It will affect on those companies betting on Indonesia e.g. Courts Asia...
Cooling demand, lower exports ‘will hit Indonesia’s growth’
JAKARTA — The World Bank has cut its forecast for Indonesia’s economic growth this year as it anticipates cooling domestic demand and commodity exports.
Growth in South-east Asia’s largest economy will probably slow to 5.9 per cent from an earlier forecast of 6.2 per cent, according to a quarterly report released in Jakarta. The Washington-based lender also lifted its annual inflation forecast for the country to 7.2 per cent after the government raised fuel prices last month.
The World Bank’s estimates add to predictions that Indonesia’s first price increase for subsidised fuel in five years will dampen expansion, with Bank Mandiri saying last week that profit and loan growth will be hurt by higher interest rate and energy costs. Easing investment growth and exports that have declined for over a year add to the challenge, with a persistent trade deficit contributing to a 3 per cent drop in the rupiah this year
Indonesia grows at slowest pace in nearly 3 years in Q2
JAKARTA – Indonesia’s economy grew at its slowest rate for almost three years in the second quarter, adding to concerns that one of Asia’s most vibrant economies is losing some of its steam.
The statistics bureau announced on Friday that GDP growth in the April-June period was 5.81 per cent, its lowest since the third quarter of 2010 and below a Reuters poll of economists, which predicted a 5.95 per cent rise from a year earlier.
The latest quarter was the fourth straight in which the growth pace slipped
The new measure of President Yudhoyono on Indonesia's economic...
Indonesia aims to boost domestic demand: Budget
JAKARTA - Indonesia will prepare a stimulus package to encourage companies to avoid lay-offs and will keep Southeast Asia’s biggest economy attractive to investors, President Susilo Bambang Yudhoyono said on Friday.
The president, in his 2014 budget speech to Parliament, said his government would make “extra efforts” to get high inflation under control and - in line with earlier comments by his Finance Minister - would emphasise promoting domestic consumption to offset the impact of weaker exports.
Mr Yudhoyono did not elaborate on what might be in the stimulus programme for companies, which he called a “Keep Buying Strategy”.
Domestic demand accounts for about 50 per cent of the Indonesian economy, and there are worries that it could slide because of inflation, which hit a four and a half year high of 8.61 per cent in July.
Indonesian consumer confidence falls 14-month low in July
JAKARTA – Indonesia’s July consumer confidence index fell to the lowest level since May last year, and follows a sharp rise in fuel prices in late June, a Bank Indonesia survey showed on Monday.
The July index was 108.4, down from 117.1 the previous month and compared to 109.0 in May last year.
A reading above 100 indicates that consumers in general are optimistic
Indonesian stocks plunge 5.6% on current account gap, weak rupiah
JAKARTA - Indonesian stocks plunged on Monday as investors cashed out amid worries that the country’s widening current-account deficit and dwindling foreign exchange reserves signal the end of strong growth in Southeast Asia’s largest economy, Dow Jones Newswires reported.
The Jakarta Composite Index closed down 5.6 per cent, with foreign investors net sellers of US$162 million (S$207 million) of stocks. Meanwhile, the rupiah fell to a new four-year low of 10,520 to the US dollar.
Bank Indonesia said on Friday that the nation’s current-account deficit had widened to US$9.8 billion during the second quarter of the year, from US$5.8 billion in the previous quarter. The deficit shot up more than economists had expected due to rising imports, falling export proceeds and a jump in overseas travel by Indonesians, economists said.
Last week, the central bank said foreign exchange reserves fell to US$92.67 billion in July from US$98.09 billion a month earlier, as the Bank Indonesia had to sell US dollars in an attempt to shore up the rupiah.
(19-08-2013, 10:00 PM)felixleong Wrote: Wow this looks pretty bad, seems like Asia is starting to hit a road bump
Even thailand slipped into a recession already
with hot money findings it way home back to US, asia economies may feel more pressure coming
Yes, the next likely moment of truth is mid Sept FOMC's meeting. Mr. Market is speculating and waiting..., IMO
(19-08-2013, 10:00 PM)felixleong Wrote: Wow this looks pretty bad, seems like Asia is starting to hit a road bump
Even thailand slipped into a recession already
with hot money findings it way home back to US, asia economies may feel more pressure coming
Yes, the next likely moment of truth is mid Sept FOMC's meeting. Mr. Market is speculating and waiting..., IMO
First in line to be hit will be those properties theme in Indonesia, look at lippo subdiaries, first reit and lippomall...
Lower rupiah = lower properties valuation = higher gearing = fear = selldown = possible bargains ?
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