Below is a list with tagged columns and company profiles.

Today's Headlines China

  • Stock Market Update Indonesia: What Makes Markets Move Today?

    Most stocks in Asia were in the red zone on Wednesday morning (21/06) as oil entered bear territory after prices continued to tumble (with Brent at seven-month lows) due to rising oil output in Libya and Nigeria. Meanwhile, Chinese shares seem to enjoy limited support only from the decision of US index provider MSCI to add China's mainland stocks to one of its key benchmarks.

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  • Commodity Watch Indonesia: Coal Price Expected to Rise

    The coal price is expected to rise in the remainder of this year as China seems eager to limit domestic coal output, while global coal demand is predicted to rise in the second half of 2017. After a steep decline in May, coal prices have been recovering in June. So far this month, coal prices rallied around 10 percent to slightly above USD $80 per ton (Newcastle index, July contracts).

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  • How Many Islands Does Indonesia Have? Government to Count

    Indonesia is known as the world's largest archipelago. However, local authorities do not exactly know how many islands Indonesia actually has. Back in 1996 the central government made a rough estimate of 17,500. However, rising concerns about illegal fishery and radical Islam as well as growth of protectionism (the battle for natural resources) has made the Indonesian government eager to turn the rough estimate into precise knowledge. However, this will not be an easy undertaking.

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  • Mining in Indonesia: Coal Price to Remain Stable on China Policies

    Despite seeing a supply surplus in Asia, coal prices are expected to remain stable in the foreseeable future supported by expectations of Chinese intervention into domestic coal production. China is the world's largest producer and consumer of coal and therefore the main determinant of the coal price. On Friday (19/05), the Newcastle coal index (May 2017 contracts) rose 0.27 percent to USD $74.25 per ton.

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  • Footwear Imports into Indonesia Surge High in Q1-2017

    Players in Indonesia's footwear industry are concerned about the sharp growth of imports of footwear (shoe) products into Indonesia, by far outpacing growth of footwear exports. Data released by the Indonesian Footwear Association (Aprisindo) show footwear imports into Indonesia rose 17 percent year-on-year (y/y) in 2016, while over the past two years exports of footwear products were recorded in the range of 3 - 4 percent (y/y).

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  • Stock Market Update: Indonesia's Jakarta Composite Hits New Record

    Indonesian stocks continue to expand into record high territory. On Wednesday (05/04) Indonesia's benchmark Jakarta Composite Index gained 0.45 percent to close at 5,676.98 points, a fresh new record high position. Indonesia's main stock index is currently "hot" due to several internal and external factors. However, a new report released by Morgan Stanley may make investors a bit cautious as valuations for Indonesian stocks have been rising sharply recently.

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  • Deindustrialization in Indonesia's Ceramic Industry due to ACFTA?

    Elisa Sinaga, Chairman of the Indonesian Ceramic Industry Association (ASAKI), is concerned about the zero percent import duty policy (applied per 2018) for Chinese ceramics that are shipped into Indonesia. This policy could lead to massive ceramic imports from China and encourage the deindustrialization in Indonesia's ceramic sector.

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  • Trump's Trade Policies Positive for Indonesia's Footwear Industry?

    Indonesia's exports of footwear to the United States (USA) are expected to reach the value of USD $1.5 billion in 2017, up 12 percent year-on-year (y/y) from USD $1.34 billion last year. This increase is expected to come on the back of US President Donald Trump's eagerness to limit imports from China by introducing higher tariffs. This policy should now open up opportunities for Indonesian footwear exporters.

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  • After Yellen Speech Markets Are Preparing for March Rate Hike

    After Federal Reserve Chair Janet Yellen's speech late last week, markets are increasingly expecting to see a US interest rate hike this month. In her speech in Chicago on Friday (03/03), Yellen said the Fed will adjust its monetary policy (specifically the fed funds rate) in case US employment and inflation continue to evolve in line with the Fed's expectations. The next Federal Open Market Committee (FOMC) meeting is scheduled for 14-15 March 2017 and therefore it is believed only disastrous US labor market data can block an interest rate hike this month.

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  • IMF Upbeat on Indonesia's Growing Economy, Consumption & Reforms

    The International Monetary Fund (IMF) is optimistic about economic growth of Indonesia in the foreseeable future. In its latest report the Washington-based institution says Indonesia's solid economic policies and increased household consumption support strong growth. The stronger rupiah and low inflation have caused people's purchasing power to strengthen. This is a major positive boost for the economy as household consumption accounts for more than 55 percent of total economic growth in Southeast Asia's largest economy.

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Latest Columns China

  • Jakarta Composite Index: What is Next for Indonesian Stocks?

    Stock markets in Indonesia have been particularly volatile in recent weeks, and this has left many investors wondering about whether or not the rally that started last October is still viable and ready to continue. Last month, the MSCI Indonesia Index (which trades under the stock symbol EIDO) took a large drop - from well above the 6,500 mark to below 6,000. From a percentage perspective, a move like this can generate significant losses for those that bought into Indonesian stocks while they were still at elevated levels.

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  • Domestic & Foreign Investment in Indonesia on the Rise in Q1-2015

    Investment realization in Indonesia in the first quarter of 2015 totaled IDR 124.6 trillion (USD $9.7 billion), up 16.9 percent from the same quarter last year. Domestic direct investment climbed 22.8 percent (y/y) to IDR 42.5 trillion, while foreign direct investment (FDI) rose 14 percent (y/y) to IDR 82.1 trillion in Q1-2015. These data, released by the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/04), brought some positivity in Indonesia after listed companies’ weak Q1-2015 financial results led to concern and capital outflow.

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  • Rubber Industry Indonesia: Challenges and Opportunities

    In late 2014 Indonesian rubber producers and exporters were not amused when the government of China decided to approve a new standard for compound rubber imports. The permitted crude rubber content in imported compound rubber was cut from 95-99.5 percent to 88 percent, meaning that compound rubber imports into China became subject to a 20 percent import duty (the same tariff as natural rubber import duties). China’s new policy is a blow to its rubber suppliers, which include Indonesia, Thailand, Malaysia, and Vietnam.

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  • Analysis Performance of the Indonesian Rupiah Exchange Rate

    The Indonesian rupiah exchange rate continued to depreciate on Monday (02/03). According to the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.30 percent to IDR 12,970 per US dollar, a six-year low. Apart from general bullish US dollar momentum in recent months (amid monetary tightening in the USA), the rupiah weakened due to Bank Indonesia’s signals that it tolerates a weaker currency in a move to boost exports (limiting the country’s current account deficit), and due to China’s interest rates cut.

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  • Rupiah Exchange Rate Indonesia Update: Why the Currency Gained Today

    Positive macroeconomic data of Indonesia - involving the significantly lower trade deficit in 2014 and easing inflation - had a good impact on the Indonesia rupiah exchange rate on Tuesday (03/02) although prior to closing the currency somewhat slid after Australia's central bank cut its interest rates causing speculation of further policy easing around the Asia Pacific region in a move to support sluggish growth and avert deflation. Most emerging Asian currencies strengthened on Tuesday against the US dollar on stronger risk appetite.

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  • Indonesian Stocks Hit Record High on ECB & Chinese Stimulus

    Indonesian stocks hit a record high on Thursday (22/01). Most emerging Asian stocks and currencies strengthened on increased speculation that the European Central Bank (ECB) is to launch a massive bond-buying program (which was confirmed later on the day after Asian markets had closed), a move aimed at boosting inflation in the Eurozone and which puts pressure on euro-denominated assets. The euro had depreciated 1.67 percent against the US dollar by 11:20 ET on Thursday based on Bloomberg data.

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  • IMF Downgrades Global Economic Growth, China at 24-Year Low

    There was few good news from a global economic perspective as the International Monetary Fund (IMF) sharply cut its outlook for global economic growth in the next two years. According to the IMF, global economic growth will only reach 3.5 percent (y/y) in 2015 and 3.7 percent in 2016 due to poorer prospects in China, Russia, the Eurozone, and Japan. Economic growth of China (the world’s second-largest economy) fell to a 24-year low at 7.4 percent year-on-year (y/y) in 2014, below the government target of 7.5 percent (y/y).

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  • Indonesian Rupiah Exchange Rate Rebounds from Six-Year Low

    Contrary to the previous trading day, most emerging Asian currencies strengthened against the US dollar on Tuesday (09/12) supported by the yen’s advance as falling oil prices dented risk appetite. Based on the Bloomberg Dollar Index, Indonesia’s rupiah appreciated 0.47 percent to IDR 12,331 per US dollar today. Despite local firms’ increased US dollar demand to settle debt before the year-end, market participants were happy to learn that Indonesia’s central bank is active in the foreign exchange market to guard the currency.

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  • Stock Market & Rupiah Update Indonesia: Bad Start of the Week

    Despite positive stock indices in the USA and Europe at the end of last week as well as mostly positive indices in Asia today (08/12), the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) fell due to investors’ appetite for profit taking. Several matters made investors decide to sell their Indonesia shares, including the World Bank’s downward revision of Indonesia’s economic growth in 2015, Japan’s recession, weakening Chinese exports, and the sharply depreciating rupiah exchange rate.

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  • Rubber Update: Indonesia, Thailand & Malaysia Make New Policies

    Thailand, Indonesia and Malaysia, the world’s three largest rubber producing countries (accounting for about 70 percent of total global natural rubber output), have agreed to avoid excessive natural rubber supply on the international market by limiting their rubber exports. The countries also agree to curb new rubber plantation development as well as to spur domestic rubber consumption in each country. This statement was read out by Douglas Uggah Embas, Plantation Industries Minister of Malaysia, in Kuala Lumpur today (20/11).

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