Indonesia Economy Forum

[Indos]

BPS: Inflation in May 2022 Reaches 0.4 Percent ​

Kompas.com - 02/06/2022, 11:26 WIB

JAKARTA, KOMPAS.com - The Central Statistics Agency (BPS) reported that in May 2022 there was inflation of 0.4 percent on a monthly basis or month to month (mtm).

Head of BPS Margo Yuwono explained that the inflation figure was the result of the consumer price index (CPI) which increased to 110.42 in May, from 109.98 in April 2022. "Based on the results of BPS monitoring in 90 cities in May, inflation was 0.40 percent," he said at a press conference, Thursday (2/6/2022).

He further said that a number of commodities that contributed to the main inflation in last May were air transportation fares, broiler eggs, fresh fish and onions. Meanwhile, if viewed on an annual basis (year on year / yoy), last May inflation was 3.55 percent, the highest since December 2017 with an inflation rate at that time of 3.61 percent.

With this realization, since the beginning of this year until last May there has been inflation of 3.55 percent (year to date/ytd). If viewed by region, Tanjung Pandan was the region that experienced the highest inflation last May, which was 2.24 percent mtm. Then, Tangerang and Gunungsitoli were both regions with the lowest inflation rates, which was 0.05 percent mtm.

Of the 90 cities observed by BPS, 3 of them recorded a decline in prices or deflation, with Kotamobagu being the region that recorded the highest deflation, which was 0.21 percent. Meanwhile, Merauke was the region with the lowest deflation, at 0.02 percent mtm.

BPS: Inflasi Mei 2022 Capai 0,4 Persen

Kepala BPS Margo Yuwono menjelaskan, angka inflasi itu merupakan hasil dari indeks harga konsumen (IHK) yang meningkat menjadi 110,42 pada Mei.

money.kompas.com

 

[Indos]

Luxury cars will be banned in using subsidized fuel

BPH Migas ( Oil and Gas regulator in Indonesia) chief stated in CNBC Indonesia

 

[Indos]

Jokowi Outlines 5 Points of Bilateral Meeting with Australian PM​

6 June 2022 17:15 WIB

TEMPO.CO, Jakarta - Indonesian President Joko "Jokowi" Widodo revealed five points from the bilateral meeting with Australian Prime Minister Anthony Albanese. They discussed bilateral trade and investment.

“We are more focused on talking about economic cooperation,” said the Indonesian President at a press conference at Bogor Presidential Palace, West Java, Monday, June 6, 2022.

The first point was about exports of high-added value products to Australia, including automotive products. Indonesia started its first export of completely built-up (CBU) cars to Australia last February.

“I hope that the export access will continue to be open,” he said in front of Albanese.

The second point was about the Indonesia-Australia Comprehensive Economic Partnership Agreement or IA-CEPA. Jokowi expected more job opportunities for Indonesians in Australia. “Including the additional quota of the working holiday visa to 5,000 per year,” he said.

Thirdly, Jokowi welcomed cooperation in the education and health sectors such as the opening of the Monash University campus in Bumi Serpong Damai or BSD, Banten, and the construction of 23 hospitals and 650 clinics worth US$1 billion over 20 years in West Java by Australian pharmaceutical firm Aspen Medical.

“This is expected to increase Australian investment for the development of Indonesian resources,” Jokowi remarked.

The fourth point was about strengthening ties in the food processing and innovation, up to the supply chain. The fifth point was about strengthening the bilateral partnership in the energy sector and climate change.

Jokowi said he welcomed Anthony Albanese’s initiative on the Indonesia-Australia climate resilience and infrastructure partnership with an initial fund of A$200 million or equal to Rp2 trillion if the estimated exchange rate was at Rp10,400 per Australian dollar.

FAJAR PEBRIANTO

 

[Indos]

The free trade will likely benefit Hyundai factory in Indonesia

Good products for Australians who want EV cars

 

[nufix]

The free trade will likely benefit Hyundai factory in Indonesia

Good products for Australians who want EV cars

Most likely, the IA-CEPA is going to facilitate Lithium export to Indonesia. Indonesia is becoming major EV battery producer due to its status as the largest Nickel producer, but we are still missing one key component which is Lithium. Australia happens to be biggest Lithium producer in the world.

 

[Indos]

Most likely, the IA-CEPA is going to facilitate Lithium export to Indonesia. Indonesia is becoming major EV battery producer due to its status as the largest Nickel producer, but we are still missing one key component which is Lithium. Australia happens to be biggest Lithium producer in the world.

Well it is news to me, nice to hear that. Any way Indonesian government also tries to explore potential big lithium deposit in Indonesia, next year I hope we can hear good news about this effort

 

[Indos]

How Indonesia is managing its economic recovery amid twin supply shocks: Finance Minister​

In an exclusive interview, Indonesian Finance Minister Sri Mulyani Indrawati told CNA how rising food and energy prices are complicating the global economic recovery from the COVID-19 pandemic. She spoke to Sarah Al-Khaldi at the Indonesia-Singapore Business Forum on Jun 14, 2022. Read more: https://cna.asia/3aTgY1a

 

[Indos]

Shoppe Indonesia office will lay off many of their workers. The lay off is part of Shoppe business strategy that will affect whole of their offices in many countries. Shoppe head quarter is in Singapore

Shoppe office in Jakarta, Indonesia.

 

[Indos]

Our Health Minister talks about new wave of Covid 19 new variants

 

[Indos]

FIFA World Cup 2022 in Qatar will use Adidas ball made in Indonesia.

Despite we dont force women to wear hijab-which is inline with what Quran teach (there is no compulsion in religion-Quran), but from upper class until lower economic class group of women in majority wear hijab, AlhamduliLLAH.

 

[Indos]

Current Debt to GDP ratio is decreasing into 39 % according to Sri Mulyani.
State budget in 2022 will get less loan than the plan (RAPBN 2022) around 55 billion USD due to expected improve revenue within this year.
More subsidy to tackle inflation from skyrocketing energy price

 

[Indos]

Record Coal Prices Boost Earnings at Indonesian Coal Companies​

Tue 21 Jun, 2022 - 5:58 AM ET

Related Fitch Ratings Content: Indonesia Coal Earnings Roundup

Fitch Ratings-Singapore-21 June 2022: The credit profiles of Indonesian coal miners and coal contractors will remain strong through 2022, even though coal prices will moderate in 2023, Fitch Ratings says in a new report. Liquidity for the sector’s rated entities remains robust on strong earnings, modest capex for most companies and no major near-term debt maturity. All rated coal producers and contractors are on a Stable or Positive Outlook due to wider rating headroom amid strong earnings forecasts into 2023.

Earnings in 1Q22 remained strong for most entities in the sector, even though EBITDA levels declined from the previous quarter, which was exceptionally strong on record prices coupled with sales catching up after a weaker 3Q21 due to high rainfall. Fitch expects earnings in the second half of 2022 to remain strong on supportive prices and robust operations.

Fitch revised up our thermal coal price assumptions for 2022-2023 on 16 June. Our increased thermal coal assumptions reflect high year-to-date prices, supported by tight supply due to the Australian wet season, strong Indian demand mitigating lower demand in China, and structurally higher prices of Newcastle 6,000 kcal/kg. We expect prices to subsequently align with our earlier long-term assumptions on continual coal substitution in the energy mix.
The report, “Earnings Roundup 1Q22: Indonesia Coal”, is accessible at www.fitchratings.com or by clicking the link above.
Contact:

Shubha Sethi
Director

https://www.fitchratings.com/research/corporate-finance/record-coal-prices-boost-earnings-at-indonesian-coal-companies-21-06-2022

 

[Indos]

Big private owned telecommunication companies

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Official! XL Axiata (EXCL) and Axiata Group Acquire Link Net (LINK) of IDR 8.7 Trillion Shares of PT Link Net Tbk.

(LINK) experienced a jumbo crossing today, Wednesday (22/6/2022), with transactions reaching Rp8.71 trillion.

CEO of PT XL Axiata Tbk. Dian Siswarini - XL Axiata



Annisa Kurniasari Saumi - Bisnis.com 22 June 2022 | 18:01 WIB

Bisnis.com , JAKARTA - PT XL Axiata Tbk . (EXCL) and Axiata Group Bhd officially completed the acquisition of a 66.03 percent stake in PT Link Net Tb k. (LINK). EXCL is known to have acquired 550 million LINK shares or the equivalent of 20 percent ownership at a price of IDR 4,800 per share.

For information, LINK shares experienced a jumbo crossing today, Wednesday (22/6/2022), reaching IDR 8.71 trillion. Four brokers were involved in this transaction, namely PT Maybank Kim Eng Sekuritas with broker code ZP, PT Ciptadana Sekuritas Asia (KI), PT Mandiri Sekuritas (CC), and PT CGS-CIMB Sekuritas (YU).

XL Axiata Corporate Secretary Ranty Astari Rachman said, EXCL acquired a total of 550,316,196 LINK shares from this purchase. Also Read: XL Axiata (EXCL) Gets a Rp1.9 Trillion Loan from MUFG, Want Corporate Action? Ranty said, EXCL bought LINK's shares at a price of IDR 4,800 per share. This transaction was carried out today, Wednesday (22/6/2022).

"Investments to provide positive value for all shareholders, management and employees, as well as provide benefits to the telecommunications industry in Indonesia more broadly," said Ranty, Wednesday (22/6/2022). Meanwhile, Axiata Investments (Indonesia) Sdn Bhd, a subsidiary under the Axiata Group, bought LINK's shares with a larger portion of 46.03 percent.

Resmi! XL Axiata (EXCL) dan Axiata Group Akuisisi Link Net (LINK) Rp8,7 Triliun

Saham PT Link Net Tbk. (LINK) mengalami crossing jumbo hari ini, Rabu (22/6/2022), dengan transaksi mencapai Rp8,71 triliun.

market.bisnis.com

 

[Indos]

Indonesia Central Bank hold interest rate at 3.5 % in June meeting, this make the stock market gets green Today. So basically holding the interest rate (instead of rising it as many foreign annalists want) is the best policy to make since foreign money will flood to stock market due to optimist expectation on the economy (as lower rate will push economic growth) that in the end help strengthen Rupiah.

Indonesia Central Bank hasnt increased the interest rate at least since late 2020, which is due to the fact that our real interest rate is still competitive enough compared to other developing countries that have already been in negative real interest rate like India.

Indonesia Central Bank should keep holding interest rate at 3.5 % as I believe Indonesia hopefully can hold inflation below 4.5 % with the help of God until the end of 2022 as Finance Ministry has already set aside huge fund to subsidize domestic energy cost and for coal and gas the price is capped since we are in surplus and no need to import those energy commodities.

Export will likely be still going up and trade surplus will likely remain large between 5-8 billion USD per-month until the end of 2022 that can support both the economy and Rupiah. Furthermore, with the coming of migrant workers to Malaysia again after Malaysia raise minimum wage and give more protection to our migrant workers, Rupiah then will have more weight to withstand from the market pressure.

The support from expected trade surplus and increase remittance will help cushion Indonesia economy from current economic pressure that comes from outside Indonesia (The Fed tightening policy, Russia-Ukraine war, and supply bottle neck amid raising demand due to the world economy return to normality after pandemic years).

We should not bother much about The Fed raising interest rate, but the parameter under consideration during Central Bank Board meeting should be on the real interest rate difference between Rupiah and USD. As US inflation increases much faster than the Fed interest rate, so Indonesia still have room to maintain our Central Bank interest rate at 3.5% since our inflation is expected to keep below 4.5 % for the rest of the year.

Real interest rate = Central Bank interest rate - inflation

 

[Indos]

BI Holds Interest Rate at 3.5%, Rupiah Still Mighty!​

MARKET - Putu Agus Pransuamitra, CNBC Indonesia
23 June 2022 14:35

Jakarta, CNBC Indonesia - The rupiah exchange rate was able to maintain its appreciation against the United States (US) dollar on Thursday (23/6/2022) even though Bank Indonesia (BI) maintained its benchmark interest rate.

According to Refinitiv data, at 14:27 WIB, the rupiah was at Rp 14,830/US$, strengthening 0.24% on the spot market .

In accordance with market consensus compiled by CNBC Indonesia, BI today maintained its benchmark interest rate 7 Day Reverse Repo Rate at 3.5%.

"The meeting of the Board of Governors of Bank Indonesia on June 22-23 2022 decided to maintain the BI7-Day Reverse Repo Rate at 3.5%, the Deposit Facility interest rate at 2.75%, and the Lending Facility interest rate at 4.25%," said Perry Warjiyo, Governor BI, in a press conference after the RDG, Thursday (22/6/2022).

The 3.5% level is the lowest benchmark interest rate in Indonesia's history, and has been on hold for 16 months.

"This decision is in line with efforts to control inflation and maintain the rupiah exchange rate. Coupled with external pressure related to the risk of stagflation in various countries," Perry continued.

With the holding of interest rates, the momentum of economic growth in Indonesia will be maintained. The rupiah is still strong even though the difference in interest rates with the US central bank (The Fed) continues to narrow.

Read:​ Legitimate! BI Holds Benchmark Interest at 3.5%

As is known, the Fed last week raised interest rates by 75 basis points (bp) to 1.5% - 1.75%.

"Obviously today's 75 basis point increase is one of the largest and most unusual, I don't see a move like this as something unusual," Powell said .

The increase was the largest since 1994, and it didn't stop there. Fed Chair Jerome Powell said he would continue to raise interest rates to lower inflation.

Read:​ Central Banks Like The Fed Can Also 'Mencla-mencle'!

During his monetary policy announcement last Thursday, Powell said interest rates in July would rise between 50 bp to 75 bp. Meanwhile, at the end of the year, the Fed projects interest rates to be at 3.25% - 3.5%.

BI Tahan Suku Bunga 3,5%, Rupiah Tetap Perkasa!

Nilai tukar rupiah mampu mempertahankan penguatan melawan dolar Amerika Serikat (AS) pada perdagangan Kamis (23/6/2022)

www.cnbcindonesia.com