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Today's Headlines Bank Indonesia

  • Consumer Confidence in Indonesia Turns Positive in November

    Consumer Confidence in Indonesia Turns Positive in November

    The latest consumer survey of Indonesia's central bank (Bank Indonesia) indicates that consumer confidence in Indonesia has improved - turning pessimism into optimism - in November on expectations of better economic conditions. Bank Indonesia's consumer confidence index, which is based on 1,700 household respondents in six major cities in Indonesia, rose to 103.7 points in November from 99.3 points in the preceding month. A reading below 100.0 signals that consumers are pessimistic.

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  • Inflation Update Indonesia: Falling Below Central Bank's 2015 Target

    Inflation Update Indonesia: Falling Below Central Bank's 2015 Target

    The central bank of Indonesia (Bank Indonesia) expects headline inflation to reach 2.79 percent (y/y) in full-year 2015, below the central bank's target range of between 3 and 5 percent. Inflation has been low in Indonesia this year, accumulating to 2.16 percent in the first ten months of 2015, and Bank Indonesia estimates that the pace of inflation will remain controlled in the last two months of 2015.

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  • Indonesia's Foreign Debt Growth Slowed on Global Uncertainty

    Indonesia's Foreign Debt Growth Slowed on Global Uncertainty

    Total outstanding foreign debt of Indonesia fell to USD $302.4 billion at the end of the third quarter of 2015, down USD $2.1 billion from the end of the preceding quarter. The central bank of Indonesia (Bank Indonesia) said both public and private external debt declined in Q3-2015 as both sectors were reluctant to take up new (overseas) debt amid global uncertainties, Indonesia's sluggish economic growth, and the fragile rupiah (ahead of looming capital outflows brought about by higher US interest rates).

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  • Stock Market & Rupiah Update Indonesia: Back in the Red

    Stock Market & Rupiah Update Indonesia: Back in the Red

    Stock indices in Asia were mixed on Wednesday (18/11), while most emerging market currencies depreciated against the US dollar. The Indonesian rupiah was under pressure - touching a six week low - after the central bank (Bank Indonesia) cut the primary minimum statutory reserves from 8.00 percent to 7.50 percent (effective per 1 December 2015), hence providing local financial institutions approximately USD $1.8 billion more in liquidity. However, it may not be enough to trigger an increase in lending as banks are more focused on lending quality than quantity.

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  • Bank Indonesia Expects GDP Growth at Lower End of Target Range in 2015

    Bank Indonesia Expects GDP Growth at Lower End of Target Range in 2015

    The central bank of Indonesia (Bank Indonesia) expects the country's economic growth to come in the lower end of its 4.7-5.1 percent (y/y) gross domestic product (GDP) growth target range for full-year 2015. Bank Indonesia Governor Agus Martowardojo expects to see accelerated economic growth in the last quarter of the year (from the preceding quarter) due to increased government spending and investment. In the second quarter of 2015, Indonesia's economy expanded at the slowest pace in six years (+4.67 percent y/y), then accelerating to 4.73 percent (y/y) in the following quarter.

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  • Bank Indonesia Keeps Key Interest Rate at 7.50% in November Policy Meeting

    Bank Indonesia Keeps Key Interest Rate at 7.50% in November Policy Meeting

    Bank Indonesia Governor Agus Martowardojo announced during a press conference that the central bank kept its benchmark interest rate (BI rate) at 7.50 percent during the Board of Governor's Meeting on 17 November 2015. Meanwhile, Bank Indonesia maintained the deposit facility rate and the lending facility rate at 5.50 percent and 8.00 percent, respectively. The current interest rate environment is considered sufficient to face persistent global uncertainties caused by the looming Fed Fund Rate hike and sluggish economic growth in the Eurozone and China.

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  • Bank Indonesia: Current Account Deficit Improved to 1.86% of GDP in Q3-2015

    Bank Indonesia: Current Account Deficit Improved to 1.86% of GDP in Q3-2015

    The current account balance of Indonesia improved due to the stronger non-oil & gas trade balance. Indonesia's current account deficit eased to USD $4.0 billion, or 1.86 percent of the country's gross domestic product (GDP), in the third quarter of 2015. This performance was much better than the USD $7.0 billion deficit (3.02 percent of GDP) recorded in Q3-2014 or USD $4.2 billion (1.95 percent of GDP) in Q2-2015. Meanwhile, the balance of payments showed a deficit of USD $4.6 billion, up from the deficit of USD $2.93 billion in the preceding quarter.

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  • Foreign Exchange Reserves Indonesia Continued to Drop in October

    Foreign Exchange Reserves Indonesia Continued to Drop in October

    The central bank of Indonesia announced on Friday (06/11) that Indonesia's foreign exchange reserves have fallen by USD $1 billion to USD $100.7 billion at the end of October 2015. The decline was caused by foreign debt payments and efforts to stabilize the fragile rupiah (Indonesia's currency is sensitive to market expectations regarding looming higher US interest rates).

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  • Bank Indonesia Cuts 2015 Inflation Projection to 3.6%

    Bank Indonesia Cuts 2015 Inflation Projection to 3.6%

    The central bank of Indonesia (Bank Indonesia) expects to see a sharp slowdown in inflation in the last couple of months of 2015. Currently, the annual inflation pace stands at 6.83 percent (y/y). However, by the year-end Bank Indonesia estimates the consumer price index to have eased to 3.6 percent (y/y), which would be in the lower range of its 2015 inflation target (3-5 percent y/y). This update was given by Bank Indonesia Governor Agus Martowardojo when meeting the Financial Sector Stability Coordination Forum (FKSSK).

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  • Bank Indonesia: Still 320 Companies to Comply with Hedging Rules

    Bank Indonesia: Still 320 Companies to Comply with Hedging Rules

    Agus Martowardojo, Governor of the central bank of Indonesia (Bank Indonesia), said there are still 320 local companies that have not complied with the central banks' hedging requirements regarding foreign loans. A Bank Indonesia study conducted in late-2014 showed that the country’s private sector foreign debt is vulnerable to several risks i.e. currency risks, liquidity risks and overleverage risks due to unhedged loans.

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Latest Columns Bank Indonesia

  • Indonesia Stock Exchange Gains Amid Global Positive Market Sentiments

    Apparently, market participants were eagerly waiting for positive news regarding stimulus packages that various central banks will apply to boost local economies. Once the news spread, investors hunted for stocks that previously weakened. Moreover, increased manufacturing data from the USA and Europe contributed to positive market sentiments. Lastly, China indicated to maintain its economic pace of 7.5 percent GDP growth this year.

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  • Results of Italian Elections Turn Most Stock Indices Downwards

    On Tuesday's trading day, the Indonesia Stock Exchange (IHSG) was not able to maintain its record breaking upward movement. China's possible decision to limit credit growth in the property sector and the election in Italy contributed significantly to the decline of the IHSG. Moreover, it was influenced by poor openings of European stock markets. Investors thus decided to engage in profit taking, while waiting for further global developments.

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  • Agus Martowardojo Nominated for Governor of Indonesia's Central Bank

    Agus Martowardojo Nominated for Governor of Indonesia's Central Bank

    President Susilo Bambang Yudhoyono has nominated Agus D.W. Martowardojo, currently serving as Finance minister, to replace Darmin Nasution as governor of Bank Indonesia, Indonesia's central bank. Nasution, who has been governor since September 2010, will see his term end in May this year. To become the next governor, Martowardojo still needs approval of Indonesia's House of Representatives (DPR), and that might be a bottleneck.

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  • Economic Minister Hatta Rajasa Says Government Won't Join a Currency War

    Recent concerns about a global currency war, which is considered to threaten worldwide economic and financial stability, has prompted Indonesia's Economic minister Hatta Rajasa to ensure that Indonesia will not participate in such a tactic. The Central Bank of Indonesia (Bank Indonesia) has in fact been selling US dollars to support the IDR rupiah, which has been under growing pressure lately due to Indonesia's current account deficit and the risk of capital outflows.

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  • Indonesia Stock Exchange (IHSG) Sets a New Record High Again

    A continued positive movement of the Nikkei index provided good support for the Indonesia Stock Exchange (IHSG) on Tuesday's trading day. Many Asian stock markets have not opened yet after the Chinese new year and therefore the Nikkei became the reference for the performance of the IHSG. Apart from the influence of the Nikkei, many Indonesian company reports that were published today, had a positive effect on the IHSG, resulting in a new record high.

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  • Small Gain for the IHSG after the Chinese New Year Celebrations

    It seems that the Indonesia Stock Exchange (IHSG) was blessed by the Chinese new year celebrations as it closed higher on Monday than on the previous trading day. This is a better performance than usual on the days around the new year. If we take a look at the period 2008-2012, the IHSG declined three times on the day before new year, and twice on the day after. This year, the IHSG declined on the day before by -0.26% and increased by 0.27 on the day after.

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  • BRI's 2012 Results Mark the Continued Strength of Indonesia's Financial Sector

    Bank Rakyat Indonesia - BRI - Indonesia Investments - Van der Schaar Investments B.V. Vaandelstraat Delft

    Indonesian commercial banks have shown good performance in recent years as economic growth of over six percent fuels loan demand from the people and businesses. Domestic consumption and investment are the two main drivers of the country's gross domestic product (GDP) growth. Together, these two components account for almost 90 percent of GDP. As such, lenders are in a comfortable position.

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