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Today's Headlines GDP

  • Fitch Ratings Affirms Indonesia's Sovereign Credit Rating at BBB-/Stable

    Fitch Ratings Affirms Indonesia's Sovereign Credit Rating at BBB-/Stable

    Fitch Ratings, one of the three major global rating agencies, affirmed Indonesia's sovereign credit rating at BBB- with a stable outlook. In a press release, the rating agency mentioned four key factors that led to the affirmation of the sovereign rating. These are: good policy management by Indonesia's central bank (Bank Indonesia) and government amid external pressures, relatively high economic growth, prudent fiscal management (resulting in low public debt), and a strong banking sector (confirmed by multiple stress tests).

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  • Agus Martowardojo Comments on Indonesia's Macroeconomy in 2014

    Agus Martowardojo Comments on Indonesia's Macroeconomy in 2014

    Agus Martowardojo, Governor of Indonesia's central bank, expects the Indonesian economy to consolidate in 2014. The country is currently experiencing an economic correction with GDP growth slowing to 5.62 percent in the third quarter of 2013. Martowardojo said that the current account deficit still needs time to reach a healthy level. Indonesia's current account deficit stood at USD $8.4 billion (equivalent to 3.8 percent of the country's GDP) in the third quarter of 2013, down from USD $9.8 billion (4.4 percent of GDP) in the second quarter.

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  • Bank Indonesia Expects Indonesia's Economy to Grow 5.7% in 2013

    Agus Martowardojo, Governor of Indonesia's central bank (Bank Indonesia), stated that the country's economy is expected to grow 5.7 percent in 2013. Bank Indonesia believes GDP growth in the fourth quarter of 2013 to fall below the growth figure realized in Q3-2013 (5.62 percent). Martowardojo said that the government needs to continue measures to improve the country's exports, while trying to curtail imports of oil and gas as domestic demand for fuels remained high, even after the increase in prices of subsidized fuels in June 2013.

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  • Indonesia's Unemployment Rate Rises Slightly in August 2013

    Indonesia's unemployment rate rose slightly in August 2013 from the same month last year. The country's open unemployment rate rose from 6.14 percent to 6.25 percent (of the total labour force). In absolute numbers this translates to 7.4 million jobless Indonesians. Head of Statistics Indonesia, Suryamin, said that Indonesia's slowing economic growth was the main reason for the rise in unemployment, while the supply of human resources increased. In the third quarter of 2013, Indonesia's GDP growth fell to 5.62 percent (yoy).

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  • Indonesian Government Planning to Revise the Negative Investment List

    The Indonesian government is in the process of revising the country's Negative Investment List (the list that states which sectors of the economy are closed to foreign investment). Head of the Indonesia Investment Coordinating Board (BKPM), Mahendra Siregar, said that a number of (sub) sectors, previously closed to foreign investment, will be opened up this year. These sectors include telecommunication, financial institutions, pharmaceuticals, tourism, airport and seaport transportation services and management, healthcare, and advertising.

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  • Indonesia's Economic Growth (GDP) Continues to Slow Down in Q3-2013

    Today (06/11), Statistics Indonesia announced that Indonesia's gross domestic product (GDP) expanded 5.62 percent in the third quarter of 2013 from the same period in 2012. The result implies the continuation of Indonesia's slowing economic growth as Q3-2013 constitutes the fifth consecutive quarter in which the country recorded slowing economic growth. Previously, the government had already expressed its concern about the GDP growth figure in Q3-2013 because the current high inflation rate curbs household consumption.

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  • Bank Indonesia: Indonesia's October Inflation Likely to Fall Below 0.26%

    Perry Warjiyo, Deputy Governor of Indonesia's Central Bank (Bank Indonesia), expects that the inflation rate in October 2013 will fall below 0.26 percent (which is the average October inflation rate since 2007). Warjiyo said that a survey of Bank Indonesia indicated that up to the third week of October, inflation had only reached 0.06 percent. Low inflation - or preferably deflation - is needed to curb Indonesia's current high inflation rate. In September 2013, annual inflation was recorded at 8.40 percent.

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  • Moody's: Despite Some Risks Outlook for Indonesia's Economy Still Stable

    Moody's Investors Service, one of the big credit rating agencies, stated in its 'Credit Analysis: Indonesia' report that - despite the ongoing current account deficit (which is considered to be structural) and a relatively shallow and volatile domestic capital market (which contributes to Indonesia’s reliance on external funding) - the agency is positive about Indonesia's outlook due to its growth prospects, narrow fiscal deficits and low public debt. Indonesian government bonds are rated at Baa3, which is Moody's lowest investment-grade status.

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  • Bank Indonesia: Indonesia's External Debt Growth Slowing in August 2013

    Indonesia’s foreign debt was recorded at USD $257.30 billion in August 2013, a 0.9 decrease compared to foreign debt in July 2013 (USD $259.61 billion). On an annual basis (yoy), foreign debt growth in August was 6.6 percent, thus slowing compared to July’s growth of 7.4 percent (yoy). The central bank of Indonesia (Bank Indonesia) considers that the slowing growth in the country's foreign debt is in line with the slowing growth of the domestic economy. Indonesia's GDP growth forecast has been revised down to below the six percent mark.

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  • Sovereign Credit Rating of Indonesia held at BBB-/stable outlook

    The Rating and Investment Information Inc (R&I), a rating agency from Japan, kept Indonesia’s Sovereign Credit Rating at BBB- with a stable outlook. In their press release, R&I stated that the four key factors behind the decision are: (a) Indonesia’s capacity to achieve sustainable economic growth in the long term (at around six percent per year); (b) conservative fiscal management (causing a marginal fiscal deficit); (c) a sound banking sector; and (d) a low level of government debt.

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Latest Columns GDP

  • Fitch Ratings Revises Indonesia's Rating Outlook to "Positive"

    Fitch Ratings Revises Indonesia's Rating Outlook to "Positive"

    Global credit rating agency Fitch Ratings affirmed Indonesia's long-term foreign- and local-currency issuer default ratings at 'BBB-' but revised the outlook from 'stable' to 'positive'. The improvement is primarily attributed to Indonesia's low government debt burden and favorable economic growth outlook, while structural reforms (the government's economic policy packages that have been launched since September 2015 as well as the tax amnesty program) are gradually improving the nation's business and investment climate.

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  • Interview with Jusuf Kalla about the Indonesian Economy

    Interview with Jusuf Kalla about the Indonesian Economy

    Throughout the year 2016 the economy of Indonesia was plagued by major challenges stemming from abroad. In fact, most countries around the globe have been busy to soften the impact of low global economic growth on the local economy. In the case of Indonesia, authorities have unveiled a series of 14 economic policy packages aimed at improving investment, trade and purchasing power. Although it remains difficult to implement these packages in full force (due to the low quality of human resources at the local government level or conflicts of interests), they have helped to push Indonesia's economic growth into higher gear.

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  • International Monetary Fund (IMF) Completes Visit to Indonesia

    International Monetary Fund (IMF) Completes Visit to Indonesia

    An International Monetary Fund (IMF) team, led by Luis E. Breuer, visited Indonesia between 7 and 18 November 2016 to conduct the annual Article IV Consultation. The IMF team exchanged views with Indonesian government officials, Indonesia's central bank (Bank Indonesia), and other public agencies, as well as representatives of the private sector, academics, and students on recent economic and financial market developments and the near-to-medium-term economic outlook.

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  • 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.

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  • Analysis Performance & Accomplishments Indonesia Under Jokowi

    Analysis Performance & Accomplishments Indonesia Under Jokowi

    After two years in office, the time is ripe now to take a look at the performance and accomplishments of the government under the leadership of Joko Widodo, often called Jokowi. Indonesia's seventh president was a bit unlucky. In the first year of his rule, commodity prices were at multi-year lows (curbing Indonesia's foreign exchange earnings) amid sluggish global economic growth, while capital outflows from Indonesia occurred on the back of monetary tightening in the USA, sending the rupiah to a 17-year low in September 2015.

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  • Analysis Indonesian Economy: GDP, Monetary Policy & Stability

    Analysis Indonesian Economy: GDP, Monetary Policy & Stability

    The central bank of Indonesia (Bank Indonesia) has become slightly less optimistic about Indonesia's economic growth in the third quarter of 2016. Bank Indonesia revised down its growth projection to below the 5 percent (y/y) mark for Q3-2016 (from an earlier forecast of 5.2 percent). However, the lender of last resort still expects to see a better performance compared to the 4.73 percent (y/y) pace posted in Q3-2015. Meanwhile, low inflation and a strong rupiah could result in another interest rate cut in Southeast Asia's largest economy.

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  • Stock Market Update Indonesia: Down on ECB, Nuclear Test & GDP Growth

    Stock Market Update Indonesia: Down on ECB, Nuclear Test & GDP Growth

    In line with the performance of most stocks in Asia, Indonesia's benchmark Jakarta Composite Index plunged 1.66 percent to 5,281.92 points on Friday (09/09). Several matters brought negative market sentiments to Asia: the European Central Bank (ECB) seems unwilling to boost asset purchases, North Korea conducted its fifth nuclear test, while Indonesia's central bank announced that the nation's retail sales expanded at a slower pace in July 2016. Meanwhile, the Indonesian rupiah depreciated 0.34 percent to IDR 13,108 per US dollar (Bloomberg Dollar Index).

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  • Economic Growth Indonesia in 2016? Key Lies in Regions

    Economic Growth Indonesia in 2016? Key Lies in Regions

    After Indonesian Finance Minister Sri Mulyani Indrawati said she expects Indonesia's gross domestic product growth at 5.1 percent (y/y) in full-year 2016, Chief Economics Minister Darmin Nasution is slightly more optimistic. Nasution puts his GDP growth projection at 5.2 percent (y/y) this year despite the government's spending budget being cut by IDR 137.5 trillion. According to Nasution, rising investment realization should push economic growth to 5.2 percent (y/y), offsetting the negative impact of fewer state spending.

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  • Projection for Credit Growth in Indonesia Cut Again

    Projection for Credit Growth in Indonesia Cut Again

    Bank Indonesia cut its projection for credit growth in the nation's banking sector this year from the range of 10 - 11 percent year-on-year (y/y) to 7 - 9 percent (y/y). This downward revision is in line with the central bank's earlier decision to cut its forecast for economic growth from the range of 5.0 - 5.4 percent (y/y) to 4.9 - 5.3 percent (y/y) in 2016. The slightly less rosy outlook is caused by the Indonesian government's decision to cut spending for the remainder of the year, while global economic growth remains subdued.

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  • Bank Indonesia Adopts 7-Day Reverse Repo, Kept at 5.25%

    Bank Indonesia Adopts 7-Day Reverse Repo, Kept at 5.25%

    The central bank of Indonesia kept the BI seven-day reverse repo rate (7-day RR Rate) at 5.25 percent after its two-day August policy meeting (18-19 august 2016). At this policy meeting Bank Indonesia adopted the 7-day RR Rate as the nation's new benchmark monetary tool, replacing the BI rate that failed to influence markets significantly: despite the BI Rate having been cut from 7.50 percent to 6.50 percent so far this year, Indonesia's lending rates did not drop accordingly.

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