• Analysis: Impact US Monetary Tightening on the Indonesian Economy

    The Standard Chartered Bank expects the economy of Indonesia to accelerate slightly in 2015 compared to this year’s estimated performance. The bank forecasts a growth pace of 5.2 percent year-on-year (y/y) next year, up from 5.1 percent (y/y) in 2014. Standard Chartered Bank economist Eric Sugandi recently said that the Indonesian economy will be affected by two factors: the great rotation (capital outflows from emerging markets ahead of US interest rate hikes) and growth disparity (slowing growth or recession in China and Japan).

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  • After Fed Meeting Indonesia’s Rupiah Appreciates Markedly

    Although many currencies weakened against the US dollar after the US Federal Reserve stated that it is on track to raise its key Fed Fund Rate "somewhere next year" amid structural improvement of the US economy (after having kept the rate near zero for a "considerable time"), Indonesia's rupiah opened strong on Thursday (18/12). Based on the Bloomberg Dollar Index, Indonesia’s currency had appreciated 0.91 percent to IDR 12,553 per US dollar at 9:15 local Jakarta time.

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  • Asian Development Bank (ADB) Report: Growth Forecasts Asia Revised

    In its latest report entitled ‘Growth Hesitates in Developing Asia’ (which is a supplement to the ‘Asian Development Outlook 2014 Update’), the Asian Development Bank (ADB) slightly downgraded economic growth in developing Asia to 6.1 percent (y/y) in 2014 from its September estimate of 6.2 percent (y/y). Despite slowing momentum the ADB believes that current low oil prices constitute a great opportunity for Asian countries to conduct structural reforms as many of these countries are net oil importers.

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  • Global Risk Aversion: Indonesian Stocks & Rupiah Hit by Sell-Off in Asia

    Troubles continued on Tuesday (16/12) for emerging markets. Currencies and stocks in the Asia-Pacific were mostly down amid a significant interest rate hike by Russia’s central bank, falling oil prices, and expected weakening of China’s manufacturing activity. Indonesian stocks were down 1.81 percent to 5,014.53 points by 11:20 am local Jakarta time, while the rupiah had depreciated 0.88 percent to 12,825 per US dollar by the same time according to the Bloomberg Dollar Index.

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