Below is a list with tagged columns and company profiles.

Today's Headlines BI Rate

  • 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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  • US Dollar Rises on Fed minutes and US Employment Data; Rupiah Down

    On Thursday (09/01), the US dollar appreciated after the release of the minutes of the FOMC’s December meeting as well as positive US employment data. The minutes show that Federal Reserve policy makers are confident that the economy is strong enough to start scaling back its quantitative easing program, although the minutes do not provide a clear schedule about the tapering. Yesterday (08/01), it was also released that private-sector payrolls increased by 238,000 positions in December 2013.

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  • Car Sales in Indonesia Expected to Rise in 2014 amid Political Elections

    Supported by legislative and presidential elections, car sales in Indonesia are expected to grow between five and ten percent to 1.30 million total vehicles in 2014. These elections are estimated to boost the domestic money flow due to increased economic activity in Southeast Asia's largest economy. Consumption goods such as cars and food & beverage products are expected to feel the impact of this development and may offset the negative impact brought on by the weak rupiah, high inflation and the high interest rate environment.

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  • Indonesia's December 2013 Inflation at 0.55% and Full-Year 2013 at 8.38%

    On Thursday (02/01), Statistics Indonesia (BPS) released the December 2013 inflation figure of Indonesia as well as the calender inflation rate for full-year 2013. Higher food prices and house prices were the main contributors to the 0.55 percent inflation rate in December 2013. Seasonal celebrations, like Christmas and New Year, always translate into higher inflationary pressures in Southeast Asia's largest economy. Higher fuel prices were the main contributor to the 8.38 percent inflation rate in full-year 2013.

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  • Jakarta Composite Index Expected to Show Better Performance in 2014

    Various analysts believe that the benchmark stock index of Indonesia (the Jakarta Composite Index or IHSG) can make a good jump in 2014 to the level of between 5,000 to 5,300 points (from 4,182 currently) despite the looming end of the Federal Reserve's quantitative easing program (QE3) which may result in temporary capital outflow from Indonesia's capital markets. The analysts believe that positive internal developments will provide solid support for the IHSG. These developments include the trade balance, rupiah exchange rate and general elections.

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  • World Bank: Indonesia Quarterly Report "Slower Growth; High Risks"

    The World Bank released the December edition of its Indonesia economic quarterly report. The title of the report “Slower Growth; High Risks” leaves little to the imagination. The World Bank expects Indonesia’s economic growth to slow to 5.3 percent in 2014 amid external shocks, most notably the Federal Reserve 'tapering'. The report states that “while policymakers in Indonesia have taken steps to encourage near-term macroeconomic stability, further structural reforms are needed to support export performance and encourage long-term faster growth.”

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  • Indonesia Investments' Newsletter of 15 December 2013 Released

    On Sunday (15/12), Indonesia Investments released the latest edition of its newsletter. Our weekly newsletter contains the most important news stories on the subject of Indonesia's economy, politics and social issues that were reported in the last seven days. This week's edition includes analyses of Indonesia's benchmark interest rate, current account deficit and geothermal energy development. Visit our Join Us section if you want to sign up for our free newsletter. Our latest newsletter can be viewed here.

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  • Bank Indonesia: Indonesia's Interest Rate (BI Rate) Stays at 7.50%

    In Bank Indonesia's Board of Governors' meeting - held on Thursday (12/12) - it was decided to keep the country's benchmark interest rate (BI rate) at 7.50 percent. Executive Director of Bank Indonesia's Communication Department Difi A. Johansyah said that the current rate of 7.50 percent is in line with the institution's inflation target of 4.5 percent (plus or minus one percent). The lending facility and deposite facility (Fasbi) rates are also maintained at 7.5 percent and 5.75 percent respectively.

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  • Rupiah Exchange Rate: Continued Depreciation amid Uncertainty

    The Indonesia rupiah exchange rate continued its depreciation on Wednesday (04/12). The central bank's Jakarta Interbank Spot Dollar Rate fell 1.09 percent to IDR 11,960 per US dollar after absorbing the impact of the currency's weak performance on yesterday's spot market. On Tuesday (03/12), local Indonesian companies were buying US dollars at a more attractive exchange rate after the currency had appreciated previously, thus placing serious downward pressure on the currency of Southeast Asia's largest economy.

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  • Which Sectors are Vulnerable to Indonesia's Slowing Lending Growth?

    Bank Indonesia (Indonesia's central bank) has expressed that it will support slowing credit growth in the country's banking sector next year in order to foster a more stable financial environment amid a complex external and internal context. In recent years, credit growth in Indonesia has grown over 20 percent annually, while in 2013 it is expected to slow to between 18 and 20 percent amid a tighter policy regime. In 2014, Bank Indonesia targets credit growth between 15 to 17 percent. As a result banks will be more cautious in their lending approach.

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Latest Columns BI Rate

  • Small Gain for the IHSG after the Chinese New Year Celebrations

    It seems that the Indonesia Stock Exchange (IHSG) was blessed by the Chinese new year celebrations as it closed higher on Monday than on the previous trading day. This is a better performance than usual on the days around the new year. If we take a look at the period 2008-2012, the IHSG declined three times on the day before new year, and twice on the day after. This year, the IHSG declined on the day before by -0.26% and increased by 0.27 on the day after.

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