• Bank Indonesia Raises Key Interest Rate to 4.50% at May Meeting

    In line with our expectation, the central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate (BI 7-Day Reverse Repo Rate) by 25 basis points (bps) to 4.50 percent at the monetary policy meeting in May 2018 that was concluded today (17/05). Agus Martowardojo, Governor of Bank Indonesia, added that the deposit facility and lending facility were raised to 3.75 percent and 5.25 percent, respectively.

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  • Rupiah & Bonds Under Pressure Ahead of Bank Indonesia Meeting

    Indonesian assets remain under pressure as the US 10-year treasury yield rose to 3.095 percent, touching a near seven-year peak. As a result the US dollar is at a five-month high. While the US dollar rally stalled last week after the release of weaker-than-expected US inflation (April data), the greenback's performance was lifted this week on the back of strong US consumer spending figures. It is having a big impact in Asia.

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  • Terrorism in Indonesia: Suicide Bombings at 3 Churches & Police HQ in Surabaya & Riau

    On Sunday morning (13/05) terrorists struck three churches in Surabaya (East Java) when Sunday morning services were about to start or were ongoing. By 14:00 pm local time on Monday police confirmed 15 deaths (including the six terrorists) and 45 injured people (who are being treated in local hospitals). However, over the past hours these numbers have been rising and therefore there is a chance they will rise further in the next couple of hours as developments proceed and more information becomes available.

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  • Trade Balance Indonesia: $1.63 Billion Deficit in April 2018

    Based on data from Statistics Indonesia (BPS), Indonesia's trade balance showed a USD $1.63 billion deficit in April 2018. The deficit, which surprised most analysts' expectations, is the nation's biggest monthly trade deficit in four years (April 2014). While exports grew 9.0 percent year-on-year (y/y) to USD $14.47 billion, imports grew much more impressive - at a pace of 34.7 percent (y/y) - to USD $16.09 billion last month.

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