Below is a list with tagged columns and company profiles.

Latest Reports Federal Reserve

  • Indonesian Rupiah Strengthens Sharply Despite Pessimistic Projection

    The Indonesian rupiah is strengthening remarkably against the US dollar on Monday (21/12) despite expectation that the rupiah will become the worst-performing Asian currency in 2016 on capital outflows (amid more US interest rate hikes planned for 2016), Indonesia's falling foreign exchange reserves, and persistent low commodity prices. Based on the Bloomberg Dollar Index the Indonesian rupiah had appreciated 1.13 percent to IDR 13,760 per US dollar by 14:20 pm local Jakarta time on Monday (21/12).

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  • Indonesia's Jakarta Composite Index Plunges, Rupiah Strengthens

    Stock indices in Southeast Asia plunged on Friday (18/12), led by benchmark indices in Thailand and Indonesia. These Asian markets followed the global correction that occurred after investors weighed in the possible impact of the Federal Reserve's interest rate hike. US and European stocks dropped on Thursday and Friday, while prices of oil and other commodities continued to slide. Indonesia's Jakarta Composite Index fell 1.92 percent to 4,468.65 points.

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  • Indonesian Stocks & Rupiah Update: Outflows after Relief Rally

    After the rally on Thursday (responding positively to the Federal Reserve's announcement to raise its Fed Fund Rate), Indonesian assets are weakening on Friday (18/12) while most other Asian markets are down. Indonesia's benchmark Jakarta Composite Index was down 1.20 percent to 4,501.34 points by 09:45 am local Jakarta time, while the Indonesian rupiah had depreciated 0.22 percent to IDR 14,040 per US dollar (Bloomberg Dollar Index). As such, Indonesian stocks are following the example of US stocks that plunged overnight.

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  • Bank Indonesia Leaves Interest Rate Unchanged at 7.50%

    Bank Indonesia, the central bank of Southeast Asia's largest economy, kept its key interest rate (BI rate) at 7.50 percent at the December policy meeting on Thursday (17/12). Meanwhile, the overnight deposit rate facility (Fasbi) was left unchanged at 5.50 percent and the lending facility at 8.00 percent. It was the tenth consecutive month without changing the country's interest rate environment (in February 2015 the central bank cut the BI rate by 0.25 percent).

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  • Indonesian Stocks & Rupiah Strengthen after US Rate Hike

    Indonesian stocks and the rupiah responded highly positive to the decision of the US Federal Reserve to raise its key Fed Fund Rate by 25 basis points on Wednesday (16/12). Indonesia's benchmark stock index (Jakarta Composite Index) soared 1.62 percent to 4,555.96 points, while the rupiah appreciated 0.44 percent to IDR 14,009 per US dollar. Not only in Indonesia but also globally stocks thrived on the ending of prolonged uncertainty about the timing of the US interest rate hike.

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  • How Asian Stocks & Currencies React to the Federal Reserve's Interest Rate Hike

    The US Federal Reserve finally decided to raise the Fed Fund Rate by 25 basis points at its December policy meeting (15-16 December) on a considerable improvement in US labor market conditions (the US unemployment rate having fallen to 5 percent) and US inflation projected to meet the Fed's 2 percent target over the medium term. After this announcement US stocks soared. Emerging markets were not hit by severe capital outflows after the rate hike. Asian stock indices strengthened sharply on Thursday morning (17/12).

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  • Indonesia Stock Market & Rupiah Update: Ahead of Fed Meeting Asia Weakens

    Stock markets in Asia are experiencing rough weather as investors pull funds out of emerging markets. By 11:25 am local Jakarta time, Indonesia's benchmark Jakarta Composite Index had plunged 1.11 percent to 4,344.69 points, while the rupiah had depreciated 0.54 percent to IDR 14,068 per US dollar (Bloomberg Dollar Index). Investors are seeking safe(r) haven assets as the Federal Reserve is expected to raise its key Fed Fund Rate (for the first time in almost a decade) at its next FOMC meeting (scheduled for 15-16 December).

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  • Indonesian Stocks & Rupiah Weaken Ahead of Fed Fund Rate Decision

    On the last trading day of the week, Indonesian stocks plunged 1.63 percent to 4,393.52 points, while the rupiah depreciated 0.22 percent to IDR 13,984 per US dollar (Bloomberg Dollar Index). Most Asian indices were weaker as investors are bracing for - most likely - the first Fed Fund Rate hike in nearly a decade. On 15-16 December the US Federal Reserve will hold a crucial policy meeting. Tighter monetary policy in the USA leads to capital outflows from Indonesia as the country is regarded particularly vulnerable to such a move.

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  • Indonesia Stock Market & Rupiah Update: What Happened Today?

    Asian stock indices - including Indonesia's benchmark Jakarta Composite Index which reopened after a market holiday - were mostly in red territory on Thursday (10/12) as investors are cautious ahead of the looming US interest rate hike, expected to be decided upon at the Federal Reserve's next policy meeting (15-16 December), as well as low oil prices and falling US stocks overnight. Moreover, the central bank of China allowed its yuan to depreciate further (to a near four-month low), hence resulting in the resurgence of some fears of a currency war in Asia.

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  • Currency Update: Indonesian Rupiah Heading towards 14,000/USD

    The Indonesian rupiah is again flirting with the IDR 13,900 per US dollar level after the central bank announced on Monday (07/12) that Indonesia's foreign exchange reserves fell further in November. Based on the Bloomberg Dollar Index, the rupiah had depreciated by 0.19 percent to IDR 13,887 per US dollar at 15:30 pm local Jakarta time on Tuesday (08/12). Other factors that put pressure on the rupiah are the low oil price (giving rise to a strong US dollar), weak trade data from China, and the looming US interest rate hike.

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Latest Columns Federal Reserve

  • Indonesia's Benchmark Stock Index (IHSG) and Rupiah Continue Its Fall

    On Thursday (22/08), Indonesia's main stock index (IHSG) was not able to continue the rebound that occurred yesterday when the country's biggest pension fund, Jamsostek, began buying blue-chip stocks in a move to support the ailing index. Indonesia's benchmark index has now lost about 20 percent since its record peak in May 2013. Today, it fell 1.11 percent to 4,171.41 points. Eight sectoral indices weakened, of which the top losers were construction (-5.78 percent), basic industry (-3.42 percent), and finance (-2.39 percent).

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  • Concern over Ailing Rupiah Intensifies; Government Prepares Package

    Concerns about Indonesia's weakening rupiah intensified on Wednesday (21/08) as the currency is now balancing on the psychological boundary of IDR 11,000 per US dollar. The rupiah continued its downward spiral today although its decline was limited due to the intervention of Indonesia's central bank (Bank Indonesia) that started selling US dollars again in an effort to support the rupiah. According to data compiled by Reuters, the rupiah has now fallen 10.7 percent this year.

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  • Indonesia Stock Index (IHSG) and Rupiah Are Extending its Losing Streak

    On Tuesday (20/08), Indonesia's benchmark stock index (IHSG) continued its decline with its fourth consecutive day of losses. Amid major concerns about Indonesia's economic growth, high inflation, tighter monetary policy and current account deficit, the IHSG fell 3.21 percent to 4,174.98 points. It means that the index now stands about 21 percent lower than its record peak in May 2013. Foreign investors have been pulling money out of the Indonesian market. According to Bloomberg, about USD $255 million has been retracted in the last two days.

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  • Profit Taking Turns Indonesia's Stock Index (IHSG) to Red Territory

    After two days of growth, Indonesia's main stock index (IHSG) became victim of profit taking on Thursday (15/08). Particularly domestic investors were eager to sell their Indonesian assets. Falling indices on Wall Street on Wednesday (14/08) in combination with global uncertainty about the end of the Federal Reserve's quantitative easing program made a negative impact on Asian stock indices, including the IHSG. Indonesia's central bank's decision to keep its benchmark interest rate at 6.50% was well-received by most investors.

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  • Possible End to Quantitative Easing Will Impact on Emerging Economies

    Worldwide, most stock indices fell on Wednesday (07/08), particularly Japan's Nikkei index, after it has been speculated that the Federal Reserve may phase out the third round of its quantitative easing program in September 2013. This program, involving a monthly USD $85 billion bond-buying package, aims to spur US economic growth while keeping interest rates low. However, one important side effect has been rising stock markets around the globe. Now the end of QE3 is in sight, investors shy away from riskier assets.

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  • Indonesia's Main Stock Index Rises 0.36% on Last Day before Holiday

    On the last day before a week-long holiday, Indonesia's main stock index (IHSG) rose by 0.36 percent to 4,640.78 points on Friday (02/08). Although it was a relative quiet trading day, the performance was in line with today's performance of other Asian indices as well as European and American indices on Thursday (01/08). Stocks in the country's basic industries sector provided most support to the rise of the index. The Asian market still felt the positive impact of the Federal Reserve's announcement that it will continue the quantitative easing program.

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  • Despite High July Inflation and Trade Deficit, Indonesia's IHSG Slightly up

    As I stated before, mixed sentiments continue to influence the performance of Indonesia's main stock index (IHSG). During Thursday's trading day (01/08), the index moved sideways. News that the Federal Reserve intends to continue its bond-buying program made a good impact. However, this positive sentiment was offset by the release of Indonesia's high July inflation rate as well as the country's continued trade deficit. At the end of the day, the IHSG managed to post a gain as it received support from rising stock indices in Asia.

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  • Most Stock Indices Are Waiting for Results of the Federal Reserve Meeting

    Despite being up at the start of the trading day, Indonesia's main stock index (IHSG) was under pressure for the remainder of Wednesday (31/07) due to investors' appetite for profit taking. Indonesian company reports (Semester I-2013) were mixed and, in combination with other mixed Asian indices, it made many investors wait and see for the meeting of the Federal Reserve first. Asian indices suffered because of Malaysia's and India's downgrade by Fitch Ratings. This triggered speculation whether Indonesia's outlook will be cut as well.

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  • Amid Weak Asian Indices Jakarta Composite Index Falls 1.68% on Monday

    In line with the trend in the Asia-Pacific region, Indonesia's main stock index (IHSG) fell 1.68 percent to 4,580.47 on Monday (29/07). All sectoral indices weakened. The worst performing sectoral indices were mining, consumer goods and miscellaneous industries, falling 2.44 percent, 2.30 percent and 2.08 percent respectively. The value of transactions was also rather small at IDR 3.12 trillion (USD $305.9 million), while foreign investors continued to record net sales amounting to IDR 379.3 billion (USD $37.2 million). 

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  • Indonesia's Benchmark Index (IHSG) Rises 1.88% on Tuesday

    Yesterday's rising indices on Wall Street, high expectations of companies' financial reports and positive statements regarding economic growth in China resulted in a good day at the Indonesia Stock Exchange (IDX). Indonesia's main stock index, the IHSG, rose 1.88 percent to 4,767.16 on Tuesday (23/07), even though technical indicators seemed to predict a weakening of the index. Also the continued fall of the Indonesian rupiah did not turn investors away from the market. In fact, foreign investors were net buyers of Indonesian stocks.

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