Emerging markets, such as Indonesia, have been feeling the impact of a recovering economy in the United States. Last month, the Federal Reserve announced that, if the economy of the USA continues its improving trend, it will end its quantitative easing program gradually in 2013 until a complete stop in 2014. As Indonesia is one of the emerging economies that benefited from the spillover effects of the Fed's monthly bond-buying program, the country now feels the negative impact of the possible stop to the program.

Read more ›

Today, three Indonesian companies will be listed on the Indonesia Stock Exchange (IDX). These companies are Victoria Investama (VICO), Multipolar Technology (MLPT), and Bank Mestika Dharma (BBMD). This year so far, 21 Indonesian companies have conducted their initial public offering (IPO). Eight others are still planning to conduct one in 2013. Indonesia's stock exchange has seen large capital outflows in the last month due to international concerns about a stop to the US quantitative easing program.

Read more ›

After the World Bank signaled slowing economic growth in Indonesia, American multinational financial services corporation Morgan Stanley also detects problems in Southeast Asia's largest economy. According to Jonathan Garner, chief Asia and emerging-market strategist for Morgan Stanley, Indonesia’s stock market is the most vulnerable stock market in Southeast Asia in terms of sudden capital outflows. Morgan Stanley downgraded Indonesia's equities to underweight from equal weight and labeled the country as "a relatively over-owned country".

Read more ›

The central bank of Indonesia (Bank Indonesia) decided today to raise its benchmark interest rate by 25 basis points to 6.0 percent. The decision was made amid concerns about the inflationary impact of a hike in subsidized fuel prices (planned this June) as well as increasing uncertainty in global financial markets as central banks' may scale back stimulus programs. The Indonesian rupiah has weakened considerably in 2013 and forms the worst performer in Asia after the Japanese yen among the 11 most-traded currencies tracked by Bloomberg.

Read more ›

Sri Rejeki Isman (Sritex), an integrated textile manufacturer, is offering 5.6 billion new shares (equivalent to 30 percent of its total stock equity) to the public through an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The company expects to reap about IDR 1.34 trillion (USD $136.7 million) in new funds through this IPO. The offering period is from 10 to 12 June 2013 and its listing debut is scheduled for Monday 17 June 2013. Underwriter for the IPO is Bahana Securities.

Read more ›

Yesterday (07/06), the main index of the Indonesia Stock Exchange (IHSG) fell by a total of 2.7 percent to close at 4,865.32 points. The size of this single day fall of Indonesia's IHSG has not been seen since November 2011 and illustrates waning confidence in Indonesia's economy. For eleven days in a row, foreign investors have been engaged in net selling as they have been concerned about ongoing uncertainty regarding the price hike of subsidized fuel, the continuing trade deficit as well as the steady fall of the IDR rupiah.

Read more ›

Cipaganti Citra Graha, an Indonesian transportation company, will offer 40 percent of its stock equity to the public through an initial public offering (IPO). The company releases 2 billion shares with a nominal value of IDR 100 per share. These 2 billion shares consist of 1.75 billion new shares as well as 250 million shares that are owned by its holding company Cipaganti Global Corporindo. The company, which will be listed on 9 July 2013, will reserve 40 million shares for the employee stock allocation (ESA).

Read more ›

In recent years, Astra International, one of Indonesia's largest diversified conglomerates, dominated the Indonesia Stock Exchange (IDX) in terms of market capitalization. However, it increasingly felt the competition of HM Sampoerna, Indonesia's largest tobacco company. Over the last five years, HM Sampoerna's market capitalization grew by a staggering 746.2 percent. It is also interesting to note that a  handful of Indonesian companies account for over one-third of market capitalization of Indonesia's stock exchange.

Read more ›

PT Nippon Indosari Corpindo Tbk is Indonesia’s largest producer of bread products and its the country's only bread producing company that is listed on the Indonesia Stock Exchange (IDX). The company has shown robust growth in recent years due to the increased consumption of bread products by Indonesia's expanding middle class. Nippon Indosari controls a 90 percent market share in Indonesia's mass production of bread products. Its Sari Roti line of bread is a well-known brand in Indonesia.

Read more ›

Market capitalization of the Indonesia Stock Exchange (IDX) has surpassed its psychological boundary of IDR 5,000 trillion (USD $512.82 billion) last week, supported by the new record high level position of the Indonesia Stock Index (IHSG) on Friday at 5,145.68 points. Up to 17 May 2013, the IHSG gained 18.41 percent this year, thus outperforming all other major stock indices in Asia except for the Philippines and Japan's Nikkei, which gained 41.64 percent this year amid an aggressive stimulus plan of the central bank of Japan.

Read more ›

In line with the volatile performance of global stocks, led by indices on Wall Street, the benchmark stock index of Indonesia (Jakarta Composite Index, or abbreviated IHSG) showed a volatile performance over the past week. US stocks mostly declined - except for the sharp rebound on Wednesday after Federal Reserve minutes signalled no higher US interest rates anytime soon - on concerns about the global economy (particularly the Eurozone), looming higher US interest rates, and the appreciating US dollar (hurting US exports).

Read more ›

It was a relief for investors to learn that the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) rebounded on Thursday (09/10) after having experienced a sharp decline on the previous day. The IHSG was supported by rising Asian stocks after indices on Wall Street had surged on Wednesday (08/10). Wall Street was up as minutes of the latest Federal Reserve meeting signalled that US interest rates will remain low 'for a while'. Another positive factor was that today’s appreciation of the Indonesian rupiah exchange rate.

Read more ›

The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) took another dive on Wednesday (08/10). The decline was not only caused by the negative influence of declining stock indices in the USA and Europe on the previous day, triggered by the downgraded global economic growth forecast released by the International Monetary Fund (IMF) but also because the market responded negatively to the voting result for the post of speaker of the People’s Consultative Assembly (or MPR).

Read more ›

Technically the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) had to rebound after sharp declines during the last couple of trading days making Indonesian stocks relatively cheap. The IHSG was also supported by rising stock indices in Japan and Hong Kong that rose on strong US jobs data (although other Asian markets fell due to concerns about sooner-than-expected US interest rate hikes. Meanwhile, the rupiah continued to depreciate as the market is concerned about the political situation in Indonesia.

Read more ›

Amid political uncertainty and a looming increase in US interest rates, Indonesian stocks and the rupiah exchange rate weakened considerably in the past week. Market participants are increasingly concerned about the situation in Indonesia’s parliament where a majority of political parties - named the Merah-Putih coalition (led by defeated presidential candidate Prabowo Subianto) - is expected to undermine president-elect Joko Widodo’s reform programs as well as the democratic foundations of the country.

Read more ›

Blue Bird, Indonesia’s largest taxi operator, plans to conduct its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) this month. The company offers 531.4 million shares, or 20 percent of its enlarged capital, to the public. However, the company is yet to determine the share price for the IPO. Based on a statement released on Friday (03/10), Blue Bird holds an offering from 24 to 28 October 2014. The company’s shares are set to be listed on the IDX on 3 November 2014. Blue Bird will also hold roadshows in the US and the UK.

Read more ›

Indonesian stocks plunged considerably on Thursday (02/10). The country’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) declined 2.73 percent to 5,000.81 points, the largest drop in almost six months. This poor performance was caused by both external and internal factors. Externally, various weak economic data from the USA and Europe as well as an appreciating yen impacted negatively on Asian stock indices. Internally, market participants responded negatively toward the inauguration of the new parliament.

Read more ›

Although Indonesia’s September 2014 inflation (0.27 percent m/m) and appreciating rupiah exchange rate had a positive impact on the performance of Indonesia’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) on Wednesday (01/10), its gain was limited by declining indices on Wall Street on the previous day as well as Indonesia’s August trade deficit (USD $318.1 million), which resulted in foreign net selling of worth IDR 388 billion of Indonesian stocks. The IHSG climbed 0.06 percent to 5,140.91 points.

Read more ›

The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rose 0.18 percent to 5,142.01 points on Monday (29/09) despite the sharp depreciation of the Indonesian rupiah exchange rate. Possibly market participants took advantage of relatively cheap blue chip stocks after the 1.3 percent drop on Friday (26/09) caused by negative market sentiments brought about by the parliament’s passing of a bill which abolishes direct voting of regional leaders. Foreign investors recorded net selling of IDR 542.4 billion.

Read more ›

In line with the trend on other Asian stock indices, the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) fell on Monday (22/09) amid profit taking after three days of gains. Not even the appreciating rupiah exchange rate and net buying of foreign investors (IDR 26.6 billion) were able to push Indonesia’s index into the green zone. The IHSG declined 0.15 percent to 5,219.80 points. All sectors on the Indonesia Stock Exchange (IDX) fell except for the consumer goods and finance sectors.

Read more ›