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Today's Headlines Bank Indonesia

  • Bank Indonesia: Consumer Confidence in Indonesia Increases in May 2014

    Bank Indonesia: Consumer Confidence in Indonesia Increases in May 2014

    According to Bank Indonesia's consumer confidence survey, Indonesian consumers were more optimistic in May 2014 compared to the previous month. Consumer confidence in Southeast Asia's largest economy increased to 116.90 in May 2014 from 113.90 in April. The increase indicates that Indonesian consumers are more optimistic about the current condition of the Indonesian economy as well as conditions in the coming six months. The result in May 2014 was also higher than in the same month in 2013 (112.8).

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  • Financial Update Indonesia: Rupiah, Current Account and Bonds Issuance

    Indonesia's central bank (Bank Indonesia) said that it expects the Indonesian rupiah exchange rate to trade between IDR 11,600 and IDR 11,800 per US dollar throughout the fiscal year of 2014. Governor of Bank Indonesia Agus Martowardojo said that this assumption is based on pressures that originate from Indonesia's current account deficit. In 2013, the current account deficit hit USD $29.09 billion, or 3.33 percent of the country's gross domestic product (GDP). The current account balance has a major influence on the performance of a currency.

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  • Bank Indonesia Expects Trade Deficit in April and Low Inflation in May

    Central Bank of Indonesia Expects Trade Deficit in April 2014

    The central bank of Indonesia (Bank Indonesia) expects to see a trade deficit in the month of April 2014 due to a significant increase of imports (around 11 percent month-to-month), while prices of a number of important export commodities have been under pressure (including coal and crude palm oil). Governor of Bank Indonesia Agus Martowardojo said that weak demand from China impacts negatively on the trade balance. Bank Indonesia's statement contradicts the institution's earlier statement which hinted at a surplus of USD $600 million in April.

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  • Update Indonesia's Current Account Deficit and Foreign Exchange Reserves

    Indonesian Finance Minister Chatib Basri said that the country's current account deficit, the broadest measure of international transactions, may widen in the second quarter of 2014 as many local companies engage in business expansion. Such expansion usually triggers an increased amount of imports, thus impacting on the trade balance. A widening current account deficit in the second quarter of the year is a normal trend. The balance usually improves in the third and fourth quarters.

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  • Bank Indonesia Expects USD $600 Million Trade Surplus in April 2014

    The Governor of Indonesia’s central bank (Bank Indonesia), Agus Martowardojo, expects that the country’s trade balance will post a surplus of around USD $600 million in April 2014, roughly similar to the surplus that was recorded one month earlier (USD $673 million). The April 2014 surplus would be supported by an improvement in non-oil & gas exports, stable commodity prices (particularly coal and crude palm oil/CPO), as well as the waning influence of the Minerba Act.

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  • Growth of Residential Property Prices in Indonesia Still Slowing in Q1-2014

    The Residential Property Price Survey still indicates slowing growth of Indonesian residential property prices (in the primary market) in the first quarter of 2014. The Residential Property Price Index grew 1.45 percent (quarter to quarter) in the first quarter of 2014 or 7.92 percent year-on-year, lower than the growth that was recorded in the previous quarter of 1.77 percent (qtq) or 11.51 percent (yoy). The slowdown occurred in all types of homes, but in particular the medium and large homes segment.

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  • Current Account Deficit of Indonesia Eases to USD $4.2 Billion in Q1-2014

    The central bank of Indonesia (Bank Indonesia) announced that the improving trend of the current account deficit continued in the first quarter (January-March) of 2014. The current account deficit fell from USD $4.3 billion, equivalent to 2.12 percent of the country's gross domestic product (GDP) in the fourth quarter of 2013 to USD $4.2 billion (2.06 percent of GDP) in Q1-2014. This improvement was brought about due to a decrease in imports of goods and the narrowing deficits in the services and income accounts.

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  • Bank Indonesia Maintains Interest Rates as Inflation & Trade Data Improve

    At the Board of Governors Meeting (08/05), Bank Indonesia decided to keep its benchmark interest rate (BI Rate) at 7.50 percent, the Lending Facility at 7.50 percent and the Deposit Facility at 5.75 percent. Bank Indonesia considers this monetary policy consistent with efforts to direct inflation back to its target level of 4.5 ± 1 percent in 2014 and 4.0 ± 1 percent in 2015, as well as to further ease the country's current account deficit to a more sustainable level. On Friday, Bank Indonesia is expected to release current account data covering Q1-2014.

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  • Indonesian Rupiah Exchange Rate Update: Export Concerns & BI Rate

    The Indonesian rupiah exchange rate continued its recent depreciating trend on Thursday (08/05). According to the Bloomberg Dollar Index, the currency had depreciated 0.36 percent to IDR 11,619 per US dollar at 13:30 local Jakarta time. Apart from market participants' wait and see attitude ahead of results of Bank Indonesia's Board of Governors Meeting, which is held today and will inform whether the current benchmark interest rate of 7.50 percent will be maintained, increased concerns about exports to China also put pressure on the rupiah.

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  • Indonesian Foreign Exchange Reserves Rise to USD $105.6 in April 2014

    The foreign exchange reserves at the central bank of Indonesia (Bank Indonesia) increased about USD $3 billion to USD $105.6 billion at the end of April 2014, the highest level in 15 months, particularly due to export earnings of government-owned oil and gas exporters. Bank Indonesia said that the current position of forex reserves is equivalent to 6.1 months of imports or 5.9 months of imports and servicing external debt (well above the international standard of three months of imports). Today, the central bank's Board of Governors Meeting is held.

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Latest Columns Bank Indonesia

  • Subscriber Update - Bank Indonesia Goes for Another Interest Rate Cut

    Subscriber Update - Bank Indonesia Goes for Another Interest Rate Cut

    It came as a big surprise to us when the central bank of Indonesia (Bank Indonesia) announced on 19 November 2020 (the day it concluded its two-day monetary policy meeting) that it decided to cut its benchmark interest rate (the seven-day reverse repo rate) by 25 basis points to 3.75 percent. Bank Indonesia also cut its deposit facility and lending facility rates by 25 basis points to 3.00 percent and 4.50 percent, respectively.

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  • Rising Concerns Over Whether Bank Indonesia Remains Independent from the Government

    Rising Concerns Over Whether Bank Indonesia Remains Independent from the Government

    In September 2020 concern arose over whether the House of Representatives (DPR) is trying to undermine the country’s central bank (Bank Indonesia)’s independence (from the government). The DPR’s legislation body came with a bill (a draft revision of the Bank Indonesia Law) that contains a number of controversial articles, making analysts concerned about the quality of future monetary policymaking in Indonesia.

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  • Monetary Policy Indonesia: the Need for Hawkish Statements Reduces

    Monetary Policy Indonesia: the Need for Hawkish Statements Reduces

    In line with expectations, the central bank of Indonesia (Bank Indonesia) kept its benchmark BI 7-Day Reverse Repo Rate at 6.00 percent at the February policy meeting that was held on 20-21 February 2019. Also the deposit facility and lending facility rates were kept at 5.25 percent and 6.75 percent, respectively.

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  • Monetary Policy: Bank Indonesia Leaves Interest Rates Unchanged in December

    Monetary Policy: Bank Indonesia Leaves Interest Rates Unchanged in December

    In line with expectations, the central bank of Indonesia (Bank Indonesia) left its interest rates unchanged at the last monetary policy meeting of 2018 (held on 19-20 December 2018). The benchmark BI 7-Day Reverse Repo Rate was held at 6.00 percent, while the deposit facility and lending facility rates were kept at 5.25 percent and 6.75 percent, respectively.

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  • Indonesia Sees Widening Current Account Deficit in Q2-2018

    Indonesia Sees Widening Current Account Deficit in Q2-2018

    Concerns about Indonesia's current account balance increased after Bank Indonesia announced last week that the country's current account deficit widened to USD $8.02 billion, or 3.0 percent of gross domestic product (GDP), in the second quarter of 2018. It is Indonesia's highest quarterly deficit since Q3-2014, thus putting additional pressures on the rupiah exchange rate.

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  • Bank Indonesia Kept 7-Day Reverse Repo Rate at 5.25%; Analysis

    Bank Indonesia Kept 7-Day Reverse Repo Rate at 5.25%; Analysis

    Bank Indonesia decided to hold the BI 7-day Reverse Repo Rate at 5.25 percent during the July 2018 monthly policy meeting. It also maintained the deposit facility and lending facility rates at 4.50 percent and 6.00 percent, respectively. Bank Indonesia believes the rates are consistent with its efforts to maintain domestic financial market attractiveness against a backdrop of pervasive uncertainty on global financial markets.

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