Below is a list with tagged columns and company profiles.

Today's Headlines BI Rate

  • Bank Indonesia Cuts Key Interest Rate (BI Rate) to 6.50% in June

    Bank Indonesia Cuts Key Interest Rate (BI Rate) to 6.50% in June

    The central bank of Indonesia (Bank Indonesia) cut its key interest rate (BI rate) by 0.25 percentage point to 6.50 percent at Thursday's policy meeting (16/06). Although the central bank had stated at its preceding policy meeting that there remained room for monetary easing, today's move was a surprise that few analysts saw coming. The 7-day reverse repurchase rate, which is set to become the central bank's new benchmark rate on 19 August, was also cut by 25 basis points (to 5.25 percent) at today's policy meeting.

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  • Indonesia Investments' Newsletter of 24 April 2016 Released

    Indonesia Investments' Newsletter of 24 April 2016 Released

    On 24 April 2016, 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 over the last seven days. Most of the topics involve political and economic matters such as Joko Widodo's visit to Europe, the monetary policy of Bank Indonesia, Indonesia's Gini ratio, the palm oil and coal sectors, foreign ownership of property in Indonesia, the problems surrounding infrastructure spending in Indonesia, and more.

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  • Bank Indonesia Keeps Key BI Rate at 6.75% in April Policy Meeting

    Bank Indonesia Keeps Key BI Rate at 6.75% in April Policy Meeting

    The central bank of Indonesia (Bank Indonesia) kept its key interest rate (BI rate) at 6.75 percent at the April policy meeting. This decision was in line with expectations. During the three policy meetings conducted in the January-March 2016 period Bank Indonesia had already cut its BI rate by a combined 75 basis points as inflation and the current account deficit are under control, while the Indonesian rupiah has been strengthening against the US dollar since the start of 2016. Last week, Bank Indonesia announced it will adopt the seven-day reverse repurchase rate (reverse repo) to replace the existing BI rate as the bank's key monetary tool.

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  • Credit Growth in Indonesia Grows at Slowest Pace in 6 Years

    Credit Growth in Indonesia Grows at Slowest Pace in 6 Years

    Credit disbursement in Indonesia's banking sector grew at its slowest pace in six years in the first quarter of 2016. This weak performance is attributed to the slowdown in the country's real sector. Muliaman D. Hadad, Chairman of Indonesia's Financial Services Authority (OJK), said credit expansion grew 10 percent (y/y) to IDR 4,084 billion (approx. USD $300 billion) in Q1-2016. However, Hadad remains optimistic that credit expansion will accelerate in the second half of the year in line with forecasts for accelerating GDP growth. This will be a better context for businesses to expand.

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  • Bank Indonesia to Adopt 7-Day Reverse Repurchase Rate as Key Monetary Tool

    Bank Indonesia to Adopt 7-Day Reverse Repurchase Rate as Key Monetary Tool

    The central bank of Indonesia (Bank Indonesia) plans to adopt a new tool of monetary policy that is to replace the existing benchmark interest rate (BI rate). On Friday (15/04), Bank Indonesia will announce and elaborate on the new policy. Earlier, Indonesia's central bank said it was studying the implementation of a seven-day reverse repurchase rate (reverse repo) as the nation's new benchmark that is to influence borrowing costs and market liquidity more effectively. The new policy would mean Bank Indonesia sells securities with an agreement to buy them back within a seven-day period.

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  • Bank Indonesia Positive about Banking Sector in 2016, Fitch Doubts

    Bank Indonesia Positive about Banking Sector in 2016, Fitch Doubts

    The banking sector of Indonesia is expected to rebound in 2016 due to the lower primary reserve requirement ratio for rupiah deposits (6.5 percent), lower cost of funds as well as operational costs, rising credit volume (due to the lower interest rate environment) and improving purchasing power. The banking sector is also expected to feel the positive impact of the stimulus packages unveiled by the Indonesian government aimed at strengthening domestic businesses and improve the investment climate. And lastly, banks are to benefit from the government's push for infrastructure development.

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  • Fitch Ratings & Gaikindo Expect Indonesia's Car Sales to Rebound

    Fitch Ratings & Gaikindo Expect Indonesia's Car Sales to Rebound

    Domestic car sales in Indonesia are expected to rebound in the second half of 2016 in line with Indonesia's improving macro-economy. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), is optimistic that the small drop in Indonesia's February car sales is a sign that the sales decline is stabilizing. In February 2016 a total of 88,250 cars were sold in Indonesia, down 0.6 percent (y/y) from car sales in the same month one year earlier. Fitch Ratings also expects Indonesian car sales to rebound this year.

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  • Bank Indonesia's Rate Cut Boosts Optimism for Economic Growth

    Bank Indonesia's Rate Cut Boosts Optimism for Economic Growth

    In the first three monthly policy meetings this year (January-March) the central bank of Indonesia (Bank Indonesia) cut borrowing costs by a total of 75 basis points. Indonesia's benchmark interest rate (BI rate) was cut from 7.50 percent at the year-start to 6.75 percent at Thursday's Board of Governors' meeting. The overnight deposit facility rate and lending facility rate were also cut by 75 basis points, each, in the first three months. The lower interest rate environment in Indonesia signals that the financial fundamentals are strong. This is partly reason behind strong inflows of foreign capital into Southeast Asia's largest economy.

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  • Indonesian Stocks & Rupiah Expected to Strengthen Sharply Today

    Indonesian Stocks & Rupiah Expected to Strengthen Sharply Today

    Stock markets in Asia as well as Asian emerging market currencies should perform well today after the US Federal Reserve left rates unchanged at its March policy meeting. Moreover, the central bank of the world's largest economy stated that it expects fewer rate hikes in the coming months (dovish outlook) as economic recovery of the USA is still fragile amid slower global growth and turmoil in world markets linked to low oil price. As a result risk sentiment improved sharply, while the US dollar suffered losses.

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  • Indonesian Rupiah: King of Emerging Market Currencies in 2016?

    Indonesian Rupiah: King of Emerging Market Currencies in 2016?

    The Indonesian rupiah continues to appreciate sharply. By 13:15 pm local Jakarta time on Friday (04/03), Indonesia's currency had appreciated 0.96 percent to IDR 13,105 per US dollar (Bloomberg Dollar Index), its strongest level since May 2015. Meanwhile, Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.76 percent to IDR 13,159 per US dollar. What explains this strong performance of the rupiah?

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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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