Friday Briefing

Economy: S&P Global Ratings revised Indonesia’s credit rating outlook to “negative” from “stable”, indicating the rising financial risks the country faces as it ramps up government spending in response to the Covid-19 pandemic. Previously, S&P had raised Indonesia’s debt rating to BBB in May 2019, on a par with ratings awarded by two other major…

Monday Briefing

Economy: The Covid-19 pandemic has worsened the global economy, making investors prefer holding the greenback as a safe haven, and this condition has raised pressures on the emerging market’s currencies, including the Indonesian currency. The value of rupiah continues to depreciate at least since Indonesian President Joko Widodo on 2 March announced that two Indonesians…

Friday Briefing

Economy: A substantial reduction of Indonesia’s official reserve was recorded in end of March when the reserve dropped to US$121.0 billion, lower than USD130.4 billion as of end-February 2020. The position of official reserve assets was equivalent to finance 7.2 months of imports or 7.0 months of imports and servicing government’s external debt, which is…

Monday Briefing

Economy: Moody’s Investors Services assessed that the handling of Covid-19 pandemic in Indonesia was slower than other Southeast Asian countries, although the economic and financial policies are well coordinated. According to Moody’s, Indonesia’s response to the corona virus outbreak is slower compared with several other countries in Southeast Asia. However, government policies to reduce the…

Friday Briefing

Economy: Finance Minister said that the Indonesian economy is expected to grow by 2.3 percent in 2020, but the government has prepared for a worst-case scenario of a contraction of 0.4 percent. The upper end of the forecast is less than half the government’s earlier projection of 5.3 percent GDP growth this year. The scenarios…

Wednesday Briefing

Economy: Central Bureau of Statistics (BPS) recorded Indonesia’s inflation rate at 0.10 percent in March 2020 (month-on-month). The annual inflation was 2.96 percent, which below 3 percent of the 2020 , meaning that the general price level is still manageable. Inflation occurred due to price hikes, including the prices of food, beverage, and tobacco that…

Monday Briefing

Economy: Following the Covid-19 pandemic, the Economist Intelligence Unit (EIU) has revised its growth forecasts for all countries across the world. The results paint a bleak picture. Across the G20, all but three countries will register a recession this year. The global economy will contract by 2.2%. The global economic picture is looking bleak, with…

Friday Briefing

Economy: Capital worth US$7.9 billion has been flight out from Indonesia’s financial market so far this year – one of the worst capital outflows the country has ever seen – as the Covid-19 pandemic continues to stoke fears in investors’ mind. According to Bank Indonesia (BI), the flow of foreign capital out of Indonesia this…

Wednesday Briefing

Fiscal: The Indonesian government is searching for foreign loans to support the alleviation of Covid-19 pandemic. As the initial stage, the government has got commitment from the Asian Development Bank and the World Bank. The scheme of loans from those two multilateral financial lenders is still in the process of negotiations. On 21 March, the…

Monday Briefing

Economy: The level of Indonesia’s crisis management protocol has been raised to one notch below “crisis”. Finance Minister warned that should COVID-19 pandemic persisted; economic growth could fall to between 0%-2.5%. According to the minister, the baseline scenario was for GDP growth at above 4%, but that if the coronavirus outbreak lasted three to six…