The Today's Headlines section of Indonesia Investments is a daily updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines will cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
Based on the latest data of Indonesia's Statistics Agency (BPS), Indonesia experienced deflation of 0.18 percent month-on-month (m/m) in September 2018, a figure that exceeded our expectations. Consequently, Indonesia's annual inflation slowed to a two-year low of 2.88 percent (y/y), down from 3.20 percent (y/y) in August 2018. Year to date, Indonesian inflation eased to 1.94 percent in the January-September 2018 period.
About one month after the devastating earthquakes that hit the island of Lombok and killed nearly 500 people, disaster has now struck at coastal cities and villages in Central Sulawesi. On Friday 28 September 2018 a big 7.5-magnitude earthquake (followed by numerous aftershocks) triggered a massive tsunami that hit at least two cities: provincial capital Palu and Donggala.
The Indonesian government took another major step forward in becoming the majority stakeholder (through state-owned mining holding company Indonesia Asahan Aluminium, or Inalum) of mining giant Freeport Indonesia that operates the lucrative Grasberg mine in Papua.
The central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate (the seven-day reverse repo rate) by 25 basis points (bps) to 5.75 percent at the two-day policy meeting that was concluded on Thursday (26-27 September 2018). Also the deposit facility and lending facility rates were raised by 25 bps to 5.00 percent and 6.50 percent, respectively.
