BOTTOM LINE: Two consecutive months of deflations did not help strengthening rupiah, which remained volatile on a weakening trend due to capital outflows. Bank Indonesia’s decision to hold the interest rate policy is an appropriate trade-off. Manufacturing entered early level of expansionary phase. It is a momentum to carefully recover the economy amid the underperformed…
Economy: Indonesia’s official reserve assets increased to a record high of US$137.0 billion at the end of August 2020 from USD135.1 billion at the end of July 2020In its statement, the central bank said that the position of official reserve assets was equivalent to finance 9.4 months of imports or 9.0 months of imports and…
Economy: Only a month left for Indonesia to make an economic turnaround after experiencing a 5.32 percent contraction in the second quarter due to the economic impact of the coronavirus pandemic. President Joko Widodo told such a reminder to all 34 governors on Tuesday last week. If the third quarter results in a contraction cycle,…
Economy: Indonesian Finance Minister predicted that the country’s economic growth in the third quarter would undergo contraction. “The economic growth would also be still under the neutral growth in the fourth quarter because efforts to recover economic activities are still very weak,” the minister told a working meeting with the House of Representatives on 3…
Economy: Fitch Ratings (Fitch) has affirmed Indonesia’s Sovereign Credit Rating at BBB with a stable outlook. According to Fitch, key factors that support the affirmation are a favorable medium-term growth outlook and a low government debt/GDP ratio. On the other hand, Fitch underscores challenges including a high dependence on external financing, low government revenue, and…
BOTTOM LINE: In a nutshell, the Indonesian economic situation has yet to demonstrate signs of recovery up to mid-August. The deflation in July signifies weak demand and purchasing power. Low inflation does not help to strengthen rupiah, which was volatile over July and on a depreciating trend in two weeks of August. While manufacturing improved…
Economy: Indonesia’s efforts to support its economy through the coronavirus crisis were being hampered by the slow disbursement of a US$50 billion stimulus plan. Meanwhile, millions more people risk being plunged into poverty amid the pandemic, as data showed the economy shrank for the first time since 1999 in the second quarter. Five months after…
Economy: Indonesia’s economy contracted for the first time in over two decades in the second quarter of 2020 by a bigger than expected 5.32% from a year ago. It was the first contraction since 1999. The data showed a broad-based fallout from the Covid-19 pandemic and restrictions to contain its spread. Households curbed spending and…
Economy: The Asian Infrastructure Investment Bank (AIIB) said that the Indonesian economy has huge potential to recover from the impacts the Covid-19 pandemic. Indonesia is not the only nation to be reeling from the unprecedented pressure since nearly all countries worldwide are also facing a similar situation, elicited by the novel pandemic. Indonesia has its…
Economy: Considering that the impact of Covid-19 pandemic would continue, the Indonesian government, through the Fiscal Policy Agency (BKF) of Finance Ministry, is preparing the National Economic Recovery (PEN) Program for 2021. According to BKF, allocation for the 2021 PEN Program involves a focus on social protection, MSMEs, as well as sectoral ministries and institutions…