Opinions about the growth prospects of Indonesia's property sector in 2014 have turned rather negative amid the country's slowing economic expansion, tighter monetary policy (mortgage restrictions and higher down payment rules), the depreciating rupiah and uncertainties about the country's legislative and presidential elections in mid-2014. In 2012 and the first half of 2013, Indonesia's property sector had been investors' darling showing spectacular growth amid a booming economy, high housing demand and a low interest environment.

Read more ›

After experiencing slowing growth in recent months, Indonesian cement sales in October 2013 increased 7.9 percent (year-on-year) to 5.58 million metric tons according to data from the Indonesia Cement Association (ASI). As such, cement sales rebounded from the 5.3 percent growth (yoy) in the previous month. The October growth rate was mainly caused by increased cement demand from islands other than Java. In particular, demand from Sumatra rose significantly. Indonesia's second most populous island bought 1.15 million tons of cement.

Read more ›

Fitch Ratings, one of the three major global rating agencies, affirmed Indonesia's sovereign credit rating at BBB- with a stable outlook. In a press release, the rating agency mentioned four key factors that led to the affirmation of the sovereign rating. These are: good policy management by Indonesia's central bank (Bank Indonesia) and government amid external pressures, relatively high economic growth, prudent fiscal management (resulting in low public debt), and a strong banking sector (confirmed by multiple stress tests).

Read more ›

Agus Martowardojo, Governor of Indonesia's central bank, expects the Indonesian economy to consolidate in 2014. The country is currently experiencing an economic correction with GDP growth slowing to 5.62 percent in the third quarter of 2013. Martowardojo said that the current account deficit still needs time to reach a healthy level. Indonesia's current account deficit stood at USD $8.4 billion (equivalent to 3.8 percent of the country's GDP) in the third quarter of 2013, down from USD $9.8 billion (4.4 percent of GDP) in the second quarter.

Read more ›

Agus Martowardojo, Governor of Indonesia's central bank (Bank Indonesia), stated that the country's economy is expected to grow 5.7 percent in 2013. Bank Indonesia believes GDP growth in the fourth quarter of 2013 to fall below the growth figure realized in Q3-2013 (5.62 percent). Martowardojo said that the government needs to continue measures to improve the country's exports, while trying to curtail imports of oil and gas as domestic demand for fuels remained high, even after the increase in prices of subsidized fuels in June 2013.

Read more ›

Indonesia's unemployment rate rose slightly in August 2013 from the same month last year. The country's open unemployment rate rose from 6.14 percent to 6.25 percent (of the total labour force). In absolute numbers this translates to 7.4 million jobless Indonesians. Head of Statistics Indonesia, Suryamin, said that Indonesia's slowing economic growth was the main reason for the rise in unemployment, while the supply of human resources increased. In the third quarter of 2013, Indonesia's GDP growth fell to 5.62 percent (yoy).

Read more ›

The Indonesian government is in the process of revising the country's Negative Investment List (the list that states which sectors of the economy are closed to foreign investment). Head of the Indonesia Investment Coordinating Board (BKPM), Mahendra Siregar, said that a number of (sub) sectors, previously closed to foreign investment, will be opened up this year. These sectors include telecommunication, financial institutions, pharmaceuticals, tourism, airport and seaport transportation services and management, healthcare, and advertising.

Read more ›

Today (06/11), Statistics Indonesia announced that Indonesia's gross domestic product (GDP) expanded 5.62 percent in the third quarter of 2013 from the same period in 2012. The result implies the continuation of Indonesia's slowing economic growth as Q3-2013 constitutes the fifth consecutive quarter in which the country recorded slowing economic growth. Previously, the government had already expressed its concern about the GDP growth figure in Q3-2013 because the current high inflation rate curbs household consumption.

Read more ›

Perry Warjiyo, Deputy Governor of Indonesia's Central Bank (Bank Indonesia), expects that the inflation rate in October 2013 will fall below 0.26 percent (which is the average October inflation rate since 2007). Warjiyo said that a survey of Bank Indonesia indicated that up to the third week of October, inflation had only reached 0.06 percent. Low inflation - or preferably deflation - is needed to curb Indonesia's current high inflation rate. In September 2013, annual inflation was recorded at 8.40 percent.

Read more ›

Moody's Investors Service, one of the big credit rating agencies, stated in its 'Credit Analysis: Indonesia' report that - despite the ongoing current account deficit (which is considered to be structural) and a relatively shallow and volatile domestic capital market (which contributes to Indonesia’s reliance on external funding) - the agency is positive about Indonesia's outlook due to its growth prospects, narrow fiscal deficits and low public debt. Indonesian government bonds are rated at Baa3, which is Moody's lowest investment-grade status.

Read more ›

Indonesia’s economic growth in the fourth quarter of 2024 was slightly better than we had anticipated. Just prior to the release of Indonesia’s gross domestic product (GDP) data on 5 February 2025 (by Badan Pusat Statistik, BPS), we revised our outlook for Indonesia’s Q4-2024 economic growth from 5.0 percent year-on-year (y/y) to the range of 4.9–5.0 percent (y/y) due to a number of weaker-than-estimated macroeconomic data.

Read more ›

We are gradually approaching the first 100 days in office of the new administration in Indonesia (under the leadership of President Prabowo Subianto). Does that show in the latest economic indicators?

Read more ›

As usual, we devote one article to the latest available (key) macroeconomic data in an effort to assess the state of the Indonesian economy. In the previous article in this month’s report, we discussed the 4.95 percent year-on-year (y/y) GDP growth rate of Indonesia in Q3-2024. In the article you are reading right now, we’re going to take a closer look whether the country’s economic growth can accelerate (or decelerate) in the last quarter of the year.

Read more ›

On Friday (06 December 2024), Indonesia Investments released the November 2024 edition of its monthly report. It zooms in on the most relevant economic, social and political developments that occured in Indonesia in the month of November 2024.

Read more ›

Before we zoom in on Indonesia, it is worth taking a closer look at the latest reports released by the International Monetary Fund (IMF). In its World Economic Outlook (released in October 2024), the IMF stated that global economic growth is expected to remain stable, yet underwhelming, at 3.2 percent year-on-year (y/y) in 2024.

Read more ›

As usual, we look at the latest available macroeconomic data of Indonesia to assess the strength of the national economy. Those who follow this monthly article should know that we are quite optimistic about the Indonesian economy as the majority of data are showing positive trends.

Read more ›

Indonesia’s economic growth in the second quarter of 2024 (Q2-2024) was good, although slightly below our projection of 5.1 percent year-on-year (y/y). According to the latest gross domestic product (GDP) data, which were released by Indonesia’s Statistical Agency (in Indonesian: Badan Pusat Statistik, BPS) on 5 August 2024, the Indonesian economy expanded by 5.05 percent (y/y) in Q2-2024.

Read more ›

Before we take a look at the latest macroeconomic data from Indonesia, first there is some good news to share as both the Organization for Economic Cooperation and Development (OECD) and Asian Development Bank (ADB) decided to revise up their projections for the Indonesian economy in 2023.

Read more ›

As usual, we take a look at a number of macroeconomic indicators to assess the state of the Indonesian economy ahead of the release of Q2-2023 gross domestic product (GDP) data (we expect Indonesia’s Statistical Agency, or BPS, to release the data in the second week of August 2023).

Read more ›

On 5 May 2023, Indonesia’s Statistical Agency (Badan Pusat Statistik, BPS) released the latest official Gross Domestic Product (GDP) data of Indonesia. BPS announced that the Indonesian economy expanded by 5.03 percent year-on-year (y/y) in Q1-2023, a good result that is in line with our expectations.

Read more ›