• Monetary Policy Bank Indonesia: Easing the Minimum Statutory Reserves

    Following the announcement last year, the central bank of Indonesia (Bank Indonesia) has again stated that it is to ease the minimum statutory reserves (in Indonesian: giro wajib minimum) regulations for conventional local banks (both for rupiah and foreign-denominated currencies). With this looser approach, banks can manage their liquidity more effectively, which should lead to reduced volatility on the overnight money market ("interest rate buffer").

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  • Bleak Q1-2017 Foreign Direct Investment Growth in Indonesia

    According to the latest data of Indonesia's Investment Coordinating Board (BKPM), growth of foreign direct investment (FDI) in Indonesia in the first quarter of 2017 was recorded at a modest pace of 0.9 percent year-to-year (y/y) to IDR 97 trillion, sliding further from a growth pace of 2.1 percent (y/y) in the preceding quarter. Declining FDI is attributed to the ethnic and religious tensions in Jakarta (surrounding the 2017 Jakarta gubernatorial election) as well as persistent global uncertainties. The FDI data exclude investment in the country's banking and the oil & gas sector.

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  • Solid Corporate Earnings of Indonesia's Large Cap Stocks in Q1-2017

    A number of Indonesian big cap stocks have already released their first quarter 2017 corporate earnings. Most of them show good results and therefore the majority of analysts agree that full-year 2017 corporate earnings of Indonesian companies listed on the Indonesia Stock Exchange should, generally, be good, especially considering economic growth of Indonesia is expected to accelerate further in the remainder of the year. However, some stocks have become expensive particularly after the recent strong performance of Indonesian stocks.

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  • Indonesian Energy Companies in Focus: ABM Investama

    Indonesia Investments updated the company profile of ABM Investama in the Indonesian companies section. ABM Investama, listed on the Indonesia Stock Exchange, is an Indonesia-based holding company that is primarily focused on energy-related sectors, covering coal production, mining contractor services, and power solutions. After two years of net losses the company posted net profit of USD $12.89 million in 2016 supported by cost efficiency improvements in all business lines and the surging coal price in the second half of 2016.

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