Below is a list with tagged columns and company profiles.

Today's Headlines China

  • Can Bank Indonesia’s US Dollar Purchase Restriction Support the Rupiah?

    Can Bank Indonesia’s US Dollar Purchase Restriction Support the Rupiah?

    Last week, Indonesia’s central bank (Bank Indonesia) refrained from adjusting its relatively high interest rate regime as it is committed to support the ailing rupiah and combat high inflation. Another decision that was revealed by Bank Indonesia is the soon-to-be-introduced regulation that limits total (non-collateral) monthly US dollar purchases to USD $25,000 (down from USD $100,000 previously). This regulation will be implemented in a move to thwart speculators that want to take advantage of the weak and volatile rupiah.

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  • Global Markets on Fire: What Happens to the Rupiah & Indonesian Stocks?

    Global Markets on Fire: What Happens to the Rupiah & Indonesian Stocks?

    The Indonesian rupiah continues to flirt with a 17-year low as the currency is getting closer and closer to the IDR 14,000 per US dollar level. Meanwhile, Indonesian stocks took another blow as the country’s benchmark stock index (Jakarta Composite Index) fell 2.39 percent on Friday (21/08). Such turmoil is not only confined to Indonesia but was felt across Asia and the West. Markets were plagued by selloffs in energy shares (due to falling oil prices) and uncertainty about the timing of higher US interest rates.

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  • Indonesian Stocks & Rupiah Fall ahead of FOMC Minutes & China Volatility

    Indonesian Stocks & Rupiah: Down ahead of FOMC Minutes & China Volatility

    Indonesian stocks and the rupiah continued to weaken on Wednesday (19/08) in line with most other Asian stocks and currencies. Investors are cautious ahead of the release of the minutes of the Federal Reserve’s latest FOMC meeting, hence moving into safe haven assets. The minutes are to be released early Thursday morning local Indonesian time. Investors will be searching for signs informing about a possible Fed Fund Rate hike in September. If there are such signs, emerging market assets will be under heavy pressure tomorrow.

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  • Bank Indonesia Keeps Interest Rates Unchanged on Global Uncertainty

    Bank Indonesia Keeps Interest Rates Unchanged on Global Uncertainty

    For the sixth straight month, the central bank of Indonesia (Bank Indonesia) left its interest rate regime unchanged at Tuesday’s Board of Governor’s meeting (18/08) as it aims to guard the rupiah against severe volatility (which occurred after China’s yuan was allowed to devalue, while markets are still preparing for monetary tightening in the USA) and tries to combat inflation.

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  • Stock Market & Rupiah Update Indonesia: Impact of China’s Yuan

    Stock Market & Rupiah Update Indonesia: Impact of China’s Yuan

    Today (14/08) the central bank of China let the yuan appreciate 0.05 percent against the US dollar, effectively ending three consecutive days of devaluation. The People's Bank of China (PBoC) also pledged to safeguard a stable yuan after the sharp devaluation had triggered significant volatility on international financial markets. For example, Indonesian assets (stocks and the rupiah) tumbled severely on Tuesday and Wednesday amid yuan devaluation (and looming higher interest rates in the USA).

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  • China’s Yuan Devaluation: Indonesian Stocks & Rupiah Rebound

    China’s Yuan Devaluation: Indonesian Stocks & Rupiah Rebound

    For the third straight day China allowed its currency to weaken against the US dollar. On Thursday (13/08) the yuan depreciated 0.7 percent against the greenback, signalling that China’s central bank may let the yuan weaken further in a controlled manner. Yesterday, just before trading closed, it actually intervened to support the currency as the yuan depreciated nearly two percent (the daily limit). The move of China to devalue the yuan is a step toward liberalization and also boosts the country’s sluggish export performance.

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  • Devaluation China’s Yuan Impacts on Indonesian Stocks & Rupiah

    Devaluation China’s Yuan Impacts on Indonesian Stocks & Rupiah

    The fall of Indonesian stocks and the rupiah on Wednesday (12/08) is much more severe than had previously been expected. By 11:14 am local Jakarta time, the benchmark Jakarta Composite Index had fallen 3.12 percent to 4,478.56 points, while the rupiah had depreciated 1.75 percent to IDR 13,845 per US dollar according to the Bloomberg Dollar Index. Across Asia, emerging markets are badly affected (for a second straight day) by China’s decision to devalue its yuan. The yuan is now at its weakest level since October 2012.

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  • Indonesian Stocks & Rupiah Down on China’s Yuan Devaluation

    Indonesian Stocks & Rupiah Down on China’s Yuan Devaluation

    Indonesian stocks are experiencing a remarkable fall on Tuesday (11/08). In the first trading session, the benchmark stock index (Jakarta Composite Index) plunged 2.15 percent to 4,646.95, its lowest level since early March 2014 and leading declines among Southeast Asian stock indices. Stocks in Asia have been hit by China’s decision to allow its currency to weaken against the US dollar (the yuan fell 1.6 percent against the US dollar after the move dragging down other Asian currencies including the Indonesian rupiah).

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  • Why is Indonesia’s Rupiah Weakening? Global & Domestic Factors

    The Indonesian rupiah continues to depreciate on Tuesday (11/08). By 11:16 am local Jakarta time, the rupiah had depreciated 0.14 percent to IDR 13,570 per US dollar according to the Bloomberg Dollar Index. Indonesia’s currency has been touching 17-year lows due to bullish US dollar momentum ahead of looming higher US interest rates. Today, the US dollar received additional strength as China allowed its currency to weaken to a three-year low, dragging down other currencies in the Asian region.

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  • Indonesia Stock Market & Rupiah Update: Influence from China & USA

    Indonesia Stock Market & Rupiah Update: Influence from China & USA

    Stock markets in Asia are mixed on Monday (10/08) with Indonesian stocks heading downwards. In the first trading session, Indonesia’s benchmark stock market (Jakarta Composite Index) fell 0.99 percent to 4,723.19 points on weak trade data from China and positive labor data from the USA. Meanwhile, Indonesia’s rupiah is moving sideways. At 13:12 pm local Jakarta time, the rupiah was still at IDR 13,541 per US dollar according to the Bloomberg Dollar Index, unchanged since the opening this morning.

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Latest Columns China

  • Financial Market Update Indonesia: What Happened Last Week?

    Financial Market Update Indonesia: What Happened Last Week?

    Many things happened this week. A devastating terror attack in Nice (France) killed at least 84 people, while - at the time of writing - a coup attempt occurred in Turkey (that seems to have failed). However, these events have little impact on the performance of global stocks and currencies (with the obvious exception of the Turkish lira). Wall Street touched record highs, while Indonesian stocks rose to a 13-month high and the Indonesian rupiah strengthened to a four-month high. Lets take a closer look at the performance of these markets over the past week.

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  • Indonesian Companies in Focus: Steel Pipe Industry of Indonesia

    Indonesian Companies in Focus: Steel Pipe Industry of Indonesia

    Steel pipe and tube manufacturer Steel Pipe Industry of Indonesia (Spindo), which has the largest steel pipe production capacity among manufacturers in Indonesia, is expected to show solid corporate earnings in the period ahead as the company bought raw materials for its production process when the hot-rolled coil (HRC) price was near its lowest at USD $265 per ton. Investa Saran Mandiri expects that Spindo's earnings will improve markedly starting from the second quarter of 2016 as the HRC price has risen to USD $485 per ton in May 2016.

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  • PBOC Expects GDP Increase, In Spite Of Export Losses

    PBOC Expects GDP Increase, In Spite Of Export Losses

    When we are looking at economic forecasts for potential growth prospects in Indonesia, it makes sense to have an idea of what is happening in the peripheral regions. China is still used as a firm indicator of where we are headed with emerging markets and here we will look at some of the reasons why the People's Bank of China's (PBOC) is still expecting growth even if potentially negative factors occur.

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  • Steel Price Rises but China and Other Steel Producing Nations Divided

    Steel Price Rises but China and Other Steel Producing Nations Divided

    The price of steel has surged 20 percent to USD $365 per ton in April 2016 from USD $305 per ton at the start of the year. The primary reason for the higher steel price is China's plan to curtail the country's installed steel production capacity by a further 150 million tons over the next five years. In recent years the steel price has dropped significantly due to the global oversupply, mainly originating from the chronic steel oversupply in China where domestic demand declined amid the nation's economic slowdown.

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  • Expansion Alibaba to Indonesia to Cause Rising Trade Deficit with China?

    Expansion Alibaba to Indonesia to Cause Rising Trade Deficit with China?

    The USD $1 billion acquisition of Southeast Asia-based e-commerce platform Lazada Group SA by China's e-commerce giant Alibaba Group Holding Ltd may give rise to a larger flow of Chinese products into Indonesia. Lazada is an e-commerce platform that operates in Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Southeast Asia is an interesting market for Alibaba as only 3 percent of retail sales are conducted online in this region, implying huge growth opportunities. Meanwhile, Alibaba has been eager to expand abroad as growth in China has been slowing.

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  • International Relations Indonesia-China: Illegal Fishing Case

    International Relations Indonesia-China: Illegal Fishing Case

    Indonesian Minister of Maritime and Fisheries Susi Pudjiastuti said Indonesia could raise the (illegal) fishing dispute between Indonesia and China - that occurred near the Natuna Islands in the South China Sea over the weekend - at the International Tribunal for the Law of the Sea if China's authorities fail to respect Indonesia’s sovereignty over its sea territory. Last Saturday (19/03) a Chinese ship (Kway Fey 10078) was spotted fishing illegally within Indonesia's Exclusive Economic Zone in the South China Sea. Its crew was arrested and ship confiscated. However, two armed Chinese coast guard ships arrived to intervene.

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  • International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

    The International Monetary Fund (IMF) expects Indonesia's economy to expand 4.9 percent year-on-year (y/y) in 2016, slightly up from a 4.8 percentage point (y/y) growth of gross domestic product (GDP) in 2015. On Tuesday (15/03) Luis Breuer, IMF Mission Chief for Indonesia, said the Washington-based lender projects limited growth (+0.1 percent) of Indonesia's private consumption this year. Regarding growth of investment and government spending in 2016, the IMF holds a more positive view. On the same day, the World Bank cut its forecast for Indonesia's 2016 GDP growth by 0.2 percent to 5.1 percent.

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  • Business Update Indonesia: BKPM Wants Desk for Chinese Investors

    Business Update Indonesia: BKPM Wants Desk for Chinese Investors

    In order to improve communication and avoid language barriers, the Indonesia Investment Coordinating Board (BKPM) plans to open a special service desk for Chinese investors. BKPM, the investment services agency of the Indonesian government, sees language barriers between Chinese investors and Indonesians as a major obstacle; one that blocks foreign direct investment from China into Indonesia. The new desk, specifically for investment from China or Hong Kong, should improve communication hence improving realization of China's investment plans.

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  • Snapshot of the Indonesian Economy: Risks, Challenges & Development

    Snapshot of the Indonesian Economy: Risks, Challenges & Development

    Tomorrow (05/02), Statistics Indonesia is scheduled to release Indonesia's official full-year 2015 economic growth figure. Nearly all analysts expect to see a figure that reflects the continuation of slowing economic growth. Southeast Asia's largest economy expanded 5.0 percent in 2014 and this is expected to have eased further to 4.7 percent or 4.8 percent in 2015 on the back of (interrelated) sluggish global growth, low commodity prices, and weak export performance. Domestically, Indonesia has or had to cope with high interest rates and inflation (hence curtailing people's purchasing power and consumption as well as business expansion).

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  • Yuan Becomes Reserve Currency But Impact Will Be Limited

    Yuan Becomes Reserve Currency But Impact Will Be Limited

    Broad activity in the financial markets has been limited over the last few weeks, as holiday-thinned trading conditions have slowed volatility in most of the commonly watched assets. A large part of the reasoning behind this can be seen in the fact that market moving news headlines have not been seen and most investors are still looking for ways to identify the most likely direction to follow in the equities space.

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