Tue, 08 Feb 2011
From: The Jakarta Globe
By Muhamad Al Azhari
Financial markets and industry players welcomed the news of better-than-expected economic growth, but they were split on whether 2011 would beat last year’s achievement.

Gross domestic product rose 6.9 percent in the fourth quarter from a year earlier, the Central Bureau of Statistics (BPS) announced on Monday, well above even the most optimistic forecasts. GDP growth for 2010 came in at 6.1 percent, also above most forecasts.

“The GDP announcement was not a surprise. Everybody knew Indonesia’s economy would grow around 6 percent last year, so I think it did not have much influence on the market,” said David Chang, a director at UOB Kay Hian Securities.

Chang was also skeptical about the economy’s chances to beat its 2010 performance, citing rising inflation and interest rate hikes. What would drive the economy this year, he said, was greater per capita income.

“People will have more money to spend, which will then be reflected in corporate earnings,” he said.

In addition to the GDP data, the BPS announced on Monday that the nation’s per capita income rose to Rp 27 million ($3,000), up 13 percent from 2009.

The private sector has its own worries, though general sentiment remained positive. Amelia Tjandra, marketing director for Astra Daihatsu Motor, said the government’s 6.3 percent target for economic growth this year was achievable as long it kept political and social conditions stable, “not like what happened in Egypt.”

While she said the government’s plan to prohibit private vehicles from using subsidized fuels would impact the automotive industry, of greater concern was the damage inflation and higher interest rates would have on consumers’ purchasing power.

“Seventy percent of car buying schemes are done through loans. If the interest rate is higher, then there are huge possibilities people may delay buying these kind of goods,” she said.

In a worst-case scenario, Amelia said, car sales would maintain last year’s pace, which saw a record 764,710 units sold. If higher interest rates do not have a severe effect on the sector, though, she said sales could still match the Association of Indonesian Automotive Manufacturers’ (Gaikindo) forecast of 800,000 units.

Artadinata Djangkar, a director at Ciputra Property, a subsidiary of property conglomerate Ciputra Development, said he believed the economy could do even better than 2010.

“Looking at last year, I believe investment will keep rising and household consumption will remain strong,” he said.

“Yes, there is an expectation of higher interest rates as well as inflationary pressures, but as long as the rate hike is done gradually, I don’t think it will have hurt growth.

In the property sector, housing loans have been way above the BI rate, at 9 percent to 9.5 percent, but I believe people will still buy as their incomes rise and the economy grows.”

Fetty Kwartati, corporate secretary and head of investor relations at Mitra Adi Perkasa, said the prospects for the economy and the retail sector were good. “The GDP growth means the spending power of the middle and upper class is increasing,” she said.


Additional reporting by Francezka Nangoy & Shirley Christie



News Search/Filter
Transaction Rates
20 Jul 18
Buy
Sell
AED1
3,896.92
3,896.92
AFN1
200.19
200.19
ALL1
132.25
132.25
AMD1
29.80
29.80
ANG1
7,753.14
7,753.14
AOA1
56.09
56.09
ARS1
516.17
516.17
AUD1
10,538.71
10,538.71
AWG1
8,003.39
8,003.39
AZN1
8,407.69
8,407.69
BAM1
8,481.07
8,481.07
BBD1
7,157.05
7,157.05
BDT1
169.28
169.28
BGN1
8,522.28
8,522.28
BHD1
37,822.48
37,822.48
BIF1
8.07
8.07
BMD1
14,314.10
14,314.10
BND1
9,475.38
9,475.38
BOB1
2,070.16
2,070.16
BRL1
3,737.26
3,737.26
BSD1
14,314.10
14,314.10
BTC1
105,850,290
105,850,290
BTN1
207.40
207.40
BWP1
1,381.06
1,381.06
BYN1
7,156.71
7,156.71
BZD1
7,116.96
7,116.96
CAD1
10,793.96
10,793.96
CDF1
8.87
8.87
CHF1
14,331.04
14,331.04
CLF1
592,471.40
592,471.40
CLP1
21.56
21.56
CNH1
2,110.46
2,110.46
CNY1
2,113.56
2,113.56
COP1
5.02
5.02
CRC1
25.22
25.22
CUC1
14,314.10
14,314.10
CUP1
561.33
561.33
CVE1
150.20
150.20
CZK1
643.47
643.47
DJF1
80.41
80.41
DKK1
2,238.62
2,238.62
DOP1
287.22
287.22
DZD1
121.41
121.41
EGP1
799.55
799.55
ERN1
953.59
953.59
ETB1
518.49
518.49
EUR1
16,682.46
16,682.46
FJD1
6,824.66
6,824.66
FKP1
18,641.02
18,641.02
GBP1
18,641.02
18,641.02
GEL1
5,846.44
5,846.44
GGP1
18,641.02
18,641.02
GHS1
2,990.30
2,990.30
GIP1
18,641.02
18,641.02
GMD1
297.90
297.90
GNF1
1.57
1.57
GTQ1
1,909.20
1,909.20
GYD1
68.37
68.37
HKD1
1,823.55
1,823.55
HNL1
595.99
595.99
HRK1
2,255.76
2,255.76
HTG1
211.97
211.97
HUF1
51.09
51.09
IDR1
1.00
1.00
ILS1
3,930.86
3,930.86
IMP1
18,641.02
18,641.02
INR1
207.61
207.61
IQD1
12.00
12.00
IRR1
0.32
0.32
ISK1
134.25
134.25
JEP1
18,641.02
18,641.02
JMD1
108.90
108.90
JOD1
20,174.83
20,174.83
JPY1
127.38
127.38
KES1
142.07
142.07
KGS1
209.76
209.76
KHR1
3.52
3.52
KMF1
33.81
33.81
KPW1
15.90
15.90
KRW1
12.60
12.60
KWD1
47,226.94
47,226.94
KYD1
17,165.83
17,165.83
KZT1
41.32
41.32
LAK1
1.69
1.69
LBP1
9.45
9.45
LKR1
89.51
89.51
LRD1
88.87
88.87
LSL1
1,078.27
1,078.27
LYD1
10,373.48
10,373.48
MAD1
1,510.46
1,510.46
MDL1
859.48
859.48
MGA1
4.25
4.25
MKD1
270.80
270.80
MMK1
9.95
9.95
MNT1
5.86
5.86
MOP1
1,769.29
1,769.29
MRO1
40.26
40.26
MRU1
399.16
399.16
MUR1
415.98
415.98
MVR1
928.88
928.88
MWK1
19.70
19.70
MXN1
751.88
751.88
MYR1
3,523.47
3,523.47
MZN1
243.06
243.06
NAD1
1,079.90
1,079.90
NGN1
39.58
39.58
NIO1
450.76
450.76
NOK1
1,740.17
1,740.17
NPR1
129.62
129.62
NZD1
9,657.80
9,657.80
OMR1
37,183.94
37,183.94
PAB1
14,314.10
14,314.10
PEN1
4,365.42
4,365.42
PGK1
4,345.18
4,345.18
PHP1
266.93
266.93
PKR1
111.06
111.06
PLN1
3,842.48
3,842.48
PYG1
2.49
2.49
QAR1
3,931.36
3,931.36
RON1
3,584.45
3,584.45
RSD1
141.40
141.40
RUB1
224.80
224.80
RWF1
16.46
16.46
SAR1
3,816.73
3,816.73
SBD1
1,810.81
1,810.81
SCR1
1,056.98
1,056.98
SDG1
794.59
794.59
SEK1
1,608.36
1,608.36
SGD1
10,456.54
10,456.54
SHP1
18,641.02
18,641.02
SLL1
2.19
2.19
SOS1
24.69
24.69
SRD1
1,919.29
1,919.29
SSP1
109.88
109.88
STD1
0.68
0.68
STN1
675.19
675.19
SVC1
1,634.69
1,634.69
SYP1
27.79
27.79
SZL1
1,061.09
1,061.09
THB1
427.92
427.92
TJS1
1,517.73
1,517.73
TMT1
4,089.76
4,089.76
TND1
5,416.66
5,416.66
TOP1
6,193.66
6,193.66
TRY1
2,976.23
2,976.23
TTD1
2,122.36
2,122.36
TWD1
466.45
466.45
TZS1
6.28
6.28
UAH1
545.00
545.00
UGX1
3.82
3.82
USD1
14,314.10
14,314.10
UYU1
459.14
459.14
UZS1
1.83
1.83
VEF1
0.13
0.13
VND1
0.62
0.62
VUV1
131.65
131.65
WST1
5,529.81
5,529.81
XAF1
25.43
25.43
XAG1
219,377.65
219,377.65
XAU1
17,513,898.30
17,513,898.30
XCD1
5,296.51
5,296.51
XDR1
20,003.03
20,003.03
XOF1
25.43
25.43
XPD1
13,127,513.16
13,127,513.16
XPF1
139.79
139.79
XPT1
11,572,848.46
11,572,848.46
YER1
57.19
57.19
ZAR1
1,056.66
1,056.66
ZMW1
1,454.51
1,454.51
ZWL1
44.40
44.40
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services