Jakarta Composite Index

Singapore, Indonesia Agree on Digital, Green Economy Frameworks

Singapore's Deputy Prime Minister, Gan Kim Yong, confirmed the city-state's negotiations with Indonesia on a digital economy framework agreement, according to a release from the Singapore Productivity Center on Tuesday.The signing is expected to be done by 2026, with entry into force slated for 2027, as the two states look to leverage the AI and digital economy boom.Additionally, the two states are exploring a similar understanding for the green economy, focused on green electrons, green financing, carbon credit trading and other green solutions across the region.

Market Chatter: Indonesia Gets US Tariff Exemptions for Spare Parts, Plantation Commodities

Indonesia has secured tax exemptions from the US for various commodities, including spare part and plantation commodity exports, The Jakarta Globe reported Monday, citing Chief Economic Minister Airlangga HartartoThe news came following talks between Hartarto and Trump administration's trade chief, Jamieson Greer, in Paris.The Trump administration recently proposed a new tariff of 10% on Indonesia over allegations that it failed to stop inflows of goods made by forced labor. This, coupled with a separate probe on excess capacity, could push tariffs on Indonesia to 18%, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Indonesia's Central Bank Raises Interest Rates by 25 Basis Points in Surprise Move

In a surprise move, Bank Indonesia on Tuesday raised interest rates by 25 basis points to stabilize the rupiah.The interest-rate hike takes the central bank's benchmark to 5.50% after the rupiah hit a record low near 18,190 per US dollar.The deposit facility interest rate has been raised by 25 bps to 4.50%, and the lending facility interest rate by 25 bps to 6.25%.

Bank Indonesia Delivers Off-Cycle 25 Basis-Point Rate Hike

Market Chatter: Indonesia Eyes Ratification of EU Trade Deal by Year-End, Launch in 2027

Indonesia is looking to officially launch its Comprehensive Economic Partnership Agreement (CEPA) with the European Union (EU) at the start of 2027 following ratification by the end of 2026, The Jakarta Globe reported June 7.The update came after Indonesia's Coordinating Economic Affairs Minister Airlangga Hartarto and European Union Trade Commissioner Maros Sefcovic met in Brussels the prior week, according to the report.The agreement aims to broaden Indonesia's access to the European market and eliminate tariffs on the majority of exports.The EU's Global Gateway initiative was also the subject of the talks in Brussels, under which strategic projects in critical minerals and related industries, as well as others, will receive support, The Jakarta Globe said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Asia Week Ahead: Inflation Prints; GDP Estimates; and Trade Balance

For the week ahead in Asia, inflation, trade and growth data will be in focus as investors assess the region's economic momentum.The week opens with Japan's revised first-quarter GDP figures, followed by trade data from China and Taiwan on Tuesday.Mid-week, China's consumer and producer inflation reports will dominate headlines, while Japan will release producer price data.Thursday will be led by unemployment figures from South Korea and Malaysia, before Friday brings India's inflation report.Here's what to watch in the week ahead.MONDAY, June 8The week was off to a relatively light, but notable start with Japan's first-quarter GDP growth rate.Japan's economy expanded at an annualized rate of 1.8% in the first quarter, according to final data released by the Cabinet Office. The reading was revised down from the preliminary estimate of 2.1% growth, but exceeded the market consensus forecast for a 1.3% increase, according to Trading Economics.The data comes as attention turns to the Bank of Japan's June 15-16 policy meeting, where policymakers are expected to consider another interest-rate increase. The growth figures are unlikely to derail expectations for further policy tightening.TUESDAY, June 9Data readouts will pick up Tuesday, starting with China's trade figures for May.Economists at ING said they expect China's exports to rise 19.5% year-on year and imports to gain 36.4% for a trade surplus of $86.5 billion. The surplus would be an increase from the $84.8 billion recorded in April, thanks in part to higher tech prices, which are boosting both export and import prices, ING said.Taiwan will similarly report trade figures, with ING expecting the island nation's trade surplus to rise to $15.5 billion from $14.4 billion in April. "Strong export orders from previous months suggest external demand remains robust amid the AI boom," ING said in a preview.Markets will be watching for any revisions to South Korea's first-quarter GDP growth rate when the Bank of Korea releases its final estimate on Tuesday.The central bank's advance estimate indicated that South Korea's real GDP increased 3.6% annually and 1.7% on a quarterly basis.In Australia, a pair of reports will capture business and consumer sentiment, while in the Philippines, unemployment stats will be due.Other key data scheduled for the day include Japan's machine tool orders.WEDNESDAY, June 10China's consumer and producer price inflation will dominate headlines Wednesday.Consumer prices are expected to show an uptick of 1.3% year on year in May from 1.2% a month prior, reflecting higher manufacturers' input and output prices due to the Middle East conflict, the Wall Street Journal reported.Japan will similarly report its May producer prices, with analysts expecting the PPI to accelerate to 5.5% year on year from 4.9% in April, according to a Trading Economics consensus.Indonesia will release its May consumer confidence report on the same day.THURSDAY, June 11Unemployment data from South Korea and Malaysia will be the highlight of the day.According to Trading Economics, South Korea's unemployment rate could remain unchanged at 2.80% in May. The platform similarly forecasted that Malaysia's unemployment would remain steady at 2.90%, a level it has held since November 2025.A forward-looking report on consumer inflation expectations will be due in Australia. According to Trading Economics, consumer inflation expectations could rise to 6.5% for June from the 5.6% estimated in May.Meanwhile, Indonesia will report its retail sales stats for April.FRIDAY, June 12India's May inflation data will be in the news Friday.Economists at ING said they expect consumer prices to pick up to 3.9% year on year from the 3.48% recorded in the month prior due to a rise in gasoline prices. Still, the figure would be below the Reserve Bank of India's 4% target."The key risk to the outlook lies in potential second-round effects on food inflation. Fertiliser shortages, alongside the rising probability of an El Niño event, could exert upward pressure on food prices in the coming months and warrant close monitoring," ING said in a preview.Friday will also feature industrial production reports from Japan, Malaysia, and Hong Kong, with Malaysia additionally reporting its retail sales stats for April.In Thailand, the consumer confidence report for May will be due.On the activity front, the Business NZ manufacturing purchasing managers' index report will be due in New Zealand. CommBank said it expects manufacturing activity in May to stabilize, or even lift somewhat, given a decline in fuel prices over late April and May.The Business NZ PMI previously dropped to 50.5 in April from 52.8 in March.

Update: Indonesia's Forex Reserves Fall to $144.9 Billion in May

(Updated to add context)Indonesia's foreign exchange reserves fell to $144.9 billion at the end of May from $146.2 billion at the end of April, according to data released by Bank Indonesia on Monday.The decline reflected government external debt repayments and Bank Indonesia's efforts to stabilize the rupiah amid heightened uncertainty in global financial markets and seasonal domestic demand for foreign currency. The impact was partly offset by proceeds from the government's global bond issuance, as well as by tax and service receipts.

Indonesia's Forex Reserves Fall to $144.9 Billion in May

Indonesia's foreign exchange reserves fell to $144.9 billion at the end of May from $146.2 billion at the end of April, according to data released by Bank Indonesia on Monday.

Market Chatter: Indonesia to Include All Major Commodities in Export Overhaul

Indonesia plans to include all its major commodities in a new export proposal that will go into full effect by Dec. 31, Bloomberg reported Friday, citing a government release.The country's major palm oil product exports, in addition to coal and ferronickel shipments, will be taken over by a new state firm as part of efforts to combat under-invoicing and under-accounting.Prior to full implementation, exporters can continue shipping as usual but will be required to share transaction reports to newly established state-owned entity PT Danantara Sumberdaya Indonesia.Starting next year, Danantara Sumberdaya will take over the entire export process from contracts to shipping and payments, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Indonesia Injects IDR8 Trillion Into Bond Market to Support Rupiah

The Indonesian government has injected 8 trillion rupiah into the domestic bond market in an effort to stabilize the local currency, The Jakarta Globe reported Thursday, citing Finance Minister Purbaya Sadewa.As of 3:59 a.m. ET on Friday, USD/IDR was at 18,036, according to Bloomberg data.Purbaya said the intervention was aimed at maintaining investor confidence and supporting demand for government bonds, which could help attract foreign capital and strengthen the currency. Despite the rupiah's decline, Purbaya said the impact on government finances remains manageable, although debt repayments denominated in foreign currencies will become more expensive in rupiah terms.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Indonesia Rolls Out Commodity Export Regulation

Indonesia on Friday formally issued a regulation to centralize the export of various natural commodities, Reuters reported the same day.President Prabowo Subianto had first announced the move bringing exports under the control of a state entity in May.While the regulation did not name the centralized entity, "the government has appointed Danantara Sumberdaya Indonesia (DSI) as the designated ​export SOE," Reuters said citing a fact sheet by the government's communication agency.Commodity exporters will conduct shipments through Danantara Sumberdaya Indonesia effective June 1, with all exports eventually only being carried out by the state entity after Dec. 31.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Indonesia Passes Bill Expanding Central Bank Mandate

Indonesia's parliament on Thursday approved financial sector legislation that expands the mandate of Bank Indonesia and introduces new governance provisions affecting the central bank and other financial regulators, Reuters reported the same day.Under the legislation, the central bank's policy objectives will be broadened to include supporting "an economic environment conducive to real-sector growth and job creation." The law also introduces a new mechanism concerning the removal of members of Bank Indonesia's board of governors, according to the report.In addition, the legislation grants parliament a greater role in overseeing independent financial regulators. Lawmakers will be able to evaluate bodies such as Bank Indonesia, the Financial Services Authority (OJK) and the Indonesia Deposit Insurance Corp. (LPS), and issue recommendations that are binding, the news outlet reported.The legislation also establishes a legal framework for the planned demutualization of the Indonesian Stock Exchange, sets rules for the development of an exchange for minerals and other strategic commodities, and sets rules for the proposed creation of an international financial center in the country, Reuters reported.The full text of the legislation had not been publicly released, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Bank Indonesia Introduces US Dollar Buying Limit

Bank Indonesia introduced a new cap on the purchase of US dollars, in a bid to make the rupiah less dependent on the US dollar, The Jakarta Globe reported Wednesday.Individuals and entities will, effective Tuesday, June 2, only be permitted to buy up to $25,000 per month, according to the report.Another measure in the same direction includes facilitating cross border transactions in local currencies, Bank Indonesia spokesperson Ramdan Denny Prakoso told the news outlet."The cooperation has currently been established with China, Japan, Malaysia, Thailand, South Korea, and the United Arab Emirates," Ramdan reportedly said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Weakening Rupiah Not Due to Indonesian Govt Fiscal Policies, Finance Minister Says

The weakening of the Indonesian currency toward 18,000 rupiah per U.S. dollar does not reflect worsening government finances, The Jakarta Globe reported Thursday, citing Finance Minister Purbaya Yudhi Sadewa.Purbaya dismissed concerns that the government's recent fiscal policies were reckless while speaking to reporters.He supported his claim with state budget figures, stating that the budget deficit dropped to roughly 0.7% of GDP and tax revenue increased over 22% from a year prior, the newswire reported.The deterioration of the rupiah has instead been a result of market sentiment and speculation, Purbaya reportedly said.He also pushed back on rumored instructions to banks to carry out stress tests if the currency goes below the 18,000 rupiah per U.S. dollar mark, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Moody's Gives Baa2 Issuer Rating to Danantara Investment Management

Moody's assigned a Baa2 issuer rating to Danantara Investment Management on Wednesday, according to a same-day release by the ratings agency.The rating is aligned with the Baa2 sovereign rating of the Indonesian government.The company's senior unsecured global medium-term note program was also given a provisional (P)Baa2 rating.The outlook on all ratings is negative.

Market Chatter: Bank Indonesia Vows Continued Support for Rupiah After Fresh Record Low

Indonesia's central bank said it will continue to take steps to support to rupiah as the local currency dropped to an all-time low on Wednesday, Reuters reported the same day, citing spokesperson Ramdan ​Prakoso.USD/IDR reached 18,037 earlier in the day but was trading at 17,966.5 as of 3:59 a.m. ET, according to Bloomberg data.The central bank will pull all levers at its disposal to maintain stability in the foreign exchange market amid ongoing global uncertainties, the report quoted Prakoso as saying.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Several Asian Countries Face Additional US Tariffs Over Forced-Labor Trade Practices

Several Asian countries could soon face additional duties on some of their exports to the U.S. following Washington's probe into imports produced using forced labor, the Office of U.S. Trade Representative (USTR) said Tuesday.The USTR said Bangladesh, Cambodia, China, Hong Kong, India, Japan, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Indonesia, Pakistan, and Vietnam are among the 54 economies that have failed to impose and effectively enforce a forced-labor import ban.The USTR proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced-labor goods and a 12.5% tariff for the rest.

S&P Gives Danantara Investment Management BBB Long-Term and A-2 Short-Term Credit Ratings

S&P Global Ratings assigned BBB long-term and A-2 short-term issuer credit ratings to Danantara Investment Management, according to a Wednesday release.The outlook is stable, reflecting that on the rating agency's sovereign credit rating on Indonesia, the release said.The ratings reflect S&P Global's almost certain likelihood of sufficient extraordinary support from the Indonesian government for the firm in times of need.

USTR Flags 60 Economies Over Forced Labor Import Gaps, Proposes New Tariffs

The U.S. Trade Representative has concluded that 60 economies failed to properly ban or enforce restrictions on imports linked to forced labor, calling the practices harmful to fair global trade, the US Executive Office announced Tuesday.Among the Southeast Asian countries named are the Philippines, Thailand, Vietnam, Malaysia, Indonesia, Cambodia and Singapore. Taiwan is also included separately among the economies cited.The findings are part of a broader review of many economies. Officials said the gaps create unfair competition by helping producers who use forced labor.USTR has proposed additional tariffs of 10% to 12.5% on affected imports and is seeking public comments before finalizing any action, with hearings scheduled for July 2026.