments

    Indonesia's main stock index (IHSG) was not able to continue yesterday's rise as investors, particularly domestic investors, engaged in profit taking. Foreign investors, who were net buyers of Indonesian assets, were not able to guide the IHSG to positive territory. Mixed Asian stock indices, responding to weak Chinese data, did not support Indonesia's index. Moreover, market participants expect that the rupiah will continue its weakening trend and have begun speculating whether the benchmark interest rate (BI rate) will be raised again.

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  • Indonesia's Benchmark Index (IHSG) Rises 1.88% on Tuesday

    Yesterday's rising indices on Wall Street, high expectations of companies' financial reports and positive statements regarding economic growth in China resulted in a good day at the Indonesia Stock Exchange (IDX). Indonesia's main stock index, the IHSG, rose 1.88 percent to 4,767.16 on Tuesday (23/07), even though technical indicators seemed to predict a weakening of the index. Also the continued fall of the Indonesian rupiah did not turn investors away from the market. In fact, foreign investors were net buyers of Indonesian stocks.

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  • Weakening Rupiah due to Indonesia's Fundamentals and Profit Taking

    Weakening Indonesian Rupiah IDR Indonesia Investments

    The Indonesian rupiah (IDR) is experiencing one of its worst losing streaks in a decade. On Friday (19/07), the currency weakened to IDR 10,070 against the US dollar, which implies a devaluation of 4.14% in 2013 so far. The central bank of Indonesia, Bank Indonesia, does all it can to support the currency: the country's lender of last resort supplies dollars to the market triggering the reduction of foreign reserves from USD $105 million at end-May to $98 million at end-June, and raised its benchmark interest rate (BI Rate) by 50 bps to 6.50%.

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  • Asian Stock Indices Mixed but Indonesia's IHSG Continues to Rise

    IHSG - Indonesia Stock Exchange - 18 July 2013 - Indonesian Index - Indonesia Investments

    Indonesia's main stock index (IHSG) went up 0.89 percent to 4,720.44 on Thursday (18/07). The index was supported by developments in the United States. On Wednesday (17/07), Ben Bernanke spoke to the US Congress and said that the Federal Reserve is likely to continue its bond-buying program in 2013 and may gradually withdraw the quantitative easing program in 2014. But only if economic recovery of the US provides the good context. This message supported the IHSG although foreign investors continued to record a net sale.

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  • Bank Indonesia Tries to Curb Credit Growth in Indonesia's Property Sector

    Starting from 1 September 2013, the minimum down payment for the purchase of a second house or apartment (bigger than 70 m²) in Indonesia will be raised to 40 percent. Indonesia's central bank (Bank Indonesia) implements this new rule to avoid a possible credit bubble in Indonesia's property sector. The country's property sector has been booming in recent years, giving rise to many new property projects, soaring profits for property companies (as well as impressive stock performance) and significantly rising property prices.

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