May 2015 3rd Week

25 may 2015

Categories : IR Weekly Review


  • MACRO
    • Currency exchange rate Movements of the US Dollar strengthened against a number of major world currencies, especially the Euro for the second day consecutively in the trading session on Tuesday (19/05/2015). The movement of the strengthening U.s. Dollar this time getting the support of the sentiments of the European Central Bank (ECB) who were planning to increase higher stimulus. In addition, the movement of the US Dollar exchange rate strengthened this time also gets support from release of housing data of US is strong in last April.
    • Economic growth or gross domestic product (GDP) of Japan in the quarter I this year amounted to 2.4%, exceeded the projections of 1.5% and 1.1% in the previous quarter after a contraction in the quarter II and III last year. As reported by CNBC, from Wednesday (20/5/2015), on the quarter to quarter, GDP of Japan grew 0.6% in the first three months of this year, a Reuters survey of projections exceed 0.4%. Drivers of GDP are private consumption, which grew by 0.4% from the previous quarter, above the estimate of 0.2%. Even though consumption is increasing, however limited tax increases, lower real wages and higher prices, so trim consumer spending.
    • Prime Minister of China Li Keqiang sure meets the target of economic growth of 7% in 2015. This figure is the slowest in a quarter century this year. Moreover, it has launched a series of measures since last year to prop up the flagging economy and reduce the risk of short term growth target. "We have the ability and confidence to meet this target and to sustain economic growth," said Li as quoted from Reuters, Thursday (21/5/2015). Keqiang Speaking this in Brazil at the time announced an offer of trade, finance, and investments worth tens of billions of dollars, including the mining and aviation sector.
    • Reviews : 
      The movement of the currency rate of the US dollar (USD) are be strong, influenced by improving US housing data is usually accompanied with a rise in interest rates by the US Central Bank (The Fed) and the weakening of the economy in China.
  • MICRO
    • Meeting of the Board of Governors of Bank Indonesia (BI-RDG) Tuesday (19/05/2015), decided to keep the benchmark interest rate (BI Rate) of 7.5%. The decision is in line with the central bank's monetary policy is likely to be tight to reach the target of inflation of 4 ± 1% in 2015 and 2016. The Governor of Bank Indonesia, Agus Martowardojo D.W. reveals, in addition to decide hold BI Rate at the level of 7.5%, the RDG-BI also decided to hold interest rates on Deposit Facility (Fasbi) 5.5% and Lending Facility is at a level of 8%.
    • The position of foreign debt of Indonesia in the first quarter of 2015 showed a slowdown in growth. Bank Indonesia (BI) noted, the ULN of Indonesia in the first quarter of 2015 grew by 7.6% or lower than the fourth quarter of 2014 grew 10.20% (yoy). Executive Director of BI, Tirta Segara said the position of foreign debt until the end of the first quarter of 2015 amounted to USD 298,1 billion, consisting of  foreign debt of public sector amounted USD 132,8 billion (44.5% of total foreign debt) and the private sector amounted to USD 165,3 billion (55.5% of total foreign debt).
    • Rating agency Standard & Poor's Ratings Services (S & P) raised from stable to positive (BB +). Indonesia is considered to have the confidence to pay the debt in the long term. The rating agency also considers Indonesia could be into the category of "investment grade" in the next 12 months, if the government is able to improve the quality of budget absorption. "The policy more effective and a higher degree of certainty that has resulted in the ability of fiscal and broader international reserves, as well as strengthening the external resistance Indonesia," said S & P as quoted by Bloomberg, on Thursday (21/5).
    • Reviews :
      Recovering Indonesia's debt rating outlook from stable to positive (BB +) by the Rating Agency Standard & Poor's Ratings Services (S & P), must be followed up with tangible improvements in the domestic economy and attract new investors to invest in Indonesia. This Boost Economy in short term.
  • BANKING
    • Bank Indonesia (BI) will revise Statutory provisions - Loan to Deposit Ratio (GWM-LDR), the provisions of LTV (loan to value) for Housing Loan (KPR) and advance payments (down payment) Vehicle Loans (KKB ). "Bank Indonesia to revise the provisions of GWM-LDR and coordinate with the OJK to revise the provisions of LTV for Housing Loan (KPR), as well as the provision of advance payments (down payment) for Vehicle Loans (KKB)," Governor of BI Agus Martowardojo said after meeting Board of Governors (RDG) in Jakarta, Tuesday (19/05/2015). Revised provisions LTV is intended that the credit quality in the property sector or the motor can be maintained properly. In addition, to convince people if you want to do credit must be had advance payments or DP beforehand, so can not be 100% by the debtor.
    • Corporate Secretary of BRI Budi Satria said, the amount of remittances that uses BRI Fast Remittance transactions reached 1.1 million, up 42.9% from the same period the previous year, with a nominal increase in transaction becomes Rp160,2 trillion, up 50% from the previous year Rp 107.1 trillion. "As one of the contributors to the acquisition of fee based income, the bank seeks to improve business performance this year pegged remittance increased by 25%," Budi said in a release on Friday (22/05/2015). He continued, nominal BRI Fast Remittance transactions amounting to Rp 160.2 trillion, consisting of outgoing transactions (from inside to outside the country) of Rp 86.8 trillion, while the incoming transaction (from outside to inside the country) amounting to Rp 73.4 trillion.
    • Chairman of the Board of Commissioners OJK Muliaman D Hadad revealed in Jakarta, Sunday (05/17/2015), Sharia finance industry must be directed to improve public access to the financial sector or financial inclusion. According to him, there are several important things for the development of Sharia finance industry, including pushing operation of the free market, fair and transparent of Sharia financial services sector and the increased capacity of human resources in the field of Sharia financial and development of standard product Sharia financial through research and innovation.
    • Reviews : 
      The reduced of value in the field of banking credit portfolio, to maintain the ratio of bank income or profitability, it must be handled with the acquisition of the transaction which is a fee based income.

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.