• Indonesian Stocks & Rupiah: State-Owned Firms to Buy Back Shares

    There are few signs that Indonesian stocks and the rupiah will rebound on Tuesday (25/08). Benchmark stock indices of China and Japan continued to fall directly after opening on Tuesday and are therefore expected to drag down other markets in Asia. Yesterday, major markets in the USA and Europe slumped, while commodity prices hit new lows (oil slid below USD $40 per barrel for the first time since 2009). The rupiah continued to weaken after opening on Tuesday to IDR 14,065 per US dollar by 09:06 am local Jakarta time.

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  • Indonesia’s Rupiah Weakens beyond Psychological Level of IDR 14,000/USD

    For the first time since July 1998, when Indonesia was still plagued by the Asian Financial Crisis, the rupiah has fallen beyond the IDR 14,000 per US dollar mark. Many analysts had already predicted over the past couple of months that Indonesia’s currency would weaken beyond this ‘psychological’ level as external pressures are simply too high. Since 2013 the rupiah has weakening (against the US dollar) as the US Federal Reserve started preparing for monetary tightening. The recent devaluation of China’s yuan added more pressure.

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  • Indonesian Finance Ministry Extends Tax Incentive Pioneering Industries

    Today, the Indonesian government announced it extended a tax incentive for “pioneering” industries. This term refers to those industries that are considered key industries that cause a multiplier effect in the Indonesian economy (hence boosting economic) and provide employment opportunities for the local population. Examples of such industries are oil refinery, infrastructure, maritime transport, telecommunications, downstream metal production and agriculture processing. The extended incentive is effective per 16 August 2015.

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  • Global Selloff Hits Asia: Indonesian Stocks & Rupiah Weaken Sharply

    The global selloff hit Asian markets on Monday (24/08). Stock indices and currencies in the Asian region collapsed dramatically on Monday morning. Indonesia’s benchmark Jakarta Composite Index (IHSG) was down 4.66 percent to 4,133.33 points by 10:50 am local Jakarta time, while the rupiah had weakened beyond IDR 14,000 per US dollar according to the Bloomberg Dollar Index. China’s benchmark Shanghai Composite Index plunged over 8 percent. What is happening to the emerging market assets in Asia today?

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