• Indonesian GDP Growth and Inflation Expected to Slow further

    The pace of economic growth of Indonesia is expected to remain below five percent year-on-year (y/y) in the second quarter of 2015 according to Reuters poll involving 22 analysts. In fact, the poll shows that further slowing economic growth is expected. In the first quarter of 2015, Indonesia’s economic growth came at 4.71 percent (y/y), the weakest growth pace in six years. According to the poll, analysts see a gross domestic product (GDP) growth rate of 4.61 percent (y/y) in the second quarter of 2015.

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  • Indonesian Shares See Technical Rebound; Rupiah Depreciates further

    In line with the general trend in Southeast Asia, Indonesian stocks traded mostly higher on the last trading day of the week. Despite not-so-good H1-2015 corporate earnings reports from the larger listed Indonesian companies, the benchmark Jakarta Composite Index was up 1.33 percent to 4,775.10 points in the first trading session on Friday (31/07). According to market watchers, Indonesia’s index is experiencing a technical rebound after falling earlier this week. However, the index is still on track to post its second straight monthly decline.

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  • Indonesia to Sell Unguaranteed Samurai Bonds to Japanese Investors Soon

    The Finance Ministry of Indonesia started to market multi-tranche Samurai (yen-denominated) bonds, partially without guarantees from the Japan Bank for International Cooperation (JBIC), a Japanese public financial institution. It will be the first time that Indonesia issues unguaranteed Samurai bonds and thus the result will inform how confident Japanese investors are in Indonesia’s debt markets. Previously, all Samurai bonds issued by the Indonesian government were guaranteed by JBIC.

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  • Stocks & Rupiah Indonesia: Cautious Reaction to Federal Reserve

    Similar to yesterday, Indonesian stocks and the rupiah are still moving cautiously on Thursday (30/07). Supported by yesterday’s rising US stocks and today’s mostly rising stocks in the Asia-Pacific region, the benchmark Jakarta Composite Index climbed 0.22 percent in the first trading session on Thursday. However, the latest statements from the US Federal Reserve also signal that a US interest rate hike is coming closer, hence giving rise to a stronger US dollar at the expense of most global currencies and the gold price.

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