Market News: 15-21 January 2017
"BI Records 0.67 Percent Inflation on Third Week of January” - Tempo - 21 January 2017
Bank Indonesia has announced that the inflation rate has increased to a 0.67 year to date and could reach 3.19 percent. This inflation was triggered by increasing electricity and chili prices. Other sources include the removal electricity subsidy and the increase of prices for vehicle documents. However, the government will keep the inflation under control and take efforts to prevent crop failures need to be taken in order.
"2018 Asian Will Upsurge Local Economy” - Antara News - 19 January 2017
South Sumatra Governer announced that the 2018 Asian Games will trigger the local economic growth. Not only economic growth, the 2018 ASIAN games will also develop several infrastructures nearby. With the funds coming the government, they will have to keep socializing so all civilians can know.
"Indonesia is Deemed Successful in Passing Economic Turbulence” - Kompas - 17 January 2017
The Indonesian central bank has deemed that Indonesia has passed the global economic turbulence successfully. Though the Indonesian currency has dropped 3% for the US dollar, it is still relatively strong. Other than that low inflation has help contribute as well. The 2017 Indonesian Budget forecast sees better commodities, allocations through various sectors, as well as social sectors. However, the slow economic growth in China may shed a risk for Indonesia’s own economic growth.
"Inflation Can Push in Raising Interest Rate” - Media Indonesia - 16 January 2017
After a year of monetary easing, Indonesian Central Bank is expected to have difficulties maintaining the direction of this policy due to the surge of inflation this year. This potential increase is expected to be a major cause in the upward trend of rising interest rates. With global pressure and an unpredictable inflation, the rise of foreign exchanges reserves has slowed the bank’s monetary policy. Nevertheless, the rise of interest rate is not in the near future.
"Jokowi Hopes Economies in the Region Can Grow Faster” - Tempo English - 15 January 2017
The Indonesian President hopes that economy of all regions in Indonesia can grow in 2017. In the 2016 revised state budget the government allocated a bigger portion for regionals than in the central government. For the 2017 budget, the government has prepared a budget of IDR 764.9 trillion for regions in Indonesia, a budget that is bigger than other sectors. That is done is hopes that the economic growth in the regions can grow even faster.