• Joko Widodo Presents Indonesia’s 2016 State Budget Draft in Parliament

    On Friday (14/08) the Indonesian government unveiled its 2016 State Budget draft at a session in the House of Representatives (DPR). The draft is important as it shows government targets regarding the macroeconomy of Indonesia and it shows on what fields the government will focus in terms of public spending. The government - led by Indonesian President Joko Widodo - is optimistic that economic growth will finally rebound after four years of slowing economic growth as its 2016 GDP growth target was set at 5.5 percent (y/y).

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  • Current Account Deficit Indonesia Improves on Weak Imports

    The central bank of Indonesia (Bank Indonesia) announced on Friday (14/08) that the country’s current account deficit narrowed to USD $4.48 billion, or 2.1 percent of gross domestic product (GDP), in the second quarter of 2015. In the same quarter last year the deficit stood at USD $9.59 billion). As such, the current account deficit (CAD) has become more sustainable and this may provide some support for the rupiah which is currently facing tough times (ahead of a looming US interest rate and China’s yuan devaluation).

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  • 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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  • Cement Demand Indonesia Continued to Fall in January-July 2015

    In the first seven months of 2015 Indonesian cement sales continued to fall, signalling decreased property and infrastructure development in Southeast Asia’s largest economy. Domestic cement sales fell 4.1 percent to 31.3 metric tons in the January-July 2015 period from the same period last year. Apart from the slowing economy (which slowed to a six-year low in the second quarter of 2015), weakening cement sales in July were also caused by Idul Fitri celebrations when business traditionally comes to a near standstill.

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