• Foreign Banks in Indonesia Post Large Profit on Rupiah Depreciation

    According to data from the Financial Services Authority (OJK), foreign banks operating in Indonesia have posted great profit growth in the January to May 2014 period. Combined, these foreign banks have recorded a 94.36 percentage point growth (year-on-year) in profit to IDR 3.79 trillion (USD $323.9 million) in the first five months of this year. The reason behind this jump in profit is the sharply depreciated rupiah exchange rate. Over the course of 2013, the rupiah fell over 25 percent against the US dollar.

    Lanjut baca ›

  • Indonesia Trade Balance June 2014: Recording a USD $300 Million Deficit

    The trade balance of Indonesia swung back into a deficit in June 2014. According to data from Statistics Indonesia (BPS), published on Monday (04/08), the country’s trade deficit amounted to USD $300 million in June. Indonesian exports grew 4.45 percent (year on year) to USD $15.42 billion, while Indonesian imports increased 1.83 percent (year on year) to USD $15.72 billion. This year so far (the January to June period), Southeast Asia’s largest economy has to cope with a USD $1.15 billion trade deficit.

    Lanjut baca ›

  • Relatively Mild Peak in Inflation in Indonesia: 0.93% in July 2014

    On Monday (04/08), Statistics Indonesia (BPS) announced that the July 2014 inflation figure was 0.93 percent (month-on-month), considerably higher than the 0.43 percent of inflation in the previous month but significantly lower than the 3.29 percent inflation recorded in July last year (when inflation accelerated sharply due to higher subsidized fuel prices implemented by the government in June 2013). Head of BPS Suryamin stated that food prices contributed most to the July inflation pace, followed by instant food, drinks, cigarettes and tobacco.

    Lanjut baca ›

  • Indonesia Presidential Election Court Case: Prabowo Subianto vs Jokowi

    As is known, presidential candidate Prabowo Subianto did not accept his defeat in Indonesia’s July 2014 presidential election and pledged to challenge the election result in the country’s Constitutional Court (Mahkamah Konstitusi). In last month’s presidential race, Subianto was defeated by Joko Widodo (popularly known as Jokowi) by 53.15 percent to 46.85 percent. However, the defeated contender claims that there have been many cases of fraud or violations at the polling stations on Election Day (9 July 2014).

    Lanjut baca ›