• Third Policy Package Indonesia: Micro-Finance and Cheaper Diesel & Electricity

    On Wednesday evening (07/10), the Indonesian government unveiled the third (and last) installment of its economic policy package. This latest installment aims to boost the industrial sector by cutting the diesel price by IDR 200 to IDR 6,700 (USD $0.48) per liter and by giving a 30 percent discount on electricity tariffs for labor-intensive industries. Furthermore, ceramic and chemical producers will obtain cheaper gas per 1 January 2016. The package was unveiled by Darmin Nasution, Indonesia's Coordinating Minister for Economic Affairs.

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  • Bank Indonesia: Foreign Exchange Reserves Fell to $101.7 Billion in September

    The central bank of Indonesia (Bank Indonesia) announced on Wednesday (07/10) that the country's foreign exchange reserves had fallen to USD $101.7 billion at the end of September 2015 (from USD $105.3 billion in the preceding month). The reserve assets declined due to the servicing of government foreign debt and rupiah exchange rate stabilization efforts. Until Friday (02/10), the rupiah was plagued by severe pressure caused by looming higher US interest rates.

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  • Indonesia Financial Market Update: Rupiah Gains most in 7 Years, Stocks Climb

    Indonesia's rupiah and Malaysia's ringgit led gains among emerging market currencies in Asia on Wednesday (07/10) on the back of capital inflows (triggered by an expected delay in higher US interest rates), better-than-expected Malaysian export data and higher oil prices. The Indonesian rupiah appreciated 2.95 percent to IDR 13,821 per US dollar (Bloomberg Dollar Index), the strongest gain in seven years. Meanwhile, yields on ten- and 15-year Indonesian government bonds fell to 8.710 percent and 8.870 percent, respectively.

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  • Car Sales Indonesia Update: Falling on Weak Purchasing Power

    Car sales in Indonesia continued to decline in September 2015. Based on the latest data from the Indonesian Automotive Industry Association (Gaikindo), a total of 92,478 vehicles were sold in Southeast Asia's largest economy in September, down 9.8 percent from sales in the same month last year. Indonesian car sales have been slowing since the all-time sales peak in 2013 amid the country's easing economic growth pace (triggering weaker purchasing power).

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