Below is a list with tagged columns and company profiles.

Today's Headlines Bank Indonesia

  • Bank Indonesia Keeps Interest Rates Unchanged on Global Uncertainty

    For the sixth straight month, the central bank of Indonesia (Bank Indonesia) left its interest rate regime unchanged at Tuesday’s Board of Governor’s meeting (18/08) as it aims to guard the rupiah against severe volatility (which occurred after China’s yuan was allowed to devalue, while markets are still preparing for monetary tightening in the USA) and tries to combat inflation.

    Read more ›

  • Current Account Deficit Indonesia Improves on Weak Imports

    The central bank of Indonesia (Bank Indonesia) announced on Friday (14/08) that the country’s current account deficit narrowed to USD $4.48 billion, or 2.1 percent of gross domestic product (GDP), in the second quarter of 2015. In the same quarter last year the deficit stood at USD $9.59 billion). As such, the current account deficit (CAD) has become more sustainable and this may provide some support for the rupiah which is currently facing tough times (ahead of a looming US interest rate and China’s yuan devaluation).

    Read more ›

  • Indonesian GDP Growth and Inflation Expected to Slow further

    The pace of economic growth of Indonesia is expected to remain below five percent year-on-year (y/y) in the second quarter of 2015 according to Reuters poll involving 22 analysts. In fact, the poll shows that further slowing economic growth is expected. In the first quarter of 2015, Indonesia’s economic growth came at 4.71 percent (y/y), the weakest growth pace in six years. According to the poll, analysts see a gross domestic product (GDP) growth rate of 4.61 percent (y/y) in the second quarter of 2015.

    Read more ›

  • Consumer Price Index Indonesia: July Inflation under Control

    The central bank of Indonesia (Bank Indonesia) expects to see Indonesian inflation in July in the range of 0.46 - 0.60 percent month-on-month (m/m). Inflation in Indonesia always peaks during the months June, July and August due to increased consumer spending in the context of Ramadan and Idul Fitri celebrations as well as the start of the new school season. Earlier this month, Governor Agus Martowadojo said to expect annual inflation to dip below 7 percent in July, from 7.26 percent (y/y) in June.

    Read more ›

  • Indonesian Rupiah Update: Close to IDR 13,400 per US Dollar

    According to the Bloomberg Dollar Index, the Indonesian rupiah continued to depreciate on Monday (20/07). Indonesia’s currency weakened 0.31 percent to IDR 13,395 per US dollar, its weakest level since 1998 when the country was plagued by the Asian Financial Crisis. Meanwhile, Bank Indonesia’s activities are still limited until Wednesday (22/07) due to a public holiday (Idul Fitri celebrations), implying that the central bank temporarily doesn't publish its Jakarta Interbank Spot Dollar Rate (abbreviated: JISDOR).

    Read more ›

  • Indonesia Posts 7th Straight Trade Surplus in June but Concerns Persist

    Indonesia recorded a USD $477 million trade surplus in June 2015, the country’s seventh consecutive trade surplus. However, according to the latest data from Statistics Indonesia (BPS), released on Wednesday (14/07), Indonesia’s June exports fell 12.8 percent (y/y) to USD $13.4 billion, while imports fell 17.4 percent (y/y) to USD $12.9 billion. These figures show that Indonesia’s trade surplus is primarily caused by weak domestic demand "outperforming" weak global demand, hence raising concerns about global and domestic economic growth.

    Read more ›

  • Bank Indonesia Holds Interest Rates for 5th Straight Month in July

    As expected Indonesia's central bank (Bank Indonesia) refrained from adjusting its interest rate regime at Tuesday’s Board of Governor’s meeting (14/07). The key BI rate was kept at 7.50 percent, while the overnight deposit rate (Fasbi) and lending facility rate were left at 5.50 percent and 8.00 percent, respectively. Bank Indonesia believes that the current interest rate environment is in line with its efforts to bring down inflation while supporting Indonesia’s ailing rupiah ahead of expected further monetary tightening in the USA later this year.

    Read more ›

  • Bank Indonesia Not Expected to Cut Interest Rate Regime Yet

    Most analysts agree that the central bank of Indonesia (Bank Indonesia) will leave its interest rate regime unchanged at the Board of Governors’ Meeting that is scheduled for Tuesday 14 July 2015. Indonesia’s central bank is expected to maintain its key interest rate (BI rate) at 7.50 percent, the overnight deposit facility rate (Fasbi) at 5.50 percent, and the lending facility rate at 8.00 percent as the country’s inflation rate has recently accelerated while the rupiah has been under pressure due to external factors.

    Read more ›

  • IMF Cuts Global Growth Outlook 2015; BI Sees Flat Growth in Q2-2015

    The International Monetary Fund (IMF) cut its forecast for global economic growth in 2015 to 3.3 percent (y/y), from 3.5 percent (y/y) previously, as the harsh winter impacted on the US economy and drags down global growth accordingly. In the first quarter of 2015, the US economy contracted 0.2 percent (y/y). Moreover, turmoil in Greece and China cause great volatility on international financial markets, the Washington-based institution said in an update to its World Economic Outlook (WEO) on Thursday (09/07).

    Read more ›

  • Indonesia’s Foreign Exchange Reserve’s Continue to Decline

    Indonesia’s foreign exchange reserves fell USD $2.8 billion to USD $108.0 billion at the end of June 2015 (from USD $110.8 billion one month earlier). This fall was caused by foreign debt repayment and the use of foreign exchange to stabilize the rupiah exchange rate. Due to external pressures (particularly looming further monetary tightening in the USA this year and the possible Greek exit from the euro), the rupiah is the worst performing Asian currency tracked by Bloomberg so far in 2015, weakening about 7 percent against the US dollar.

    Read more ›

Latest Columns Bank Indonesia

  • Bank Indonesia: Trade Balance of Indonesia Expected to Improve in 2014

    The central bank of Indonesia (Bank Indonesia) believes that the USD $430 million trade deficit that was recorded in January 2014 is a normal result taking into account the implementation of the ban on exports of unprocessed minerals (which reduces exports of materials such as copper and nickel) and seasonal trends as exports are always lower in January than in December due the end of winter peak demand for raw materials and ongoing contractual negotiations at the beginning of each year.

    Read more ›

  • Bank Indonesia's Analysis of February Inflation and January Trade Deficit

    The rate of Indonesian inflation eased in February 2014. Inflation decelerated in February 2014 to 0.26 percent (month-to-month) or 7.75 percent (year-on-year), down from the previous month at 1.07 percent (mtm) or 8.22 percent (yoy) respectively. The drop in the inflation rate is attributable to central and local government policy taken to minimize the second-round effects of recent natural disasters, thereby bringing the inflation of volatile foods in the reporting month to just 0.32 percent (mtm) or 9.85 percent (yoy).

    Read more ›

  • Optimism about the Performance of the Indonesian Rupiah Rate in 2014

    The central bank of Indonesia (Bank Indonesia) is optimistic that the country's currency will continue to appreciate against the US dollar in the first quarter of 2014. Executive Director at the Economic and Monetary Policy Department of Bank Indonesia Juda Agung said that there are two factors that impact positively on the performance of the Indonesian rupiah exchange rate: the improved global economy and strengthening domestic economic fundamentals. However, Agung declined to estimate the value of the rupiah by the end of Q1-2014.

    Read more ›

  • Bank Indonesia: Export Ban Causes Slowing Economy Eastern Regions

    The central bank of Indonesia (Bank Indonesia) believes that Indonesia's recently introduced ban on the export of unprocessed minerals, in effect since 12 January 2014, will result in slowing economic growth in several regions in the eastern part of Indonesia as these regions are main sources of mineral production. Doddy Zulverdi, Head of the Economic Assessment Group in Bank Indonesia's Department of Economic and Monetary Policy, said that Sulawesi and Kalimantan will post slowing economic growth this year.

    Read more ›

  • Jakarta Composite Index and Rupiah Continue Winning Streaks

    The Jakarta Composite Index (Indonesia's benchmark stock index, also known as IHSG) continued its upward rally on Monday (17/02) even though it had concerned us that the index almost touched its 'overbought' level. Especially as the index posted limited gain by the end of last week, it made us unsure about its performance on Monday. And while there are several factors that caused positive market sentiments, we still warn for potential weakening of the index due to profit taking. On Monday (17/02), the IHSG rose 1.05% to 4,555.37 points.

    Read more ›

  • Indonesia's Rupiah Extends Momentum on China Lending and Trade Data

    The Indonesian rupiah exchange rate continued its recent appreciating trend on Monday (17/02). Based on the Bloomberg Dollar Index, the currency strengthened 0.39 percent to IDR 11,785 per US dollar at 16:00 local Jakarta time. Main reason for this renewed confidence in the rupiah is Indonesia's current account deficit, which eased significantly by the end of 2013. According to Bank Indonesia, the deficit eased from 4.4 percent of gross domestic product (GDP) in the second quarter of 2013 to 1.98 percent of GDP in Q4-2013.

    Read more ›

  • Indonesia's Stock Index Down 0.10% But Rupiah Strengthens Sharply

    The weakening Dow Jones Index on Wednesday (12/02) caused negative market sentiments in Asia the following day. Most Asian indices, including Indonesia's Jakarta Composite Index (IHSG), were down. Not even the announcement that Bank Indonesia decided to maintain its benchmark interest rate (BI rate) at 7.50 percent was able to push the IHSG back in the green zone. Investors probably already anticipated the central bank's decision as it was in line with the market's expectation.

    Read more ›

  • Official Press Release of Bank Indonesia: BI Rate Kept at 7.50%

    At Bank Indonesia's Board of Governors’ Meeting today (13/02), it was decided to maintain the country's benchmark interest rate (BI rate) at 7.50 percent as well as the interest rates on the Lending Facility and Deposit Facility at 7.50 percent and 5.75 percent respectively. The policy is consistent with the tight monetary policy stance currently adopted in order to steer inflation back towards its target corridor of 4.5±1 percent in 2014 and 4±1 percent in 2015, as well as to reduce the current account deficit to a more sustainable level.

    Read more ›

  • Inflation Update January 2014: Analysis of Indonesia's 1.07% of Inflation

    The pace of Indonesia's monthly January inflation rate was higher in 2014 than in the same month during the past five years. This relatively high inflation rate this year, recorded at 1.07 percent, was caused by severe rainfall and floods in several parts of Indonesia (particularly in the cities of Jakarta and Manado) amid the peak of the rainy season. These weather-related circumstances impacted on prices of food products as distribution channels were disrupted, thus giving rise to increasing prices. Annual inflation, however, slightly eased.

    Read more ›

  • Analysis: What Caused Indonesia's Slowing Economic Growth in 2013

    On Wednesday 5 February 2014, Statistics Indonesia (BPS, a non-departmental government institute) is expected to release Indonesia's official GDP growth figure for the year 2013. It is estimated that the outcome will be the lowest GDP growth figure since 2009 when Southeast Asia's largest economy grew 4.6 percent after feeling the impact of the global financial crisis. In 2013, again, Indonesia felt the negative influence of external troubles. And in combination with domestic factors, Indonesia's economic growth is expected to be around 5.7 percent in 2013.

    Read more ›

Associated businesses Bank Indonesia