Below is a list with tagged columns and company profiles.

Today's Headlines Bank Indonesia

  • Central Bank of Indonesia Maintains Benchmark Interest Rate at 7.50%

    Central Bank of Indonesia Maintains Benchmark Interest Rate at 7.50%

    The central bank of Indonesia (Bank Indonesia/BI) left its benchmark interest rate (BI rate) unchanged at 7.50 percent in the Board of Governor's Meeting on Thursday (13/02/14). This decision was in line with market expectations as several economic indicators have improved. In recent days, the rupiah exchange rate has shown a marked improvement to IDR 12,055 per US dollar (Bloomberg Dollar Index) as pressures on Indonesia's current account balance are easing and Bank Indonesia's foreign exchange reserves are rising.

    Read more ›

  • Central Bank Survey Indicates Rising Consumer Confidence in Indonesia

    Central Bank Survey Indicates Rising Consumer Confidence in Indonesia

    Indonesians' consumer confidence has increased in January 2014 according to the latest survey conducted by Indonesia's central bank (Bank Indonesia). The outcome of the survey indicated a rise of Indonesia's Consumer Confidence Index (CCI) from 116.5 in December 2013 to 116.7 in January 2014¹. This index illustrates consumer perceptions of current economic conditions compared to conditions in the previous six months as well as the expectations of Indonesian consumers for economic conditions in the next six months.

    Read more ›

  • Indonesia’s Foreign Exchange Reserves Grow to USD $100.7B in January 2014

    Amid an improving trade balance, Indonesia’s foreign exchange reserves rose to USD $100.7 billion at the end of January 2014, according to a press release of Indonesia's central bank (Bank Indonesia). Compared to December 2013, the reserves increased USD $1.3 billion. These reserves are sufficient to finance 5.7 months of imports or 5.6 months of imports and servicing of government external debt, which is well above the international standard of reserve adequacy at 3 months of imports.

    Read more ›

  • Use of Bitcoin as Payment Instrument Banned by Indonesia's Central Bank

    The use of bitcoin, the hotly debated digital currency that was launched in 2009, is banned by the central bank of Indonesia (Bank Indonesia). This week, Bank Indonesia released a press release in which it states that the bitcoin and other virtual currencies are not considered as currencies nor legal payment instruments in Indonesia. After China, Denmark and Russia, Indonesia has become the next country to ban the use of the bitcoin as it can jeopardize the country's financial stability according to the assessment of the bank.

    Read more ›

  • Bank Indonesia: Growth in Q4-2013 Improved and Became More Balanced

    The central bank of Indonesia (Bank Indonesia) stated that economic growth during the fourth quarter of 2013 was recorded at 5.72 percent (yoy), thus having increased compared to the previous quarter (5.63 percent, yoy), and which is also higher than Bank Indonesia's estimate (5.7 percent). With this development, the overall economic expansion in 2013 reached 5.78 percent. Bank Indonesia considers that the fundamental condition of Indonesia’s economy is still relatively robust.

    Read more ›

  • Manufacturing in Indonesia Expands Slightly in January on New Orders

    Manufacturing Growth in Indonesia Expands Slightly in January on New Orders

    Although China's HSBC Purchasing Managers’ Index (PMI) in January 2014 fell below the 50.0 mark thus indicating contracting manufacturing, other Asian countries, including Indonesia, posted expanding manufacturing. Indonesia's HSBC Manufacturing PMI read 51.0 in the first month of the year, its highest reading since June 2013 and up from 50.9 in December 2013. However, this limited expansion also raised concerns that the policy tightening of Indonesia's central bank (Bank Indonesia) has not been as effective as hoped for.

    Read more ›

  • OJK: Credit Growth in Indonesia's Banking Sector at a Safe Level

    Credit growth in Indonesia's banking sector in 2014 is estimated to range between 17 and 18 percent. This estimation is higher than the central bank's target of 15 to 17 percent but lower than credit growth in 2013. According to Indonesia's Financial Services Authority (Otoritas Jasa Keuangan, OJK), this pace of growth is at a safe level. Third party funds are projected to grow 16 to 16.5 percent, while the OJK did not provide an estimation of the loan to deposit ratio (LDR) yet although it did say that the LDR was at a safe level too.

    Read more ›

  • Update on Floods in Jakarta: Water Subsiding but Risks Remain

    On Sunday (26/01), Indonesia's National Disaster Mitigation Agency (BNPB) reported that the floods in Jakarta have led to 23 casualties (due to drowning, electrocution or the impossibility for sick people to reach the hospital) in the last two weeks in Indonesia's capital city, while almost 28,000 people are still displaced from their homes. The good news, however, is that in many parts of Jakarta floodwaters have begun to subside since the end of last week although several neighborhoods remain flooded up to this day.

    Read more ›

  • Floods, LPG and Electricity Tariffs Impact on Indonesia's January Inflation

    Floods, LPG and Electricity Tariffs Impact on Indonesia's January Inflation

    Contrary to reports last week, the central bank of Indonesia (Bank Indonesia) expects that the country's January inflation rate may exceed 1 percent due to the disturbance of food products distribution amid severe floods in several cities in Indonesia, particularly Jakarta and Manado. Higher food prices are expected to add 0.3 percent to the monthly inflation rate. Apart from the flood issue, higher LPG as well as electricity tariffs (in the industry sector) will also contribute to January 2014 inflation.

    Read more ›

  • Indonesian Government Auctions Rupiah-Denominated Bonds on Tuesday

    Today (21/01), the government of Indonesia auctions rupiah-denominated state bonds of IDR 10 billion (USD $833 million) in order to reap funds to finance targets set in the government's 2014 state budget (APBN 2014). The bonds, involving the new issuance of SPN12150108 and re-openings of series FR0069, FR0070, and FR0071, have a nominal value of IDR 1 million each. Series SPN12150108 is issued at a discount yield. The central bank of Indonesia (Bank Indonesia) organizes the auction using a multiple price method.

    Read more ›

Latest Columns Bank Indonesia

  • Bank Indonesia May Not Cut Interest Rates Further for a Long Time

    Bank Indonesia May Not Cut Interest Rates Further for a Long Time

    Bank Indonesia, the central bank of Indonesia, decided to maintain its benchmark interest rate, the BI 7-day (Reverse) Repo Rate (BI-7 day RR Rate), at 4.75 percent at the February 2017 policy meeting as Indonesia's inflation rate is expected to rise amid growing domestic demand and administered price adjustments, while the central bank also tries to mitigate the impact of looming normalization of US interest rates (expected later this year). Meanwhile, Bank Indonesia kept its deposit facility and lending facility rates at 4.00 percent and 5.50 percent, respectively.

    Read more ›

  • Bank Indonesia: Balance of Payments Surplus at $4.5 billion in Q4-2016

    Bank Indonesia: Balance of Payments Surplus at $4.5 billion in Q4-2016

    Bank Indonesia, the central bank of Indonesia, announced on Friday (10/02) that Indonesia's balance of payments surplus reached USD $4.5 billion in the fourth quarter of 2016 as the capital and financial accounts' surplus managed to (more than) compensate for the USD $1.8 billion current account deficit (or 0.8 percent of the country's gross domestic product/GDP) in the same quarter. Regarding full-year 2016, Indonesia posted a USD $12.1 billion surplus in its balance of payments, while its current account deficit was equivalent to 1.8 percent of GDP.

    Read more ›

  • Foreign Loan Restrictions and Reporting Obligations in Indonesia

    Foreign Loan Restrictions and Reporting Obligations in Indonesia

    A company that wishes to obtain a foreign loan in foreign currency of more than USD 100,000 is required to fulfill certain requirements set by Bank Indonesia (BI). These requirements are set in BI Regulation 16/21/PBI/2014 concerning The Implementation Of Prudential Principles in Managing External Debt of Non-Bank Corporation and amendment 18/4/PBI/2016 (BI Regulation). Further explanation is provided in the BI Circular number 16/24/DKEM of 2014 and its amendment number 17/18/DKEM of 2015. In this column we will discuss the reporting requirements for foreign loans of more than USD 100,000.

    Read more ›

  • Bank Indonesia Kept Interest Rates Unchanged on Capital Outflow Risk

    Bank Indonesia Kept Interest Rates Unchanged on Capital Outflow Risk

    The central bank of Indonesia (Bank Indonesia) decided to leave its interest rate environment unchanged at the January 2017 policy meeting on Thursday (19/01). The benchmark seven-day reverse repurchase rate (BI 7-day RR Rate) was kept at 4.75 percent, while the Deposit Facility and Lending Facility rates were maintained at 4.00 percent and 5.50 percent, respectively. The decisions of Bank Indonesia are in line with analysts' forecasts. Due to risks of capital outflows Indonesia's central bank had few room to ease monetary policy.

    Read more ›

  • Impact of Fed's Interest Rate Hike on the Value of Indonesia's Rupiah

    Impact of Fed's Interest Rate Hike on the Value of Indonesia's Rupiah

    Stock markets in Asia are mixed, yet tepid on Friday (16/12) after the US Federal Reserve raised its interest rate regime for the second time in a decade on Wednesday (14/12). Although the Fed's move was widely anticipated (and therefore already "priced in" to a high degree) it still resulted in some capital outflows from Asia's stock markets on Thursday (13/12). Japan, as usual, is the notable exception as US dollar strength (or yen weakness) makes Japan's export-oriented stocks more attractive.

    Read more ›

  • Bank Indonesia Keeps Interest Rate Unchanged at December Meeting

    Bank Indonesia Keeps Interest Rate Unchanged at December Meeting

    Bank Indonesia, the central bank of Indonesia, kept its benchmark interest rate unchanged at the December 2016 policy meeting, nearly a day after the US Federal Reserve decided to raise its key Fed Funds Rate by 25 basis points to the range 0.50 - 0.75 percent. Moves of both central banks were expected. Monetary tightening in the USA triggers capital outflows from emerging markets (the Indonesian rupiah depreciated around 0.70 percent against the US dollar on Thursday). Therefore, Bank Indonesia had little room to seek monetary easing.

    Read more ›

  • Bank of Indonesia: Assessing Impact of Sudden Rate Cut

    Bank of Indonesia: Assessing Impact of Sudden Rate Cut

    The Bank of Indonesia recently resorted to a sudden cut in interest rate (by 25 bps to 4.75 percent) at its 20th October 2016 meeting. This followed a 25 bps reduction in September and thus this is the sixth time this year that the Indonesian central bank has elected to loosen monetary policy.

    Read more ›

  • Bank Indonesia Kept 7-Day Reverse Repo Rate at 4.75% in November

    Bank Indonesia Keeps 7-Day Reverse Repo Rate at 4.75% in November

    In line with expectations Indonesia's central bank (Bank Indonesia) kept its benchmark reference rate - the BI 7-Day (Reverse) Repo Rate - at 4.75 percent at Thursday's policy meeting (17/11). This decision was made amid the high degree of uncertainty in global financial markets (triggered by the 2016 US presidential election) and stable domestic conditions (low inflation and an improving current account deficit). The high degree of volatility does cause major pressures on the rupiah and therefore Bank Indonesia will continue to stabilize exchange rates through intervention in markets.

    Read more ›

  • Bank Indonesia Ending the Era of High Interest Rates?

    Bank Indonesia Ending the Era of High Interest Rates?

    Bank Indonesia (BI) is the central bank of the Republic of Indonesia, and was known as "De Javasche bank" or "The Java Bank" in the colonial period.  Bank Indonesia was founded on 1 July 1953 from the nationalization of De Javasche Bank. As an independent state institution, Bank Indonesia is fully autonomous in formulating and implementing each of its assumed tasks and most policy goals tend to center around the ability to stabilize prices in the economy.

    Read more ›

  • Bank Indonesia Cut Interest Rates Again in October 2016

    Bank Indonesia Cut Interest Rates Again in October 2016

    Bank Indonesia surprised markets. On Thursday (20/10) the central bank of Southeast Asia's largest economy cut its benchmark interest rate - the BI 7-day reverse repo rate - by 25 basis points to 4.75 percent. Meanwhile, both the deposit facility and lending facility were also cut by 25 basis points to 4.00 percent and 5.50 percent, respectively. Perhaps it was Bank Indonesia's present to Indonesian President Joko Widodo for the two-year anniversary of his government. A lower interest rate climate should encourage macroeconomic expansion.

    Read more ›

Associated businesses Bank Indonesia