Indonesia's benchmark Jakarta Composite Index finished at an all-time record level on Friday (17/03), supported by mostly rising Asian stocks as global investors are attracted again by higher-yielding assets in emerging markets after the US Federal Reserve turned out to be not as "hawkish" as market participants had assumed. Indeed the Fed raised its key Fed Funds Rate by 25 basis points at the March policy meeting but the US central bank emphasized that further interest rate hikes would be gradual.

Lanjut baca ›

In line with expectations, the Federal Reserve raised its benchmark interest rate by 25 basis-points to the range of 0.75 - 1.00 percent on Wednesday (15/03). It was the Fed's third rate hike in the past 15 months. As this hike had already been expected by basically all market participants it was more important to learn the Fed's stance on the pace and number of further rate hikes in 2017. On this matter Fed Chief Janet Yellen remained rather dovish, saying any further hikes in 2017 would be gradual. Wall Street now expects to see two more hikes in 2017.

Lanjut baca ›

Ahead of the Federal Reserve meeting (14-15 March) investor sentiment remains subdued with thin trade in Asia's stock markets. Most, if not all, market participants expect the Fed to raise its benchmark Fed Funds Rate by 25 basis points supported by recently strong US jobs reports. The main questions now are whether the US rate hike is already priced in (in markets) or will we see big (yet temporary) capital outflows from emerging markets, including Indonesia? And secondly, will the Fed raise its interest rate environment faster than expected in the remainder of 2017?

Lanjut baca ›

The central bank of Indonesia (Bank Indonesia) is also among the many institutions or market participants that expect the Federal Reserve to raise its Fed Funds Rate by 25 basis points at the coming Federal Open Market Committee (FOMC) meeting (14-15 March 2017). This move should put some temporary pressure on the Indonesian rupiah (as Indonesia will most likely see capital outflows) and therefore Bank Indonesia sees few to none room for additional monetary easing in Southeast Asia's largest economy in the remainder of this year.

Lanjut baca ›

Ahead of looming higher interest rates in the USA, Indonesia's financial authorities seem confident that the impact of tightening US monetary policy on Indonesia's capital markets will be controlled as Indonesia's economic fundamentals are solid, while the nation's central bank (Bank Indonesia) and government are ready to step in to stabilize the rupiah exchange rate or the pace of capital flows, if needed.

Lanjut baca ›

Indonesia's benchmark Jakarta Composite Index fell 0.32 percent to 5,391.21 points on Friday (03/03), while the Indonesian rupiah depreciated 0.19 percent to IDR 13,383 against the US dollar (Bloomberg Dollar Index). The performance of Indonesian stocks and the currency was in line with the performance of its counterparts in Asia. Asian shares were tracking losses on Wall Street overnight where profit-taking kicked in as US indices have been in rally-mode since Donald Trump won the presidential election in November 2016.

Lanjut baca ›

Indonesia's benchmark Jakarta Composite Index (IHSG) surged 1.06 percent to 5,421.54 points shortly before closing on Thursday (02/03) as most Asian stock indices were in the green zone, lifted by the performance of Wall Street overnight. Indonesian stocks were actually the best performing stocks across Asia today. To explain why Indonesian stocks performed so well today, we need to look first at US stocks' performance overnight. It is all related to Trump's latest speech.

Lanjut baca ›

Despite US dollar strength amid promised tax cuts in the USA and looming higher US interest rates, the Indonesian rupiah is not expected to depreciate as much as its Asian counterparts according to the DBS Bank. On Wednesday (01/03) the rupiah weakened 0.19 percent to IDR 13,363 per US dollar (Bloomberg Dollar Index). So far this year, however, the rupiah has strengthened nearly one percent against the greenback.

Lanjut baca ›

Based on the minutes of the Federal Reserve's January policy meeting the US central bank will have a cautious approach when it comes to interest rate hikes. Fed officials agreed that a rate hike should occur fairly soon, perhaps as soon as March 2017, but only in case US jobs and inflation data are in line with expectation. This outlook led to a weakening US dollar as well as stocks as investors had been anticipating a more "hawkish" tone from Fed officials.

Lanjut baca ›

The Indonesian rupiah is appreciating against the US dollar on Monday (06/02). Based on the Bloomberg Dollar Index, the rupiah had appreciated 0.13 percent to IDR 13,325 per US dollar by 12:15 pm local Jakarta time. It is assumed that optimism about Indonesia's improving economic fundamentals in combination with rebounding commodity prices and slower-than-expected US economic growth supports the currency of Indonesia. Meanwhile, other Asian emerging market currencies are also appreciating against the greenback.

Lanjut baca ›

Currently, one of Indonesia's main financial issues (and one which puts serious pressures on the Indonesian rupiah exchange rate) is the country's wide current account deficit. According to data from Statistics Indonesia, Indonesia's current account deficit totaled USD $8.4 billion in the third quarter of 2013. This figure is equivalent to a whopping 3.8 percent of Indonesia's gross domestic product (GDP). Generally, a current account deficit that exceeds 2.5 percent of GDP is considered unsustainable.

Lanjut baca ›

Various factors contributed to the 2.30 percent decline of the Jakarta Composite Index (IHSG) on Tuesday (26/11). The index in fact fell below its support level. What were the main reasons for this weak performance? Firstly, the Indonesian rupiah exchange rate has been depreciating severely and causes concerns among market players. Secondly, most Asian stock indices fell as valuations climbed high and the Japanese Yen strengthened. Thirdly, European stock openings on Tuesday were weak. All these reasons together led to foreign net selling.

Lanjut baca ›

The Jakarta Composite Index (Indonesia's benchmark stock index, abbreviated IHSG) made a positive start on Monday (25/11). Investors were confident amid today's rising indices throughout Asia, brought on by the record breaking Dow Jones Index on Wall Street at the end of last week. However, this market optimism failed to provide a significant boost to the IHSG as the Indonesian rupiah exchange rate continued its downward spiral. The IHSG was up 0.39 percent to 4,334.80 points at the end of Monday's trading day.

Lanjut baca ›

On the last day of the trading week (22/11), Indonesia's benchmark stock index (IHSG) fell 0.19 percent to 4,317.96 points thereby extending its losing streak to three days as investors remain concerned about the looming end - or at least winding down - of the Federal Reserve's monthly USD $85 billion bond buying program known as quantitative easing (QE3). Foreign investors recorded a net sell of IDR 38 billion (USD $3.3 million). The other indices in Asia were mixed. The Hang Seng and Nikkei were up but the Shanghai Composite was down.

Lanjut baca ›

IHSG masih dalam laju pelemahannya setelah pelaku pasar turut merespon negatif hasil rapat FOMC yang mensinyalkan akan adanya pengurangan pembelian obligasi AS dalam beberapa bulan ke depan dan terimbas pelemahan laju bursa saham Asia setelah rilis pre-HSBC manufacturing PMI China menunjukkan adanya penurunan. IHSG yang sedang mencoba untuk keluar dari tren pelemahan menjadi berkurang peluangnya dengan maraknya sentimen-sentimen negatif sehingga memicu adanya aksi jual, termasuk laju nilai tukar Rupiah yang masih betah dalam tren penurunannya membuat pelaku pasar semakin kehilangan mood.

Lanjut baca ›

The Federal Reserve, central banking system of the United States, expects that the current economic recovery of the USA is set to continue. In the minutes of the latest Federal Open Market Committee (FOMC) meeting, held at end-October 2013, it is mentioned that within the next few months the Federal Reserve can start winding down its monthly USD $85 billion stimulus program (known as quantitative easing). The next FOMC meeting, which will shed more light on the future of the bond-buying program, is scheduled for December 2013.

Lanjut baca ›

Tampaknya laju IHSG tidak sebaik sehari sebelumnya dimana mampu menguat jelang akhir sesi perdagangan. IHSG sedari awal perdagangan terus melaju melemah setelah terimbas penurunan bursa saham Asia. Seperti yang pernah kami katakan dimana setiap adanya kenaikan akan selalu dimanfaatkan untuk aksi jual sehingga penguatan yang sempat terjadi hanya bersifat terbatas dan tidak dapat bertahan lama.

Lanjut baca ›

The government of Indonesia will release two additional fiscal policy packages at the end of November or start of December that both aim to heal Indonesia's current account deficit. The two packages constitute follow ups of the policy package that was released in August 2013. Previously, deputy minister of Finance, Bambang Brodjonegoro, announced that an additional package would be released in October. However, it turned out that the government needed some more time to prepare the two additional packages.

Lanjut baca ›

Positifnya laju bursa saham Asia sepanjang sesi yang terimbas dari menghijaunya bursa saham AS dan Eropa di akhir pekan kemarin dan adanya spekulasi Pemerintah China akan melakukan reformasi ekonomi untuk menopang pertumbuhan negaranya dan berita positif dari tetapnya rating BBB- peringkat utang Indonesia oleh Fitch Rating memberikan angin segar pada IHSG pada hari Senin (18/11).

Lanjut baca ›

On Thursday 14 November 2013, Agus Martowardojo, Governor of Indonesia's central bank (Bank Indonesia), delivered his end-of-the-year speech at the Annual Bankers’ Dinner. The meeting was attended by leaders from Indonesia's House of Representatives (DPR), economic ministers, leaders of the country's banking industry and business community, non-ministerial government agencies as well as a number of international institutions, thus representing a strategic forum in terms of the national economy.

Lanjut baca ›