May 2015 1st Week

11 may 2015

Categories : IR Weekly Review


  • MACRO
    • The exchange rate of the US dollar weakened against most other major currencies on Monday (Tuesday morning, 5/5/2015), after a Federal Reserve officials lowered expectations for interest rate hikes The Fed's first quarter this year. Chicago Federal Reserve President Charles Evans said on Monday that first-quarter economic data are weak, making it feel it is impossible for the central bank to start raising interest rates until "some time in early 2016." A rise in interest rates are expected to boost dollar driven by investment inflows into the United States.
    • World oil prices rose again on Thursday (Friday morning, 8/5/2015) after data showed US crude oil inventories are plentiful diminished when the dollar weakened against the euro. The benchmark US light sweet crude or West Texas Intermediate (WTI) for June delivery rose US $ 1.05 to close at US $ 59,63 per barrel on the New York Mercantile Exchange.
    • Governor of The Central Bank and Finance Ministers of Japan, China and South Korea held a bilateral meeting in the middle of the annual meeting of the leaders of the ADB (Asian Development Bank) in Baku, Azerbaijan on 2-3 may 2015. In the meeting they expressed understanding and their commitment to apply monetary policy oriented support requests in the face of weak global growth is likely to be moderate and uneven motion.
    • China's National Bureau of statistics reported that manufacturing activity in China April period still continued to show its expansion phase. Based on the Manufacturing PMI data released by the Government, China's Manufacturing PMI in April ended in a score of 50.1 or unchanged from the previous month. This release is quite surprising because economists predict the score only PMI can touch threshold phase of contraction and expansion of the reaction flask 50.0.
    • Reviews :
      The weak US economic data in the first quarter, making the central bank (The Fed) will not raise interest rates any time soon.
  • MICRO
    • Bank Indonesia predicts economic growth will begin to rise again in quarter II 2015. It was after the quarter I grow only 4.71 out percent. "Government spending is estimated to increase from quarterly II 2015 onwards so that it becomes a stimulus for economic growth," explained Executive Director of Communications Department BI Tirta Segara in Jakarta, Wednesday (05/05/2015).
    • The Rupiah opened at 12.985 fare per US dollar Tuesday (05/05/2015). The local currency suffered a significant increase compared to the closing position trade Monday afternoon in level b 12.948 per dollar. Rupiah booked the increase of $ 37.00 points or the equivalent of 0.28 percent. At this time the rupiah plummeted from a position further observed the opening and have penetrated the resistance level at position 13.021 per US dollar. The rupiah is very hard hit due to the dollar's rebound and the conditions of the domestic stock market are still overshadowed by the possibility of further declines.
    • Minister of Energy and Mineral Resources Sudirman Said the Committee formed the national exploration that will be managing the problems of oil and gas exploration in Indonesia. "This Committee would encourage massive exploration because we are aware of our reserves constantly thinning," said Sudirman during a news conference at the Office of oil and gas, SKK Jakarta, Saturday night (5/5/2015).
    • The Economy Coordinating Minister Sofyan Djalil said Indonesia should be more aggressive in creating export trade to nontraditional countries in addition to China and Europe, such as Turkey, the Middle East, Iran and India. It is because Indonesia export trading partners like China and Europe is slowing down. "We have to be more aggressive Exports to the countries of the non traditional, because in a country like Turkey, India, the Middle East and Iran, our market share is still small. Then, a weakening in demand for over all because of reduced demand. According to the IMF the entire developed world is slowing down, Sofyan said in Jakarta on Tuesday (5/5/2015).
    • Minister of Finance Bambang Brodjonegoro confessed to optimistic Government spending will contribute to economic growth by 2015, though delivering significant influence until the quarter I. "would be better Anyway. Government investment spending was driven through, "he said, in Jakarta, Wednesday (6/5). Bambang explains Government spending will provide a substantial contribution on economy, especially after the process of procurement of goods and services for capital expenditures on infrastructure projects, was completed in May 2015.
    • Reviews :
      To boost the growth of Indonesia's economic by 2015, its greatest contribution to predict from government investment spending.
  • BANKING
    • Deputy Commissioner of Banking Supervision of the Financial Services Authority (OJK), Irwan Lubis deliver banking profit growth in the first quarter of this year seen slowing. "Indeed, when compared to the first quarter 2014 there was a slowdown in profit growth in almost all the books," Irwan said in Jakarta, Monday (4/5). According to him, it is a result of its main banking business activity is the provision of credit. When compared with the first quarter 2014, the credit growth in the first quarter 2015 was still low and from the end of last year until now the new credit grew 1 percent.
    • The Financial Services Authority (OJK) expect banks to maintain net interest margin or Net Interest Margin (NIM) by the end of 2015 remained at the level of 4% -5%. As for until February 2015 banking net interest margin stood at 4.06%, down 12 basis points on an annual basis.
    • The Jakarta Goverment intends to become one of the shareholders in Bank of East Nusa Tenggara (Bank NTT). Director of Bank NTT Daniel Tagu Dedo recognize intentions city government, through the Bank DKI become one of the shareholders in the bank owned by the government and people of the NTT. He said, for the realization of that desire, two government representatives will meet and discuss the plan in August 2015 to come. "We expect the stock purchase plan by the Jakarta administration can be realized in 2015," he said, as quoted by Antara, Thursday (07/05/2015).
    • The Financial Services Authority (OJK) admits that they have not wanted to revise credit growth target at 15-17% until the end of this year. Chief Executive of the Banking Supervision Division OJK, Nelson Tampubolon admits still optimistic with the target. "Banks are still optimistic target of 15-17% can be achieved. We've been asked to the big banks, they say are still optimistic and there is no intention to revise its business plan (RBB), "Nelson said, Wednesday (6/5).
    • Reviews :
      Slowing growth in the national economic also affected the banking sector seen low growth in lending and the need for inorganic growth, among others capital investment and acquisitions in order to increase business.

Disclaimer : This document is for informational purposes only and obtained from a variety of reliable sources, but is not a guarantee the accuracy or completeness and should not be relied on completely. The above conditions may be changed at any time. Forbidden to rewrite anything without written permission from The East Java Regional Development Banks.