Below is a list with tagged columns and company profiles.
Latest Reports Rupiah
The Indonesian rupiah continued its remarkable rally on Tuesday (22/12). The currency had appreciated 0.98 percent to IDR 13,672 per US dollar by 11:10 am local Jakarta time (Bloomberg Dollar Index). The rupiah has recovered from a recent low of IDR 14,123 on Monday 14 December to IDR 13,672 per US dollar, a 3.2 percentage point advance in about one week. There are several matters that explain this remarkable performance.
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).
On 20 December 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as updates on the performance of Indonesian stocks and the rupiah, Indonesia's interest rate environment, the trade balance, the country's energy mix, updates of the performance of listed companies, and more.
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.
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.
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).
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.
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).
In line with expectations and the general trend so far this year, Indonesian car sales fell 4.4 percent to 87,311 units in November 2015. In the January-November 2015 period, the country's total car sales reached 940,317 units, down 16.7 percent from car sales in the same period last year. The main cause of this weak performance is Indonesians' weakened purchasing power amid the country's economic slowdown, high inflation (in the first three quarters of the year), and low commodity prices.
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).
Latest Columns Rupiah
The weak stock indices in Europe and USA at the end of last week had a negative impact on stock indices in Asia on Monday (27/05/13), including Indonesia's main stock index (IHSG). Investors rushed to reduce their stock portfolios, which resulted in an 1.36 percent fall to 5,085.14 points. At the end of last week, the IHSG had formed a green candlestick but today there were no continued positive signals as the market lacked positive sentiments. But a number of rising Asian indices and the positive openings of European stock indices managed to support the IHSG a bit.
Various negative sentiments made investors decide to engage in profit taking today (23/05). As Indonesia's main stock index (IHSG) had already reached the overbought area, it is highly susceptible of profit taking in case some negative news is released. But this time there were quite a lot of matters that made a negative impact: weak American indices on Wednesday (22/05) responding to the FOMC meeting, a spike in Japan's government bond yields, and Chinese manufacturing data that seems to indicate a contraction.
Although Indonesia’s government stresses the need to relieve pressure on the state budget (by raising the price of subsidized fuel next month), it plans to allocate an additional IDR 16.1 trillion (USD $1.65 billion) to this year’s fuel subsidy budget. The additional allocation, which covers fuel, LPG and vegetable fuels, will raise government expenditure on fuel subsidies to IDR 209.9 trillion (USD $21.50 billion) from the IDR 193.8 trillion drafted in the original 2013 state budget (APBN 2013). Total energy subsidies will grow to IDR 309.9 trillion this year.
American stock indices that refrained from staying in the green zone at the end of Monday's trading session (20/05/13) made market participants less enthusiastic to invest in Asian stocks. Indonesia's main stock index (IHSG) was one of the indices that felt this impact as a lack of positive sentiments blocked it from rising to another record high level. Investors were also concerned about profit taking because the index had reached the overbought level. When European indices opened weak on Tuesday it increased downward pressures on the IHSG.
Various reasons explain why Indonesia's main stock index (IHSG) managed to reach another record high on Monday (20/05/13) at 5,214.98 points, an 1.35 percent gain. Foreigners were back chasing Indonesian stocks (particularly blue chips), Asian indices were up (led by Hong Kong's Hang Seng Index), the listing of Bank Nationalnobu (NOBU) which gained 14.67 percent on its first trading day, positive European openings, and the positive response towards Indonesia's new Finance minister, Chatib Basri, regarded as an independent policy maker.
The pace of the upward movement of Indonesia's main stock index (IHSG) was beyond expectation. While American and European stock indices were weak on Thursday (16/05/13) and Hong Kong's HSI as well as South Korea's KOSPI were closed due to holidays, it did not bring a negative impact on the IHSG. Particularly consumer and coal miner stocks supported the IHSG's rise. At the end of Friday's trading day (17/05/13), the IHSG hit a new record high level: 5,154.68 points, an 1.32 percent increase.
Positive American and European stock indices on Tuesday (14/05/13) made a good impact on Asian stock indices on Wednesday (15/05/13), including Indonesia's main index (IHSG) which is heading towards the 5,100 points line. Although many foreign investors were eager to sell their Indonesian assets, support from other Asian stock indices kept the IHSG within the green zone. At the end of the trading day, it stood at 5,089.88 points, a 0.16 percent rise.
On Tuesday (14/05/13), Indonesia's main stock index (IHSG) rose supported by positive Asian stock indices in the first trading session. But this pillar of support did not last for long as the Asian stock indices weakened afterwards, which impacted on the performance of the IHSG. Pressures of profit taking remained as the IHSG is still near its record high level but foreign investors - being net buyers of Indonesian stocks - helped to offset profit taking, resulting in a 0.54 percent gain to 5,081.94 points.
After setting a new record last Friday, Indonesia's main stock index (IHSG) lost its strength on Monday (13/05/13). A number of factors were behind the decline. Foreign investors mostly sold their Indonesian assets as the record high level of the IHSG made it tempting to engage in profit taking. Moreover, the still unclear policy regarding Indonesia's subsidized fuel causes uncertainties. Lastly, Asian stock indices were mixed while European indices opened lower on Monday.
Indonesia's main stock index (IHSG) returned to where it belonged: above the level of 5,000 points. Apparently Moody's threat to downgrade Indonesia's credit rating, as has been done by Standard & Poor's a few days ago, did not leave a big impression on market participants. As a result, the IHSG rose 1.02 percent to 5,042.79 and thus almost repaired the damage done at the end of last week. Other Asian stock indices as well as positive openings in Europe also provided good support today.
Associated businesses Rupiah
