In line with major stock indices in Asia, Indonesia’s benchmark Jakarta Composite Index rebounded directly after the opening of trade on Thursday (27/08). The index surged 2.51 percent to 4,344.11 points. Most indices in Asia were up after the US Dow Jones Industrial Average climbed nearly 4 percent on Wednesday (26/08), effectively ending a six-day losing streak, on heightened expectation that the Federal Reserve will not raise its key Fed Fund Rate yet in September. However, markets are still plagued by severe volatility.

Lanjut baca ›

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.

Lanjut baca ›

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.

Lanjut baca ›

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?

Lanjut baca ›

Last week, Indonesia’s central bank (Bank Indonesia) refrained from adjusting its relatively high interest rate regime as it is committed to support the ailing rupiah and combat high inflation. Another decision that was revealed by Bank Indonesia is the soon-to-be-introduced regulation that limits total (non-collateral) monthly US dollar purchases to USD $25,000 (down from USD $100,000 previously). This regulation will be implemented in a move to thwart speculators that want to take advantage of the weak and volatile rupiah.

Lanjut baca ›

The Indonesian rupiah continues to flirt with a 17-year low as the currency is getting closer and closer to the IDR 14,000 per US dollar level. Meanwhile, Indonesian stocks took another blow as the country’s benchmark stock index (Jakarta Composite Index) fell 2.39 percent on Friday (21/08). Such turmoil is not only confined to Indonesia but was felt across Asia and the West. Markets were plagued by selloffs in energy shares (due to falling oil prices) and uncertainty about the timing of higher US interest rates.

Lanjut baca ›

Contrary to the expectation of most analysts, the US Federal Reserve will possibly refrain from raising its key interest rate in September. On Wednesday evening (19/08) the minutes of the Fed's latest FOMC meeting (held in July) were released and they showed that most officials agreed that the US economy is heading for an interest rate hike but is not quite there yet as inflation remains lower than targeted while the current sluggish global economy poses risks and triggers high volatility.

Lanjut baca ›

Indonesian stocks and the rupiah continued to weaken on Wednesday (19/08) in line with most other Asian stocks and currencies. Investors are cautious ahead of the release of the minutes of the Federal Reserve’s latest FOMC meeting, hence moving into safe haven assets. The minutes are to be released early Thursday morning local Indonesian time. Investors will be searching for signs informing about a possible Fed Fund Rate hike in September. If there are such signs, emerging market assets will be under heavy pressure tomorrow.

Lanjut baca ›

Just before the market closed on Tuesday (18/08) the Indonesian rupiah experienced a remarkable recovery, signalling that the country’s central bank (Bank Indonesia) intervened to support the ailing currency (after Malaysia’s ringgit, the rupiah is the second-worst performing emerging currency in Asia so far this year, weakening 11.2 percent against the US dollar). Today, based on the Bloomberg Dollar Index, the Indonesian rupiah was gradually falling toward IDR 13,860 per US dollar until it suddenly appreciated markedly.

Lanjut baca ›

For the sixth straight month, the central bank of Indonesia (Bank Indonesia) left its interest rate regime unchanged at Tuesday’s Board of Governor’s meeting (18/08) as it aims to guard the rupiah against severe volatility (which occurred after China’s yuan was allowed to devalue, while markets are still preparing for monetary tightening in the USA) and tries to combat inflation.

Lanjut baca ›

The central bank of Indonesia (Bank Indonesia) stated that, besides global volatility caused by uncertainty about the timing of higher US interest rates, the rupiah has been - and remains - under pressure due to Indonesia’s increasing private sector debt and the wide current account deficit. Moreover, as subsidiaries of multinational companies in Indonesia tend to send back dividends to the foreign parent companies in the second quarter (implying rising US dollar demand), the rupiah is plagued by additional pressures up to June.

Lanjut baca ›

Indeks harga konsumen Indonesia turun di bulan Februari 2015, mencatat deflasi 0,36% dalam basis month-on-month (m/m), sementara tingkat inflasi tahunan (y/y) nasional berkurang menjadi 6,29%, turun dari 6,96% (y/y) di bulan sebelumnya. Tekanan-tekanan inflasi berkurang terutama karena menurunnya harga cabai dan bahan bakar. Berkurangnya tingkat inflasi di negara dengan ekonomi terbesar di Asia Tenggara ini bisa menyediakan ruang bagi bank sentral (Bank Indonesia) untuk memotong suku bunga lebih lanjut di tahun ini.

Lanjut baca ›

The Indonesian rupiah exchange rate continued to depreciate on Monday (02/03). According to the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.30 percent to IDR 12,970 per US dollar, a six-year low. Apart from general bullish US dollar momentum in recent months (amid monetary tightening in the USA), the rupiah weakened due to Bank Indonesia’s signals that it tolerates a weaker currency in a move to boost exports (limiting the country’s current account deficit), and due to China’s interest rates cut.

Lanjut baca ›

Nilai tukar rupiah menguat pada Senin (16/02) karena neraca perdagangan dan neraca transaksi berjalan membaik, sementara dolar AS melemah karena penjualan ritel AS yang mengecewakan dan karena optimisme bahwa Yunani akan tetap menjadi anggota zona euro. Sementara itu, kementerian keuangan Indonesia mengadakan lelang obligasi konvensional di mana Rp 12 triliun dijual. Berdasarkan data Bloomberg, rupiah terapresiasi 0.35 persen menjadi Rp 12,753 per dolar AS pada Senin (16/02).

Lanjut baca ›

The Indonesian rupiah exchange rate appreciated and Indonesian stocks rose on Wednesday (04/02) on the back of rallying oil prices, a successful bond auction, easing tensions in Europe, and weak US factory orders. Based on the Bloomberg Dollar Index, Indonesia’s rupiah appreciated 0.21 percent to IDR 12,630 per US dollar on Wednesday (04/03). Meanwhile, the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) climbed 0.45 percent to 5,315.28 points.

Lanjut baca ›

Positive macroeconomic data of Indonesia - involving the significantly lower trade deficit in 2014 and easing inflation - had a good impact on the Indonesia rupiah exchange rate on Tuesday (03/02) although prior to closing the currency somewhat slid after Australia's central bank cut its interest rates causing speculation of further policy easing around the Asia Pacific region in a move to support sluggish growth and avert deflation. Most emerging Asian currencies strengthened on Tuesday against the US dollar on stronger risk appetite.

Lanjut baca ›

Both Indonesia’s rupiah exchange rate and stocks strengthened on Tuesday (27/01) as concerns about Greece exiting the Eurozone somewhat eased while the positive market sentiments that were caused by the European Central Bank’s recently unfolded quantitative easing program are still felt. Indonesia’s benchmark stock index (Jakarta Composite Index) gained 0.33 percent to 5,277.15 points, while the rupiah appreciated 0.31 percent to IDR 12,469 per US dollar based on the Bloomberg Dollar Index.

Lanjut baca ›

Indonesian stocks hit a record high on Thursday (22/01). Most emerging Asian stocks and currencies strengthened on increased speculation that the European Central Bank (ECB) is to launch a massive bond-buying program (which was confirmed later on the day after Asian markets had closed), a move aimed at boosting inflation in the Eurozone and which puts pressure on euro-denominated assets. The euro had depreciated 1.67 percent against the US dollar by 11:20 ET on Thursday based on Bloomberg data.

Lanjut baca ›

The Indonesian rupiah exchange rate appreciated 0.76 percent to IDR 12,481 per US dollar on Wednesday (21/01) based on the Bloomberg Dollar Index. The performance of the rupiah was in line with most other emerging Asian currencies as Japan’s yen strengthened (against the US dollar) after Japan’s central bank announced to maintain an accommodative monetary policy in an attempt to boost inflation to two percent (y/y). Furthermore, speculation about quantitative easing in Europe boosted attractiveness of riskier Asian assets.

Lanjut baca ›

The Indonesian rupiah exchange rate depreciated on Wednesday (14/01) as global oil and other commodity prices continued to fall thus casting a negative spell on Indonesia’s currency. The rupiah depreciated 0.11 percent to IDR 12,614 per US dollar according to the Bloomberg Dollar Index. Market participants are concerned about the negative influence of low commodity prices on Indonesia’s export performance. Southeast Asia’s largest economy has had to cope with a wide trade and current account deficit in recent years.

Lanjut baca ›