On Monday evening (09/06), the first debate between Indonesia’s two presidential candidates (joined by their running mates) was held and broadcast live on national television by various Indonesian television stations. This debate is the first in a series of five debates in which both teams - Joko ‘Jokowi’ Widodo and Jusuf Kalla vs Prabowo Subianto and Hatta Rajasa - are able to share their vision and mission to the Indonesian electorate. The debate immediately became a trending topic on social media.

Read more ›

The Indonesian rupiah exchange rate has appreciated 0.50 percent to IDR 11,779 per US dollar by 16:00pm local Jakarta time on Monday (09/06). This performance is in line with the general trend in Asia where emerging market currencies strengthened against the greenback on today’s trading day. The rupiah is among today’s best-performing emerging currencies as it was boosted by the higher trade surplus of China (one of Indonesia’s most important trading partners) and economic growth in Japan.

Read more ›

With the presidential election of Indonesia (scheduled for 9 July) becoming a battle between Governor of Jakarta Joko Widodo, popularly known as Jokowi, and former army general and Suharto crony Prabowo Subianto, it is worth taking a closer look into the ideas and policies that both candidates would like to implement if elected as the next Indonesian president, as well as their stance on specific economic issues. The viewpoints that are mentioned below are based on the documents that both parties provided to the General Election Commission.

Read more ›

One day after the official announcement that two pairs will compete in the presidential election (9 July 2014), the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) and the Indonesian rupiah exchange rate are still in a state of decline. Although yesterday (19/05) the rupiah and IHSG strengthened considerably prior and shortly after Joko "Jokowi" Widodo declared that Jusuf Kalla would be his running mate (the vice-presidential candidate) in the election, markets have been selling Indonesian assets since Monday afternoon.

Read more ›

In front of the Joang '45 Museum, which illustrates Indonesia's battle for independence, Joko "Jokowi" Widodo (Governor of Jakarta) officially declared that Jusuf Kalla is his running mate (or the vice-presidential candidate) in the upcoming presidential election (scheduled for 9 July 2014). It had been speculated for weeks that Jusuf Kalla (former Indonesian Vice-President, businessman and philanthropist), would be Jokowi's running mate but it was only officially declared just after noon (local Jakarta time) on Monday (19/05).

Read more ›

Although we are still waiting for the official announcement (which is expected to follow shortly), more and more signs are pointing towards the nomination of Jusuf Kalla as the running mate (or vice-presidential candidate) of Jakarta Governor Joko "Jokowi" Widodo in the presidential election that is scheduled for 9 July 2014. The pair will have the full support of the PDI-P, NasDem, PKB and Hanura coalition. The chairmen of the NasDem (Surya Paloh) and PKB (Muhaimin Iskandar) have reportedly confirmed that Kalla will be the running mate.

Read more ›

It is becoming more and more likely that the Golkar party (the second-largest political party of Indonesia based on the legislative election that was held in April 2014), will join the coalition that consists of the PDI-P (winner of the legislative election), NasDem and PKB. This coalition has already announced its full support for highly popular Governor of Jakarta Joko “Jokowi” Widodo as the coalition’s presidential nominee for the presidential election (9 July 2014). The running mate of Jokowi, however, remains a question mark.

Read more ›

Both the Indonesian rupiah exchange rate and the country's benchmark stock index (known as the Jakarta Composite Index or IHSG) have strengthened significantly on Wednesday's trading day (14/05). The rupiah appreciated 0.76 percent to IDR 11,450 per US dollar by 15:00 local Jakarta time according to the Bloomberg Dollar Index. Meanwhile, the IHSG gained 1.09 percent to 4,975.13 by the same time. Main reason for this strong performance is the official declaration of the PDI-P to form a coalition with NasDem and PKB.

Read more ›

Indonesian newspaper Investor Daily reported that on Friday 9 May 2014 Joko Widodo, the presidential candidate of the PDI-P (winner of the April 2014 legislative election), will announce his running mate for the presidential election. According to the newspaper, Surya Paloh - founder of the NasDem party - said that the running mate (vice-presidential candidate) has already been agreed upon although he declined to mention a name. The PDI-P and NasDem formed a coalition last month in order to nominate a presidential candidate.

Read more ›

Although Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) fell immediately after its opening on Monday (28/04), the index is expected to strengthen this week as Joko 'Jokowi' Widodo will announce his running mate for the 2014 presidential election. Jokowi is the presidential nominee of the PDI-P party (the largest opposition party in the Indonesian parliament), which won the legislative election in April 2014 by securing about 19 percent of the popular vote.

Read more ›

The week ended well for both the Indonesian rupiah exchange rate and the benchmark Jakarta Composite Index (IHSG). Based on the Bloomberg Dollar Index, the rupiah appreciated 0.30 percent to IDR 11,413 per US dollar at the end of Friday's trading day (16/05). Meanwhile, the IHSG surged 0.80 percent to finish just above the psychological level of 5,000 points. The good performance was supported by investors' positive response towards the latest political developments in Indonesia.

Read more ›

Joko Widodo, the presidential candidate of the PDI-P (Indonesia's current largest opposition party and which won the 2014 legislative election last April) may announce his running mate (the vice presidential candidate) on Wednesday (14/05). Newsportal Bisnis.com reported that Widodo, popularly known as Jokowi, hinted at this during a brief conversation between Jokowi and journalists on Monday. Names that are frequently mentioned in connection to the position of running mate of Jokowi are Jusuf Kalla and Abraham Samad.

Read more ›

The Indonesian rupiah exchange rate extends its depreciation on Friday (11/04) after market participants showed their concern about Indonesia's legislative election result on Wednesday (09/04). As the election did not result in a clear victory for the PDI-P (the main opposition party which intends to nominate popular Jakarta Governor Joko 'Jokowi' Widodo as presidential candidate), the fragmented outcome is expected to lead to continued political uncertainty ahead of Indonesia's presidential election on 9 July 2014.

Read more ›

The central bank of Indonesia (Bank Indonesia) expects Indonesia's economic growth to slow to 5.77 percent (year-on-year) in the first quarter of 2014. However, despite this further slowing trend, the institution is content with recent macroeconomic developments: external demand is growing, while domestic demand is moderating, thus impacting positively on the country's current account deficit as well as inflation. Household consumption is expected to have grown in Q1-2014 due to the holding of legislative elections on 9 April 2014.

Read more ›

Most emerging market currencies, including the Indonesian rupiah exchange rate, appreciated against the US dollar on Tuesday (08/04) due to carry trade (meaning the selling of low-yield currencies for higher-yielding assets) and expected stimulus from China's government to boost its economy (Chinese shares in fact gained 2.2 percent on this stimulus speculation). The rupiah appreciated 0.14 percent to IDR 11,289 per US dollar based on the Bloomberg Dollar Index, partly due to variety of domestic factors.

Read more ›

On Wednesday 9 April 2014, the Indonesian electorate (consisting of about 190 million people out of a total population of around 250 million) will vote for both the country's national and regional legislatures. This legislative election also bears a big influence on the presidential election that is scheduled for 9 July 2014 as a minimum of 25 percent of the popular vote in the legislative election (or 20 percent of seats in the House of Representatives, DPR) gives a party the authority to nominate a presidential candidate.

Read more ›

The Indonesian government is still studying the feasibility study for the National Capital Integrated Coastal Development (NCICD) masterplan. The NCICD masterplan, a joint project between the governments of Indonesia and the Netherlands, aims to protect the capital city of Jakarta against floods caused by high tides and faciliates sustainable development of Jakarta. The masterplan is developed by a consortium headed by Witteveen+Bos (main contractor) and Grontmij, with subconsultants KuiperCompagnons, Deltares, Ecorys and Triple-A.

Read more ›

Previously we were hoping that if global stock indices would turn positive, it could limit the fall of Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) as the 'Jokowi effect' has definately worn off. On Tuesday (18/03), investors continued to engage in profit taking causing the IHSG to plunge 1.45 percent to 4,805.61 points. While most Asian indices were up, influenced by rising indices on Wall Street and in Europe on the previous trading day (17/03), the IHSG deviated sharply from the Asian trend today.

Read more ›

There were two options with regard to today's trading day (Monday 17 March 2014). First, the Jakarta Composite Index (Indonesia's benchmark stock index also known as IHSG) could rise further after its impressive 3.23 percent jump last Friday (14/03), and secondly, the bullish market could become vulnerable to profit taking as the 'Jokowi effect' tones down and no other factors could trigger positive market sentiments. It turned out to be the second option. Not even sharp rupiah appreciation could push the index in the green zone.

Read more ›

The Indonesian rupiah exchange rate continued its impressive rebound in 2014, supported by Indonesia's improving economic fundamentals as well as increased political certainty due to the nomination of Joko Widodo (Jokowi) as the main opposition party's (PDI-P) presidential candidate. As such, the 'Jokowi effect' managed to offset negative market sentiments brought on by the (disputed) referendum in Crimea that showed that 97 percent of voters support a split from Ukraine. This intensified political tensions between the West and Russia.

Read more ›