Monthly Economic Review

BOTTOM LINE: Capital outflows escalated in September and worsened the depreciation of rupiah despite the deflation. Bank Indonesia kept its monetary policy rate at 4 percent in a bid to stabilize the rupiah. Foreign reserves dropped to US$135.1 billion, largely used by the central bank intervening money market for avoiding further weakening of rupiah. In…

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Monthly Economic Review

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. While the expansion could be temporary, it is a momentum to carefully…

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Monthly Economic Review

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…

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Monthly Economic Review

BOTTOM LINE: Reactivating the economy in many regions slightly changes the Indonesian economic state of play. In June, inflation marginally increased and still at much lower level than last year.  The value of rupiah strengthened last month, but it has been weakening over two weeks of July. Stock market moved in volatile way and it…

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Monthly Economic Review

BOTTOM LINE: Taken together, the indicators during May and up until mid-June 2020 indicate that the Indonesian economic state of play remained weak amid the Covid-19 pandemic. The inflation was very low, rupiah and stock index strengthened but face volatilities ahead, manufacturing was on a deep contraction phase, export and import fell sharply, and state…

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Monthly Economic Review

LOWER DEMAND helped to keep the inflation at low level despite Ramadhan fasting month, which normally escalates the general prices. In Apr., inflation only reached 0.08% (m-t-m), fell from 0.1% in Mar. Rupiah’s daily movements was volatile but on an appreciation trend, and it continued until the first week of May. BI remained stand by…

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