The central bank of Indonesia (Bank Indonesia) announced that the country's foreign exchange reserves fell to USD $111.5 billion at the end of November 2016, from USD $115.0 billion in the preceding month. The USD $3.5 billion decline was caused by Bank Indonesia's efforts to stabilize the rupiah exchange rate as well as the government's external debt repayments. Despite the decline, Bank Indonesia regards the current level of forex reserves as healthy.

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The central bank of Indonesia (Bank Indonesia) informed that around IDR 30 trillion (approx. USD $2.26 billion) of capital outflows from Indonesia occurred after Donald Trump was chosen as 45th US president in November. His victory caused a high degree of uncertainty about future US political and economic policies, while markets also expect to see a stronger US economy as Trump is expected to focus on the interests of the USA, and not so much on its impact on the international community.

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The central bank of Indonesia (Bank Indonesia) announced that the nation's current account deficit (CAD) eased to 1.83 percent of gross domestic product (GDP) in the third quarter of 2016, improving from a revised 2.2 percent of GDP deficit in the preceding quarter. Bank Indonesia further informed that the CAD will most likely remain in the range of 2.0 - 2.5 percent of GDP in full-year 2016. In 2015 Indonesia's CAD eased to 2.1 percent of GDP. Since late-2011 Southeast Asia's largest economy has had to cope with a wide current account deficit.

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The Financial System Stability Committee (in Indonesian: Komite Stabilitas Keuangan, or KSSK) stated that Indonesia's economy is stable. The KSSK further informed that it will raise efforts to enhance market confidence in Indonesia's financial sector. The KSSK, an Indonesian institution that is responsible for preventing financial crises, consists of a selection of key policymakers from the Finance Ministry, Bank Indonesia, Financial Services Authority (OJK) and Deposit Insurance Corporation (LPS).

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The central bank of Indonesia (Bank Indonesia) expects Indonesia's current account deficit to have improved to below 2 percent of the country's gross domestic product (GDP) in the third quarter of 2016. This is good news as a wide (and structural) current account deficit is considered a financial weakness because it means the country is building up liabilities to the rest of the world. Ever since late-2011 Indonesia has been suffering a wide current account deficit. This is particularly attributed to the globe's low commodity prices after 2011.

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According to the latest survey of Indonesia's central bank (Bank Indonesia), consumer confidence in Southeast Asia's largest economy fell 3.3 points to 110 in September 2016 (a reading above 100.0 indicates optimism). Consumer confidence somewhat weakened as the Indonesian people expect upward price pressures at the year-end, specifically rising prices of processed food, beverages, cigarettes, tobacco and groceries. Meanwhile, respondents also expect to put less money in savings in the next six months.

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Agus Martowardojo, Governor of Indonesia's central bank (Bank Indonesia), says there remains room for monetary easing in Southeast Asia's largest economy in the last few months of 2016, provided that both the domestic and global context remain conducive. However, Martowardojo did not specify what this monetary easing exactly entails: a lower key interest rate, cutting the primary minimum statutory reserves (in Indonesian: giro wajib minimum primer), or macro-prudential policy easing? Whatever the move may be, it will for sure be data-dependent, Martowardojo emphasized.

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The central bank of Indonesia (Bank Indonesia) reported that the country's foreign exchange reserves rose by USD $2.1 billion to USD $113.5 billion in August 2016 on the back of tax revenues, oil and gas export earnings, the withdrawal of public foreign debt, and the selling of foreign currency-denominated Bank Indonesia Securities (SBBIs). Inflows of foreign currency exceeded the amount that Indonesian authorities had to pay for foreign debt settlements and maturing SBBIs.

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At the latest policy meeting, Indonesia's central bank (Bank Indonesia) not only adopted a new benchmark monetary tool (the BI seven-day reverse repo rate) but also announced that it cut its forecast for economic growth in 2016. Earlier, Bank Indonesia estimated Indonesia's GDP growth in full-year 2016 in the range of 5.0 - 5.4 percent (y/y). However, it slightly cut its projection to the range of 4.9 - 5.3 percent (y/y) due to the government's decision to curtail expenditure by IDR 133.8 trillion (approx. USD $10.1 billion).

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The central bank of Indonesia (Bank Indonesia) announced today (14/07) that the nation's foreign exchange reserves rose by USD $6.2 billion to USD $109.8 billion in June 2016. The rise was supported by foreign exchange receipts, primarily from the issuance of government US dollar-denominated bonds, the auction of Bank Indonesia foreign exchange bills, tax revenues, oil & gas export earnings, as well as the withdrawal of foreign-denominated government loans.

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On Thursday 12 June 2014 it was decided at the central bank’s Board of Governors’ Meeting to maintain the country’s benchmark interest rate (BI rate) at 7.50 percent, with the Lending Facility rate and Deposit Facility rate held at 7.50 percent and 5.75 percent, respectively. This decision is consistent with ongoing efforts to steer inflation back towards its target corridor of 4.5±1 percent in 2014 and 4.0±1 percent in 2015, as well as to reduce Indonesia’s current account deficit to a more sustainable level.

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Although at the end of Wednesday’s trading day (11/06) Indonesia’s benchmark stock index (known as the Jakarta Composite Index or IHSG) was up, the index had been moving in the red zone during most of the day. Moreover, the index did not get support from the Indonesia rupiah exchange rate nor did it get support from Asian stock indices which tended to decline after yesterday’s weakening indices on Wall Street. Fortunately, foreign investors recorded net buying, thus contributing to the 0.52 percent growth of the IHSG to 4,971.95 points.

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The Indonesian rupiah exchange rate appreciated slightly on Wednesday (11/06). According to the Bloomberg Dollar Index, the currency of Southeast Asia’s largest economy appreciated 0.04 percent to IDR 11,810 per US dollar. Reuters reported that the euro zone's monetary easing in combination with the recent improvement in China's economy offset the impact of higher US yields on Asia. However, investors are still waiting for several data, including the BI interest rate, the Eurozone’s industrial production, and US retail sales.

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Just as unexpected as yesterday when the benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) fell 1.06 percent amid positive domestic and international circumstances, the IHSG made a surprise rebound on Tuesday’s trading day. Yesterday’s fall was exorbitant and unfounded and today market participants made up for that performance by accumulating stocks that had lost value. As a result the IHSG gained 1.25 percent to 4,946.09 points on Tuesday (10/06).

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Although the business community in Indonesia requests that the country’s benchmark interest rate (BI rate) is lowered at Bank Indonesia’s next Board of Governor’s Meeting (scheduled for Thursday 12 June 2014), it is highly unlikely that the central bank will alter its BI rate which currently stands at 7.50 percent. The relatively high BI rate curbs business expansion and therefore limits higher economic expansion in Indonesia. However, several factors justify the continuation of the BI rate at 7.50 percent.

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The central bank of Indonesia (Bank Indonesia) expects Indonesia’s economy to grow by 5.3 percent in the second quarter of 2014. If realized, it means that gross domestic product (GDP) of Southeast Asia’s largest economy will accelerate from the disappointing GDP growth result recorded in the first quarter of 2014 (5.21 percent). Perry Warjiyo, Deputy Governor at Bank Indonesia, said that growth in Q2-2014 will be primarily supported by household consumption and investments which traditionally peak in the second quarter.

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According to Statistics Indonesia (BPS), the country's balance of trade in April 2014 recorded a deficit of USD $1.96 billion, after having recorded a surplus of USD $0.67 billion in March. The balance of trade performance in April 2014 was particularly affected by the country's non-oil & gas balance, which turned from a surplus into a deficit, whereas a lower deficit in the oil & gas trade balance was realized (compared to March 2014). Meanwhile, inflation in May 2014 was slightly higher at 0.16 percent (mtm) from the previous month.

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Contrary to most Asian stock indices, the benchmark stock index of Indonesia (known as IHSG or the Jakarta Composite Index) declined on Thursday (08/05). Positive sentiments that were provided by the BI rate (Indonesia's benchmark interest rate) that was kept at 7.50% in today's Bank Indonesia Board of Governors' Meeting, and China's higher-than-expected trade balance in April 2014 (USD $18.5 billion), were offset by the depreciating rupiah exchange rate and foreign net selling of Indonesian stocks. The IHSG fell 0.02 percent to 4,860.89 points.

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The central bank of Indonesia (Bank Indonesia) decided at today’s Bank Indonesia Board of Governors’ Meeting, convened on 8 May 2014, to maintain the country's benchmark interest rate (BI rate) at 7.50 percent, with the Lending Facility rate and Deposit Facility rate held at 7.50 percent and 5.75 percent respectively. This policy is consistent with efforts to steer the rate of inflation towards its target corridor of 4.5±1 percent in 2014 and 4.0±1 percent in 2015, as well as to reduce the current account deficit to a more sustainable level.

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The central bank of Indonesia (Bank Indonesia) stated that the country's inflation outcome in April 2014 is further evidence of a continuing downward trend. In fact, Indonesia's consumer price index (CPI) in April recorded deflation of -0.02 percent month-to-month (mtm) or 7.25 percent year-on-year (yoy), thus easing compared to 0.08 percent (mtm) of inflation or 7.32 percent (yoy) in March 2014. Since January 2014, Indonesia has now recorded moderating inflation, both on a monthly and annual basis.

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