Below is a list with tagged columns and company profiles.

Today's Headlines Bank Indonesia

  • Indonesia's Foreign Exchange Reserves Tumble for 5th Straight Month

    Indonesia's Foreign Exchange Reserves Tumble for 5th Straight Month

    The central bank of Indonesia (Bank Indonesia) announced that the nation's foreign exchange reserves had fallen to USD $119.8 billion (per end June 2018), thus declining USD $3.1 billion compared to the position in the preceding month. As such, the recent trend continued: Indonesia's foreign exchange assets have now fallen for five straight months after touching a record high of nearly USD $132.0 billion in January 2018 (see table below).

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  • A Closer Look at Bank Indonesia's Latest LTV Ratio Relaxation

    A Closer Look at Bank Indonesia's Latest LTV Ratio Relaxation

    At the latest policy meeting (29/06) Bank Indonesia decided to relax the loan-to-value (LTV) and financing-to-value (FTV) ratios in the country's property sector (effective per 1 August 2018). By lowering down payment obligations for the consumer, the central bank aims to make it more attractive for consumers to purchase property using House Ownership Credit (Kredit Pemilikan Rumah, KPR), hence boosting overall credit growth as well as Indonesia's macroeconomic growth.

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  • Bank Indonesia Raises Key Interest Rate by 50 bps to 5.25%

    Bank Indonesia Raises Key Interest Rate by 50 bps to 5.25%

    As we had predicted this morning, Bank Indonesia decided to raise its benchmark interest rate by 50 basis points (bps) to 5.25 percent at the two-day June policy meeting that was concluded earlier today. Presumably markets had been expecting a 25 bps rate hike (therefore being priced in already) and therefore the central bank of Indonesia possibly felt it had to take a more aggressive approach to defend the Indonesian rupiah that had weakened beyond the IDR 14,400 per US dollar level.

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  • Market Participants Await Bank Indonesia's Policy Decision

    Market Participants Await Bank Indonesia's Policy Decision

    The Indonesian rupiah continues to slide on Friday (29/06) and is now hovering around the IDR 14,400 per US dollar level. The weak rupiah reaffirms analysts' expectations of seeing another interest rate hike. Today, the central bank of Indonesia (Bank Indonesia) will conclude its June policy meeting. But perhaps the crucial question is not "will Bank Indonesia raise its benchmark rate?" Possibly the more crucial questions are "by how much will it raise its rate?" and "what other policies will it implement to strengthen rupiah stability as well as financial stability?"

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  • Stocks & Currency Update Indonesia: Jakarta Composite Index & Rupiah

    Stocks & Currency Update Indonesia: Jakarta Composite Index & Rupiah

    Asian stocks and emerging market currencies continue to be under pressure on Thursday morning (28/06) amid uncertainty regarding US authorities' stance on Chinese investment in US tech companies, ongoing concerns over the impact of simmering global trade woes on economic growth, and rising crude oil prices. However, as we approach the lunch break there are some signs of a rebound in Asian markets.

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  • Bank Indonesia Delays June Monthly Policy Meeting by One Day

    Bank Indonesia Delays June Monthly Policy Meeting by One Day

    Earlier this week, Wednesday 27 June 2018 was declared a public national holiday by the Indonesian government through Presidential Decision No. 48/2018. Reason being the local elections that are held in 171 regions across Indonesia. A free day would provide more opportunities for workers to cast their vote. Earlier, the Indonesia Stock Exchange had already confirmed that it would operate as usual on this regional election day.

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  • Foreign Exchange Reserves Indonesia Fell Further in May 2018

    Foreign Exchange Reserves Indonesia Fell Further in May 2018

    The central bank of Indonesia (Bank Indonesia) announced that the nation's official foreign exchange reserves stood at USD $122.9 billion at the end of May 2018, down from USD $124.9 billion in the preceding month. The decline, which had been expected, was mainly due to the use of foreign exchange to repay public foreign debt and to stabilize the Indonesian rupiah amid persistently high uncertainty in global financial markets.

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  • Bank Indonesia Raises Key Interest Rate in Unscheduled Meeting

    Bank Indonesia Raises Key Interest Rate in Unscheduled Meeting

    In line with expectations the central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate - the BI seven-day reverse repo rate - by 25 basis points to 4.75 percent in an unscheduled meeting on Wednesday (30/05). In combination with the scheduled monthly policy meeting on 16-17 May 2018, Bank Indonesia raised the benchmark interest rate by a total of 0.50 percent this month.

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  • Bank Indonesia Schedules Additional Meeting; New Rate Hike Expected

    Bank Indonesia Schedules Additional Meeting; New Rate Hike Expected

    Newly inaugurated Bank Indonesia Governor Perry Warjiyo seemingly does not want to wait until the planned 27-28 June 2018 monthly monetary policy meeting to take action. Bank Indonesia announced that it scheduled an additional (ad hoc) policy meeting for Wednesday 30 May 2018. It is assumed that Bank Indonesia will raise its benchmark interest rate again by 25 basis points (to 4.75 percent) at this occasion in a bid to curtail capital outflows and defend the rupiah (which has been under heavy pressures in recent months).

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  • Bank Indonesia Raises Key Interest Rate to 4.50% at May Meeting

    Bank Indonesia Raises Key Interest Rate to 4.50% at May Meeting

    In line with our expectation, the central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate (BI 7-Day Reverse Repo Rate) by 25 basis points (bps) to 4.50 percent at the monetary policy meeting in May 2018 that was concluded today (17/05). Agus Martowardojo, Governor of Bank Indonesia, added that the deposit facility and lending facility were raised to 3.75 percent and 5.25 percent, respectively.

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Latest Columns Bank Indonesia

  • Bank Indonesia Concerned about Level of Privately-Held Foreign Debt

    The central bank of Indonesia recently issued new regulations (Bank Indonesia Regulation No. 16/21/PBI/2014 and External Circular No. 16/24/DKEM) that aim to safeguard Indonesia’s financial fundamentals. These new regulations, which are an improvement of Bank Indonesia Regulation No. 16/20/PBI/2014 dated Oct. 28 2014, force Indonesian non-bank corporations to apply prudent fiscal management regarding foreign-denominated debt. Bank Indonesia felt these rules are needed as privately-held foreign debt rises continuously.

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  • Consumer Confidence in Indonesia Declines in December 2014

    The latest survey of Indonesia’s central bank indicates that consumer confidence fell in December 2014. The central bank’s Consumer Confidence Index fell 3.6 points to 116.5 in the last month of 2014 (a score above 100 signals optimism among consumers) due to the impact of higher subsidized fuel prices implemented in November 2014. This move triggered higher prices of products and services. The central bank’s Consumer Confidence Index is based on interviews with 4,600 households in 18 Indonesian cities.

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  • Analysis of Indonesia’s Dec Inflation and Nov Trade Balance

    Analysis of Indonesia’s Dec Inflation and Nov Trade Balance

    Indonesia’s inflation pace accelerated in December 2014, exceeding estimations of analysts and Indonesia’s central bank. December inflation, 2.46 percent (m/m) or 8.36 percent (y/y), accelerated due to the impact of higher subsidized fuel prices (introduced in November) and volatile food prices (fluctuating rice and chili prices at the year-end). Other factors that contributed to high inflation in 2014 were higher electricity tariffs for households and industries, the higher price of 12 kg LPG, and an airfare adjustment.

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  • Indonesia & Malaysia Support Banking Integration in ASEAN Region

    Bank Indonesia (the central bank of Indonesia) and the Financial Services Authority (OJK) signed an agreement (the ASEAN Banking Integration Framework, abbreviated ABIF) with Malaysia’s central bank to support banking integration in the ASEAN region. The website of Bank Indonesia states that ABIF “provides an operating framework for ASEAN member states to implement principles and the integration process in the banking sector to support the ASEAN Economic Community (AEC) [which is to be implemented later this year]”.

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  • Prudent Fiscal Management; IMF Positive about Indonesian Economy

    Prudent Fiscal Management; IMF Positive about Indonesian Economy

    A team of the International Monetary Fund (IMF), led by David Cowen (advisor at the IMF’s Asia and Pacific Department), visited several Indonesian cities in the first three weeks of December 2014 to conduct research on the economic fundamentals of Southeast Asia’s largest economy. This research included the study of recent macroeconomic developments as well as the formulation of prognosis scenarios for the short and middle term. The IMF team held discussions with the government, Bank Indonesia, private entrepreneurs and scholars.

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  • Foreign Debt of Indonesia Grew 10.7% y/y in October 2014

    External debt of Indonesia grew at a pace of 10.7 percent year-on-year (y/y) in October 2014, slightly slower than the 11.2 percentage point (y/y) growth pace in the previous month, according to a statement of Indonesia’s central bank (Bank Indonesia). Total outstanding external debt of Indonesia reached USD $294.5 billion in October (from USD $292.3 billion in the previous month). While growth of public sector external debt slowed in October, private sector external debt accelerated.

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  • Indonesian Rupiah Exchange Rate Rebounds from Six-Year Low

    Indonesian Rupiah Exchange Rate Rebounds from Six-Year Low

    Contrary to the previous trading day, most emerging Asian currencies strengthened against the US dollar on Tuesday (09/12) supported by the yen’s advance as falling oil prices dented risk appetite. Based on the Bloomberg Dollar Index, Indonesia’s rupiah appreciated 0.47 percent to IDR 12,331 per US dollar today. Despite local firms’ increased US dollar demand to settle debt before the year-end, market participants were happy to learn that Indonesia’s central bank is active in the foreign exchange market to guard the currency.

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  • Stock Market & Rupiah Update Indonesia: Bad Start of the Week

    Stock Market & Rupiah Update Indonesia: Bad Start of the Week

    Despite positive stock indices in the USA and Europe at the end of last week as well as mostly positive indices in Asia today (08/12), the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) fell due to investors’ appetite for profit taking. Several matters made investors decide to sell their Indonesia shares, including the World Bank’s downward revision of Indonesia’s economic growth in 2015, Japan’s recession, weakening Chinese exports, and the sharply depreciating rupiah exchange rate.

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  • Bank Indonesia about Inflation and the Current Account Deficit

    Bank Indonesia about Inflation and the Current Account Deficit

    The central bank of Indonesia expects that Indonesia’s current account deficit will decline to below the three percent of gross domestic product (GDP) mark by the end of this year supported by sharply falling global oil prices and Indonesia’s recent subsidized fuel price hike. Hendar, Deputy Governor of the central bank, said that for every USD $1 decline in global oil prices, the country’s current account deficit narrows by about USD $170 million. Indonesia’s current account deficit fell to 3.1 percent of GDP in Q3-2014 (from 4.06 percent of GDP in Q2-2014).

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  • Macroeconomic Stability Indonesia: Inflation and GDP Update

    The Governor of Indonesia’s central bank, Agus Martowardojo, said that he expects inflation to accelerate to 6.1 percent year-on-year (y/y) in November 2014, significantly up from 4.83 percent y/y in the previous month. Accelerated inflation is caused by the multiplier effect triggered by the recent subsidized fuel price hike in Southeast Asia’s largest economy. On 18 November 2014, the government introduced higher prices for subsidized fuels in a bid to reallocate public spending from fuel consumption to structural development.

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