The Story of a New Sheriff in Town...

courtesy bisnis.liputan6.com

This is a short story about a new sheriff in town. 

His name is Agus Martowardojo. 

He has all the power to steer a large territory called "Bank Indonesia". 

Those of you who don't know what Bank Indonesia is, then it's time to wake up...

 It is the country's central bank which has majestic office buildings in the downtown of Jakarta.

Indonesia's Macroeconomic Assumptions for the 2013 Revised State Budget

courtesy sindonews.com

- After a long and arduous discussions between the parliament and the government, some basic macroeconomic assumptions for the 2013 revised state budget have been agreed yesterday. This progress paves the way for the government to immediately raise subsidized fuel prices later this month.

- The assumptions figures are as follows:
a. Economic growth at 6.3%, modestly higher than the level proposed by the government at 6.2%.

b. Inflation at 7.2%

c. Rupiah at 9,600 a dollar

d. 3 Month Treasury Bill at 5%

e. Oil price at $108 a barrel

f. Oil lifting 840.000 barrel a day

g. Gas lifting 1,240 equivalent with oil a day

From Indonesia with the Sliding Rupiah and the Declining Stocks Market

courtesy abcgoodwallpaper.blogspot.com

- Recent global sell-off in stock markets has brought the Indonesian Stock Exchange (IDX) to decline further, down 3.5% on Tuesday, June 11, the worst drop in one day since June last year before it recovered today by almost 2%  at 4.697,884. 

- According to the data, foreign investors have been net sellers on the IDX for 12 consecutive days with a staggering Rp 3.98 trillion of net sales on Tuesday. 

That day, the rupiah continued its plunge, going as low as 10,111 per dollar in midday trading, before closing at 9,828, according to Bloomberg. Reuters quoted the currency as low as 10,117. Today the local currency has started to strengthen to above the psychological level of 10,000 a dollar.

Indonesia Posted Near Record Figure Trade Deficit on April

courtesy jakartacity.olx.co.id

- Indonesia posted trade deficit $1.62 billion on April, almost near the record figure the country recorded on October last year at $1.88 billion. Export on April was recorded at $14.7 billion whereas import was at $16.31 billion.

- Slowing global demand amid lower commodity prices, said head of the Statistics Agency, was responsible to the trade shortfall on the month.

Indonesia's Inflation Decelerates on May

courtesy ekon.go.id

- Indonesia's inflation on May continued to decelerate at 0.03 percent due to declining food prices, particularly garlic and red onions. Easing gold price also contributed to the deflation on the month as it has brought jewelry prices becomes cheaper domestically.

- According to the head of Statistics Agency Suryamin on a briefing today, " During the past ten years, this is the first time deflation occurs in May ."

Indonesia May See Slowing Economic Growth on Q2 2013

courtesy npr.org

- Indonesia central bank governor Agus Martowardojo predicted yesterday the country may see its economic growth at the lowest 5.9% on annual rate during the second quarter of this year, slowing from the previous three months of 2013, which recorded at 6.02%. He didn't specify the reasons.

- Perry Warjiyo, central bank's deputy governor explained, the growth level of 5.9% was attributable to raising inflation which may take place after the government's decision to adjust fuel price later this month or on July, pending approval from the parliament on revised state budget.

Indonesia Plans Fiscal Stimulus for 2014

courtesy depkeu.go.id

- The Indonesian government is planning to launch  next year a package of fiscal stimulus in forms of tax incentives for industry which manufactures intermediate goods and for investors who commit to spend more on their research and development projects. No details given  so far on the plans.

- According to the finance minister Chatib Basri yesterday, with offering fiscal incentives, the government is trying to help reduce capital goods and raw materials import. Currently, the Southeast Asia biggest economy is suffering from large deficit in its current account.