A corner of Jakarta capital (Source: Asialink) Jakarta (VNA) – Indonesia’s gross domestic product (GDP) growth could slow to 4.9 percent in 2020 and 4.6 percent in 2022 amid intensifying risks such as the escalating trade tension between China and the US, according to the World Bank. The bank estimated that if the growth rates of China and the US fell by 1 percent, it would trim 0.3 percent off the growth of the Indonesian economy. According to Statistics Indonesia (BPS), Indonesia’s economy – the largest in Southeast Asia – expanded by 5.05 percent in the second quarter of this year, softening from 5.27 percent recorded over the same period last year. The government expects the economy to grow 5.3 percent this year as stated in the 2019 state budget. The World Bank explained that the bleak outlook for Indonesia was driven by the country’s weak productivity and slowing workforce growth. Lower commodity prices due to the global economic slowdown … [Read more...] about World Bank: Indonesia’s economy is facing numerous challenges
Bank indonesia
Bank Indonesia keeps benchmark rate unchanged
BI Governor Perry Warjiyo (Photo: Antara News) Jakarta (VNA) – Bank Indonesia (BI) has kept its benchmark rate unchanged for five consecutive months to safeguard the country’s external balance. Following a two-day board of governors meeting, the central bank announced on April 25 that it kept the seven-day reverse repo rate at 6 percent, and the deposit and lending facility rates were maintained at 5.25 and 6.75 percent, respectively. BI Governor Perry Warjiyo said that the decision is in line with the central bank and government’s efforts to stabilise the economy, adding BI will monitor the latest development in Indonesia’s balance of payment accounts. In addition, the bank also announced several policies to boost growth in domestic demand. Those include holding foreign exchange swap and repo term auctions more frequently, effective from May 6, lowering the cost of its Domestic Non-Deliverable Forward (DNDF) with transaction values up to 5 million USD. BI … [Read more...] about Bank Indonesia keeps benchmark rate unchanged
Indonesia forecasts 2019 growth of 5.1-5.5 percent
Bank Indonesia (BI) has forecast that next year its national economy will grow at almost the same rate as this year’s estimation of 5.1 percent, and domestic consumption will continue to serve as the main engine of growth (Photo: Antara) Jakarta (VNA) – Bank Indonesia (BI) has forecast that next year its national economy will grow at almost the same rate as this year’s estimation of 5.1 percent, and domestic consumption will continue to serve as the main engine of growth. BI Deputy Governor Dody Budi Waluyo stated that based on current conditions, the bank hopes the economy will continue to grow within the same range as it has in 2018. The bank had previously announced that it will downwardly revise its economic growth forecast of 5.1-5.5 percent for 2019. Waluyo said that the current status of economic uncertainty, particularly related to the US-China trade war, will cast a shadow on the global economic growth next year. The global economic growth will … [Read more...] about Indonesia forecasts 2019 growth of 5.1-5.5 percent
Indonesia runs 1.82 billion USD trade deficit in October
Indonesia’s October deficit was recorded at 1.82 billion USD in line with strong domestic demand, according to the Bank Indonesia. (Photo: Antara) Jakarta (VNA) – Indonesia’s October deficit was recorded at 1.82 billion USD in line with strong domestic demand, according to Executive Director of the Bank Indonesia (BI) Communication Department Agusman. “Both the non-oil and gas as well as the oil and gas trade balance contributed to the overall trade deficit. Cumulatively, from January to October 2018, the trade deficit stands at 5.51 billion USD”, Agusman noted. The non-oil and gas trade deficit was estimated at 0.39 billion USD in the period, thus reversing the previous 1.32 billion USD surplus after the non-oil and as import growth surge exceeded the uptick in corresponding exports. Non-oil and gas imports increased 2.39 billion USD as compared to the previous month, driven by raw materials and capital goods such as machinery and mechanical … [Read more...] about Indonesia runs 1.82 billion USD trade deficit in October
Indonesian central bank raises interest rate for sixth time
Illustrative photo (Photo: energitoday.com) Jakarta (VNA) - Indonesia’s central bank on November 15 decided to raise its benchmark interest rate for the sixth time this year to lower the country’s yawning current-account deficit. Bank Indonesia (BI) raised its 7-day reverse repurchase rate by 25 basis points to 6 percent. Seventeen of 19 analysts participating in a Reuters poll forecast that the bank will keep the interest rate unchanged at the upcoming conference. The key rate has now been hiked six times by a total of 175 basis points since May, as BI tried to slow capital outflows triggered by rising US rates and aimed to put a floor under the fragile rupiah. BI Governor Perry Warjiyo said the Indonesian Government is making efforts to stabilise the monetary market. The local currency has seen a strong recovery since early November thanks to confidence in the improvement in the global economic prospects. However, it is facing a risk of depreciating again. In … [Read more...] about Indonesian central bank raises interest rate for sixth time