In line with the performance of most emerging stock markets and currencies, Indonesian stocks and the rupiah were under pressure on Monday (28/03). The Jakarta Composite Index fell 1.11 percent, while the Indonesian rupiah depreciated 0.73 percent to IDR 13,343 per US dollar (Bloomberg Dollar Index). This performance is caused by rising speculation that the US Federal Reserve could hike its key Fed Fund Rate as early as April. Several Fed officials have made hawkish comments, while the upward revised 1.4 percent GDP growth of the US economy in Q4-2015 may show that the US is strong enough to cope with another rate hike.

Lanjut baca ›

Asian stocks were mixed after opening on the first trading day of the new week. Energy stocks are mostly down due to another retreat in global oil prices. Oil prices continued Friday's slide due to ongoing concern over excessive supply after last week's US rig count grew for the first time since December 2015. This implies pressure on "commodity-driven" assets, which includes Indonesian stocks and the rupiah. The Indonesian rupiah had depreciated 0.27 percent to IDR 13,152 per US dollar (Bloomberg Dollar Index), while the benchmark Jakarta Composite Index was down 0.07 percent by 09:15 am local Jakarta time.

Lanjut baca ›

In the first three monthly policy meetings this year (January-March) the central bank of Indonesia (Bank Indonesia) cut borrowing costs by a total of 75 basis points. Indonesia's benchmark interest rate (BI rate) was cut from 7.50 percent at the year-start to 6.75 percent at Thursday's Board of Governors' meeting. The overnight deposit facility rate and lending facility rate were also cut by 75 basis points, each, in the first three months. The lower interest rate environment in Indonesia signals that the financial fundamentals are strong. This is partly reason behind strong inflows of foreign capital into Southeast Asia's largest economy.

Lanjut baca ›

Stock markets in Asia as well as Asian emerging market currencies should perform well today after the US Federal Reserve left rates unchanged at its March policy meeting. Moreover, the central bank of the world's largest economy stated that it expects fewer rate hikes in the coming months (dovish outlook) as economic recovery of the USA is still fragile amid slower global growth and turmoil in world markets linked to low oil price. As a result risk sentiment improved sharply, while the US dollar suffered losses.

Lanjut baca ›

The Indonesian rupiah is flirting with the IDR 13,000 per US dollar level on Monday (07/03) supported by improving risk appetite of investors. By 13:40 pm local Jakarta time, the currency of Indonesia had appreciated 0.64 percent to IDR 13,047 per US dollar (Bloomberg Dollar Index). The rupiah is now on a 13-day 'winning streak', its longest rally in six years, and is the second-best performing emerging market currency after Brazil's real so far this year. What is behind this good performance, and is it sustainable?

Lanjut baca ›

In line with expectations, the central bank of Indonesia (Bank Indonesia) cut its benchmark interest rate (BI rate) by 25 basis points to 7.0 percent at its February Board of Governor's policy meeting. Its overnight deposit facility rate (known as Fasbi) and lending facility rate were also cut by 0.25 percent to 5.00 percent and 7.50 percent, respectively. After the rate cut in January it was the second straight month of lower borrowing costs in Southeast Asia's largest economy. Meanwhile, Bank Indonesia also cut the reserve-requirement ratio for rupiah deposits at commercial banks by 100 basis points to 6.5 percent.

Lanjut baca ›

Tahun lalu Indeks Harga Saham Gabungan (IHSG) turun 12,13% sehingga berakhir pada 4,593.01 poin pada 30 Desember 2015 di tengah ketidakpastian global yang parah akibat ancaman pengetatan kebijakan moneter di Amerika Serikat (AS) dan perlambatan ekonomi yang besar dari Republik Rakyat Tiongkok (RRT). Hari ini, Bursa Efek Indonesia (BEI) akan memasuki hari perdagangan pertamanya di tahun baru. Apa yang kita harapkan dari kinerja saham Indonesia di Januari 2016?

Lanjut baca ›

Kementerian Keuangan Indonesia mengeluarkan pernyataan pada hari Minggu (3/1) yang menyatakan bahwa Indonesia gagal memenuhi sebagian besar target ekonomi yang ditetapkan dalam Anggaran Pendapatan dan Belanja Negara Perubahan (APBN-P) 2015. Alasan utama dari lemahnya kinerja adalah harga komoditi yang rendah, pertumbuhan ekonomi global yang lesu, perlambatan ekonomi Republik Rakyat Tiongkok (RRT), dan arus keluar modal yang dipicu oleh pengetatan kebijakan moneter Federal Reserve Amerika Serikat (AS). Hanya realisasi inflasi dan hasil treasury yield yang sejalan dengan target pemerintah.

Lanjut baca ›

Hari perdagangan terakhir tahun 2015 di Bursa Efek Indonesia (BEI) telah berlalu dan sekarang saatnya untuk melihat kembali kinerja Indeks Harga Saham Gabungan (IHSG) dan rupiah selama tahun 2015. Tahun 2015 merupakan tahun yang hektik, ditandai dengan volatilitas tinggi karena ketidakpastian tentang waktu kenaikan tingkat suku bunga AS (yang akhirnya diputuskan oleh Federal Reserve pada bulan Desember 2015) dan perlambatan ekonomi Republik Rakyat Tiongkok (RRT).

Lanjut baca ›

Dengan akan berakhirnya tahun 2015, maka ada baiknya kita melihat tantangan yang dihadapi Indonesia tahun ini dan apakah tantangan ini akan tetap ada di tahun 2016. Singkatnya, kami percaya bahwa tantangan eksternal yang ada saat ini akan bertahan di tahun yang baru. Pertumbuhan ekonomi negara ini diproyeksikan melaju menjadi 5,3% pada basis year-on year (y/y) pada tahun 2016 dari perkiraan 4,7% (y/y) pada tahun 2015 (tahun kelima berturut-turut perlambatan pertumbuhan produk domestik bruto), tetapi pertumbuhan ini terutama disebabkan oleh peningkatan pengeluaran pemerintah.

Lanjut baca ›

Today's release of the economic rescue package was not able to put Indonesia's main stock index (IHSG) into green territory. Also, the Indonesian rupiah maintained its losing streak. The IHSG fell 0.04 percent to 4,169.83 points. Interestingly enough, the IHSG was rising previous to the release of the package. After the release, however, it started to weaken slightly, which seems to indicate that market participants were a bit disappointed with the contents of the package as it contained no quick fixes to the economy.

Lanjut baca ›

On Thursday (22/08), Indonesia's main stock index (IHSG) was not able to continue the rebound that occurred yesterday when the country's biggest pension fund, Jamsostek, began buying blue-chip stocks in a move to support the ailing index. Indonesia's benchmark index has now lost about 20 percent since its record peak in May 2013. Today, it fell 1.11 percent to 4,171.41 points. Eight sectoral indices weakened, of which the top losers were construction (-5.78 percent), basic industry (-3.42 percent), and finance (-2.39 percent).

Lanjut baca ›

Concerns about Indonesia's weakening rupiah intensified on Wednesday (21/08) as the currency is now balancing on the psychological boundary of IDR 11,000 per US dollar. The rupiah continued its downward spiral today although its decline was limited due to the intervention of Indonesia's central bank (Bank Indonesia) that started selling US dollars again in an effort to support the rupiah. According to data compiled by Reuters, the rupiah has now fallen 10.7 percent this year.

Lanjut baca ›

On Tuesday (20/08), Indonesia's benchmark stock index (IHSG) continued its decline with its fourth consecutive day of losses. Amid major concerns about Indonesia's economic growth, high inflation, tighter monetary policy and current account deficit, the IHSG fell 3.21 percent to 4,174.98 points. It means that the index now stands about 21 percent lower than its record peak in May 2013. Foreign investors have been pulling money out of the Indonesian market. According to Bloomberg, about USD $255 million has been retracted in the last two days.

Lanjut baca ›

After two days of growth, Indonesia's main stock index (IHSG) became victim of profit taking on Thursday (15/08). Particularly domestic investors were eager to sell their Indonesian assets. Falling indices on Wall Street on Wednesday (14/08) in combination with global uncertainty about the end of the Federal Reserve's quantitative easing program made a negative impact on Asian stock indices, including the IHSG. Indonesia's central bank's decision to keep its benchmark interest rate at 6.50% was well-received by most investors.

Lanjut baca ›

Worldwide, most stock indices fell on Wednesday (07/08), particularly Japan's Nikkei index, after it has been speculated that the Federal Reserve may phase out the third round of its quantitative easing program in September 2013. This program, involving a monthly USD $85 billion bond-buying package, aims to spur US economic growth while keeping interest rates low. However, one important side effect has been rising stock markets around the globe. Now the end of QE3 is in sight, investors shy away from riskier assets.

Lanjut baca ›

On the last day before a week-long holiday, Indonesia's main stock index (IHSG) rose by 0.36 percent to 4,640.78 points on Friday (02/08). Although it was a relative quiet trading day, the performance was in line with today's performance of other Asian indices as well as European and American indices on Thursday (01/08). Stocks in the country's basic industries sector provided most support to the rise of the index. The Asian market still felt the positive impact of the Federal Reserve's announcement that it will continue the quantitative easing program.

Lanjut baca ›

As I stated before, mixed sentiments continue to influence the performance of Indonesia's main stock index (IHSG). During Thursday's trading day (01/08), the index moved sideways. News that the Federal Reserve intends to continue its bond-buying program made a good impact. However, this positive sentiment was offset by the release of Indonesia's high July inflation rate as well as the country's continued trade deficit. At the end of the day, the IHSG managed to post a gain as it received support from rising stock indices in Asia.

Lanjut baca ›

Despite being up at the start of the trading day, Indonesia's main stock index (IHSG) was under pressure for the remainder of Wednesday (31/07) due to investors' appetite for profit taking. Indonesian company reports (Semester I-2013) were mixed and, in combination with other mixed Asian indices, it made many investors wait and see for the meeting of the Federal Reserve first. Asian indices suffered because of Malaysia's and India's downgrade by Fitch Ratings. This triggered speculation whether Indonesia's outlook will be cut as well.

Lanjut baca ›

In line with the trend in the Asia-Pacific region, Indonesia's main stock index (IHSG) fell 1.68 percent to 4,580.47 on Monday (29/07). All sectoral indices weakened. The worst performing sectoral indices were mining, consumer goods and miscellaneous industries, falling 2.44 percent, 2.30 percent and 2.08 percent respectively. The value of transactions was also rather small at IDR 3.12 trillion (USD $305.9 million), while foreign investors continued to record net sales amounting to IDR 379.3 billion (USD $37.2 million). 

Lanjut baca ›