Below is a list with tagged columns and company profiles.

Today's Headlines BI Rate

  • Temporary Slowdown of Jakarta's Property Market due to 2014 Elections

    Temporary Slowdown of Jakarta's Property Market due to 2014 Elections

    Jakarta's property market remains prospective despite Indonesia's slowing economy and the upcoming legislative and presidential elections (scheduled for 9 April and July 2014). Luke Rowe, Technical Advisor at Jones Lang LaSalle Indonesia, said that the apartment (particularly luxurious apartments) and condominium segments in Indonesia's capital city will continue to post growth as they have done in recent years. Generally, around 90 percent of the units of a new project are sold before construction is finished.

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  • Indonesia Investments' Newsletter of 16 February 2014 Released

    Indonesia Investments' Newsletter of 16 February 2014 Released

    On 16 February 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as Bank Indonesia's benchmark interest rate, the rupiah exchange rate, tourism, trade balance, the eruption of Mount Kelud, cement sales, an update on the MP3EI, and more.

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  • Central Bank of Indonesia Maintains Benchmark Interest Rate at 7.50%

    Central Bank of Indonesia Maintains Benchmark Interest Rate at 7.50%

    The central bank of Indonesia (Bank Indonesia/BI) left its benchmark interest rate (BI rate) unchanged at 7.50 percent in the Board of Governor's Meeting on Thursday (13/02/14). This decision was in line with market expectations as several economic indicators have improved. In recent days, the rupiah exchange rate has shown a marked improvement to IDR 12,055 per US dollar (Bloomberg Dollar Index) as pressures on Indonesia's current account balance are easing and Bank Indonesia's foreign exchange reserves are rising.

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  • Amid Improving Global Economy, Indonesia Optimistic about GDP Growth

    Forecasts for economic growth in Indonesia in 2014 are still optimistic. The government of Indonesia targets a 6 percent growth rate, while the country's central bank (Bank Indonesia) expects GDP growth in the range of 5.8 to 6.2 percent. Although these forecasts clearly fall short of the target set in the country's National Medium Term Development Plan (RPJMN) - which mentions annual GDP growth of between 6.3 and 6.8 percent - the forecasts are still rather positive given the global uncertain and volatile economic context in recent years.

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  • Low Indonesian Inflation Rate Expected to Continue into January 2014

    The Governor of Indonesia's central bank (Bank Indonesia), Agus Martowardojo, expects that the pace of inflation in Indonesia in January 2014 is most likely to become one of the lowest January inflation rates in the last five years although it remains important that food supplies are maintained at safe levels. The higher price of LPG in Southeast Asia's largest economy is expected to contribute only slightly to January's inflation rate. Martowardojo also stated that Indonesia's macroeconomy is stable at the start of a new year.

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  • Indonesia's Rupiah Exchange Rate and Stock Index Rise Sharply on Monday

    Both the rupiah exchange rate and the Jakarta Composite Index strengthened significantly on Monday's trading day (13/01) after the government introduced a milder version of its mineral ore export ban on Sunday (12/01). Full implementation of the ban would have burdened the country's already wide current account deficit. The ban immediately pushed up the nickel and copper prices today. The central bank's Jakarta Interbank Spot Dollar Rate (JISDOR) rose 1.75 percent to IDR 12,047 per US dollar on Monday (13/01).

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  • Indonesia Investments' Newsletter of 12 January 2014 Released

    On 12 January 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as the implementation of Mining Law No.4/ 2009, Bank Indonesia’s interest rate policy, the expected GDP growth result of 2013, growth of retail sales, newly added company profiles, and more. 

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  • Credit Growth in Indonesia Expected to Have Slowed to 15-17% in 2013

    The central bank of Indonesia (Bank Indonesia) expects that credit growth in Southeast Asia’s largest economy will not exceed 20 percent (year on year) by the end of December 2013. Deputy Governor of Bank Indonesia, Halim Alamsyah, stated that credit growth is likely to slow to between 15 and 17 percent (yoy) in 2013 (based on a fixed rupiah exchange rate). Credit growth especially slowed in Indonesia’s consumption and construction sectors; a trend which is expected to continue in 2014.

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  • Indonesia's Rupiah Gains on Trade Balance and Forex Reserves

    The performance of the Indonesia rupiah exchange rate on Friday morning (10/01) was rather stagnant against the US dollar (the latter's movement was mixed against currencies in the Asia-Pacific) although the rupiah was up 0.12 percent to IDR 12,178 per US dollar at 13:42 local Jakarta time based on the Bloomberg Dollar Index. Positive sentiments are caused by Indonesia's narrowing current account deficit (possibly less than 3 percent of GDP in Q4-2013) and rising foreign exchange reserves at end-December 2013.

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  • Indonesia's Central Bank Maintains Interest Rate (BI Rate) at 7.50%

    Indonesia's central bank (Bank Indonesia) kept its benchmark interest rate (known as the BI rate) at 7.50 percent in today's Board of Governor's meeting (09/01). The institution decided not to change its interest rate because it estimates that the inflation target for 2014 is not in jeopardy (4.5 percent) while Indonesia's economic growth prospects for 2014 and 2015 remain unchanged. Also the overnight lending facility as well as deposit facility rate (Fasbi) were kept at 7.50 percent and 5.75 percent respectively.

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Latest Columns BI Rate

  • Bank Indonesia Kept Interest Rates Unchanged on Capital Outflow Risk

    Bank Indonesia Kept Interest Rates Unchanged on Capital Outflow Risk

    The central bank of Indonesia (Bank Indonesia) decided to leave its interest rate environment unchanged at the January 2017 policy meeting on Thursday (19/01). The benchmark seven-day reverse repurchase rate (BI 7-day RR Rate) was kept at 4.75 percent, while the Deposit Facility and Lending Facility rates were maintained at 4.00 percent and 5.50 percent, respectively. The decisions of Bank Indonesia are in line with analysts' forecasts. Due to risks of capital outflows Indonesia's central bank had few room to ease monetary policy.

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  • Bank Indonesia Keeps Interest Rate Unchanged at December Meeting

    Bank Indonesia Keeps Interest Rate Unchanged at December Meeting

    Bank Indonesia, the central bank of Indonesia, kept its benchmark interest rate unchanged at the December 2016 policy meeting, nearly a day after the US Federal Reserve decided to raise its key Fed Funds Rate by 25 basis points to the range 0.50 - 0.75 percent. Moves of both central banks were expected. Monetary tightening in the USA triggers capital outflows from emerging markets (the Indonesian rupiah depreciated around 0.70 percent against the US dollar on Thursday). Therefore, Bank Indonesia had little room to seek monetary easing.

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  • Bank of Indonesia: Assessing Impact of Sudden Rate Cut

    Bank of Indonesia: Assessing Impact of Sudden Rate Cut

    The Bank of Indonesia recently resorted to a sudden cut in interest rate (by 25 bps to 4.75 percent) at its 20th October 2016 meeting. This followed a 25 bps reduction in September and thus this is the sixth time this year that the Indonesian central bank has elected to loosen monetary policy.

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  • Bank Indonesia Kept 7-Day Reverse Repo Rate at 4.75% in November

    Bank Indonesia Keeps 7-Day Reverse Repo Rate at 4.75% in November

    In line with expectations Indonesia's central bank (Bank Indonesia) kept its benchmark reference rate - the BI 7-Day (Reverse) Repo Rate - at 4.75 percent at Thursday's policy meeting (17/11). This decision was made amid the high degree of uncertainty in global financial markets (triggered by the 2016 US presidential election) and stable domestic conditions (low inflation and an improving current account deficit). The high degree of volatility does cause major pressures on the rupiah and therefore Bank Indonesia will continue to stabilize exchange rates through intervention in markets.

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  • Bank Indonesia Cut Interest Rates Again in October 2016

    Bank Indonesia Cut Interest Rates Again in October 2016

    Bank Indonesia surprised markets. On Thursday (20/10) the central bank of Southeast Asia's largest economy cut its benchmark interest rate - the BI 7-day reverse repo rate - by 25 basis points to 4.75 percent. Meanwhile, both the deposit facility and lending facility were also cut by 25 basis points to 4.00 percent and 5.50 percent, respectively. Perhaps it was Bank Indonesia's present to Indonesian President Joko Widodo for the two-year anniversary of his government. A lower interest rate climate should encourage macroeconomic expansion.

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  • What Is Next For Indonesian Interest Rates?

    What Is Next For Indonesian Interest Rates?

    On September 22, 2016, the central bank of Indonesia (Bank Indonesia) decided to cut its BI seven-day repo rate from 5.25 percent to 5.00 percent, and this has changed parts of the long-term outlook for investors. Bank Indonesia also reduced its lending rate to 5.75 percent (from previous 5.50 percent), and the deposit rate to 4.50 percent (from previous 4.75 percent previously). This is significant because it shows that lending rates and interest rates have dropped to multi-year lows with the current policy changes.

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  • Currency Markets: Bank of Indonesia Guiding USD/IDR

    Currency Markets: Bank of Indonesia Guiding USD/IDR

    The central bank of Indonesia (Bank Indonesia) has made some important decisions under the current Governor Agus Martowardojo. Here, Bank Indonesia has been directed toward achieving the responsibility of making financial decisions that promote consumer price stability over the long-term. This has resulted in widespread gains in the rupiah against a basket of world currencies -- including the US dollar. But recent rate cuts now have the potential to reverse these broader trends.

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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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  • Bank Indonesia to Adopt 7-Day Reverse Repo Rate at August Policy Meeting

    Bank Indonesia to Adopt 7-Day Reverse Repo Rate at August Policy Meeting

    This week the central bank of Indonesia (Bank Indonesia) is set to adopt the seven-day reverse repurchase rate (reverse repo) as the nation's new benchmark monetary tool at the August policy meeting (18/19 August), thus replacing the existing BI rate that is considered too weak to have an immediate and significant impact on Indonesia's borrowing costs and market liquidity. Bank Indonesia Governor Agus Martowardojo informed that the central bank has been holding road shows to financial centers across the nation (and abroad) to provide detailed information about the new benchmark.

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  • Indonesia's Monetary & Fiscal Policies Require More Harmony

    Indonesia's Monetary & Fiscal Policies Require More Harmony

    At its latest monthly policy meeting the central bank of Indonesia (Bank Indonesia) left its interest rate regime unchanged with the benchmark BI rate at 6.50 percent (this month the bank is set to adopt the seven-day reverse repurchase rate - reverse repo - as the new benchmark rate). Bank Indonesia's decision to leave interest rates unchanged was a surprise move given that the nation's inflation is low, the rupiah is strengthening, but overall economic growth has remained sluggish. This context would actually justify a moderate interest rate cut of 25 basis points.

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