Below is a list with tagged columns and company profiles.

Today's Headlines Macroeconomy

  • Current Account & Balance of Payments of Indonesia Improved in 2014

    Current Account & Balance of Payments of Indonesia Improved in 2014

    The central bank of Indonesia (Bank Indonesia) announced on Friday (13/02) that Indonesia’s current account deficit - the broadest measure of trade in goods and services - improved to 2.81 percent of gross domestic product (GDP), or USD $6.2 billion, in the fourth quarter of 2014 (from a revised 2.99 percent of GDP in the preceding quarter). The full-year 2014 deficit amounted to USD $26.2 billion, equivalent to 2.95 percent of GDP from a (revised) deficit of USD $29.1 billion (3.18 percent of GDP) in 2013.

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  • IMF & Moody’s Outlook on the Indonesian and World Economy

    IMF & Moody’s Outlook on the Indonesian and World Economy

    Benedict Bingham, Senior Resident Representative for Indonesia at the International Monetary Fund (IMF), expects that the central bank of Indonesia (Bank Indonesia) will remain committed to the tighter monetary policy in a bid to safeguard the country’s fiscal fundamentals amid external pressures. Apart from sluggish global economic growth, the looming interest rate hike in the USA (later this year) is expected to rock Indonesia as it will trigger capital outflows from emerging markets.

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  • Economic Growth of Indonesia Hits Five-Year Low at 5.02% in 2014

    Economic Growth of Indonesia Hits Five-Year Low at 5.02% in 2014

    The economy of Indonesia expanded 5.02 percent year-on-year (y/y) to IDR 8,354 trillion (USD $664 billion) in 2014, the nation’s slowest annual growth pace since 2009, according to the latest data from Statistics Indonesia (BPS). As such, GDP growth failed to achieve the central government’s 5.5 percentage point growth target that was set in the 2014 State Budget. Indonesia’s economic growth has been slowing since 2011 when it still posted a 6.5 percentage point growth rate (y/y). However, growth is expected to rebound from here.

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  • Macroeconomy Indonesia: Inflation, Trade Balance and Manufacturing

    Macroeconomy Indonesia: Inflation, Trade Balance and Manufacturing

    Indonesia’s inflation eased significantly in January 2015 to 6.96 percent year-on-year (y/y) from 8.36 percent (y/y) in December 2014 as the government’s January fuel price cut translated into lower transportation costs across Southeast Asia’s largest economy. In January, the Joko Widodo administration cut fuel subsidy spending and moved a step closer to a full market-based price mechanism for low-octane gasoline and diesel. As a result - amid low global oil prices - prices of diesel and gasoline fell by an average of 14 percent.

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  • Indonesian Authorities Revise Economic Assumptions in 2015 Budget

    Indonesian Authorities Agree on Revised Economic Assumptions in 2015 Budget

    The Indonesian government, central bank (Bank Indonesia) and Commission XI of the House of Representatives (DPR) agreed to revise several macroeconomic targets in the Revised 2015 State Budget (APBN-P 2015). The revisions include the country’s economic growth (GDP) pace, the average rupiah exchange rate, and inflation target. In essence, the revisions indicate that Indonesian authorities have become less optimistic about the Indonesian economy in 2015 amid external pressures.

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  • Key Interest Rate: Bank Indonesia Maintains BI Rate at 7.75%

    Key Interest Rate: Bank Indonesia Maintains BI Rate at 7.75%

    The central bank of Indonesia (Bank Indonesia) decided to keep its benchmark interest rate (BI rate) at 7.75 percent at its Board of Governors’ Meeting on Thursday (15/01). The country’s Lending Facility and Deposit Facility were maintained at 8.00 percent and 5.75 percent, respectively. According to the bank this interest rate environment is sufficient to push inflation, which has accelerated to 8.36 percent year-on-year (y/y) in December due to fuel subsidy reforms, back towards its target of 3 to 5 percent (y/y) in 2015.

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  • World Bank Alerts Indonesia on Tighter External Financing in 2015

    World Bank Alerts Indonesia on Tighter External Financing in 2015

    Despite slowing economic growth in China (the world’s second-largest economy), the World Bank forecasts higher economic growth for emerging markets in 2015 driven by a decline in global oil prices, a stronger US economy, and continued low global interest rates. The World Bank expects to see a 4.8 percent year-on-year (y/y) GDP growth rate in emerging markets this year, up from an estimated 4.4 percent (y/y) in 2014. Meanwhile, the global economy is expected to grow 3 percent (y/y) in 2015.

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  • Deutsche Bank Gives Positive Assessment of Indonesian Bonds

    Deutsche Bank Gives Positive Assessment of Indonesian Bonds

    Despite pressures on the rupiah exchange rate amid a bullish US dollar ahead of monetary tightening in the USA, the Deutsche Bank, one of the world's leading financial service providers, holds a positive view on Indonesian bonds due to Indonesia’s recent fuel subsidy reforms and solid macroeconomic fundamentals. According to the German lender, Indonesian bond yields seem to have decoupled from the currency’s recent depreciating trend although “continued foreign exchange stress could eventually lead to capitulation from bond investors.

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  • Bank Indonesia’s BI Rate Unchanged after December Board Meeting

    Indonesia’s central bank decided to keep its benchmark interest rate (BI rate) at 7.75 percent at Thursday’s Board of Governors’ Meeting (11/12). The Lending Facility and Deposit Facility were kept at 8.00 percent and 5.75 percent, respectively. The central bank is convinced that the current interest rate levels are effective to combat short-term inflationary pressures (triggered by the implementation of higher subsidized fuel prices in mid-November) pushing it back to the target corridor of between 3 and 4 percent (y/y) in 2015.

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  • World Bank Report: GDP Growth Indonesia Revised to 5.2% in 2015

    On Monday (08/12) the World Bank released the December edition of its Indonesia Economic Quarterly, entitled ‘Delivering Chance’. In the report the World Bank cut its forecast for economic growth in Indonesia next year to 5.2 percent (y/y), from 5.6 percent (y/y) in the July edition of its flagship publication, due to weaker investment growth and sluggish exports. Indonesia’s GDP growth in 2014 is projected at 5.1 percent (y/y), slightly below the World Bank’s previous estimate of 5.2 percent.

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Latest Columns Macroeconomy

  • World Bank: Developing East Asia and Pacific is an Engine of Global Growth

    The latest World Bank report of East Asia and the Pacific states that "driven by strong domestic demand, economies of developing East Asia and Pacific continue to be an engine of global growth, growing at 7.5 percent in 2012 - higher than any other region in the world." Amid a recovering global economy the report projects that regional growth will rise to 7.8 percent in 2013 and ease to 7.6 percent in 2014.

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  • Indonesia's Central Bank Keeps Its Benchmark Rate at Record Low 5.75 Percent

    The central bank of Indonesia (Bank Indonesia, or BI) decided to maintain its record low policy rate for the 15th straight month at 5.75 percent as it is considered consistent with its inflation target range of 3.5-5.5 percent in 2013 and 2014. The central bank also stated that the global economic recovery is accompanied by many uncertainties which result in a lower forecast for Indonesia's economic growth. The full press release of Bank Indonesia can be read below.

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  • Despite Growth Some Issues Block Indonesia's Financial and Property Stocks

    buildings jakarta indonesia-investments richard van der schaar

    In its most recent report, the Asian Development Bank (ADB) forecasts Indonesia to continue its robust economic growth. Last year, the economy of Indonesia expanded 6.23 percent, and according to the ADB this figure will rise to 6.4 percent in 2013 and 6.6 percent in 2014. However, since the start of April there have been some issues that are causing Indonesia's stock indices to go down. Although believed to be only temporary, it is worth taking a closer look.

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