• Search for:

    • SingCham is the premier business chamber for Singaporean interests in Indonesia. Founded in 2006, SingCham aims to promote the business interests of individuals or companies operating in Singapore and/or Indonesia. SingCham provides networking activities, events, and useful information for its members, and acts as the liaison between the Singaporean business community and the Singapore and Indonesian governments. With a focus on fostering better networking and feedback among members, SingCham is committed to providing valuable resources and insights to help members connect, learn, and grow their businesses in Indonesia. Join SingCham today and become part of a thriving business community that benefits from exclusive resources, networking opportunities, and business insights.

    12Sep, 2018
    Rupiah weakens slightly on Wednesday

    The rupiah weakened slightly on Wednesday to Rp 14,863 per US dollar, from Rp 14, 835 on Monday, according to Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR).

    Samuel Sekuritas Indonesia economist Ahmad Mikail said the weakening trend might continue should the dollar index remain at 95.

    He said the dollar was still in a strong position amid the trade war between the United States and China. “China plans to report the US to the WTO [World Trade Organization] for the US’ plan to increase import tariffs on $200 billion worth of Chinese products,” he added as reported by kontan.co.id

     

    (read more: The Jakarta Post)

    15Aug, 2018
    For the sake of Rupiah, Chevron’s contract will be amended

    ESDM Ministry’s Director General of Oil and Gas (Oil and Gas) Djoko Siswanto said, if possible an amendment was made regarding the production sharing contract (PSC) related to the government’s assignment to Pertamina to buy oil lifting from the KKKS.

    “If you cannot use the regulation, it can work, if it is needed, then the PSC amendment will be done, later it can be added, for example, it had the right to export but prioritized for domestic interest at market price. Staying added like that, the PSC amendment will be completed. “Djoko told the media when met at the ESDM Ministry, Jakarta, Wednesday (8 August).

    He said, there would be an additional lifting potential of 225,000 bpd that could be absorbed by Pertamina. At present, all of Indonesia’s production is 775,000 bpd, and Pertamina currently uses 550,000 bpd.

    “775,000 bpd is reduced to 550,000 bpd which is exported,” added Djoko.

    Furthermore, Djoko explained, at this time he was writing to all existing KKKS with three groups, namely those who had contracted with outside buyers, who had tender with Pertamina but Pertamina lost the tender, and the group that offered the right to match, then he joined the auction , and become the winner of the auction.

    9Aug, 2018
    Rupiah is prone to falling due to the strengthening of the US dollar

    The rupiah exchange rate was opened at the position of Rp14,432 per US dollar (US) in today’s spot market trading, Thursday (9/8). This position strengthened from the close on Wednesday (8/8) which was at the level of Rp14,439 per US dollar.

    In line with the rupiah, the majority of currencies in the Asian region also strengthened before the US dollar. The Japanese yen strengthened 0.16 percent, Thai baht 0.22 percent, South Korean won 0.10 percent, and Malaysian ringgit 0.01 percent.

    Despite strengthening, Senior CSA Research Institute Analyst Reza Priyambada said that rupiah movements were still vulnerable.

    The rupiah is vulnerable to falling due to the weakening of China’s renminbi and euro Europe yesterday. The weakening of the renminbi and euro is expected to make the US dollar move in the green zone.

    Renmimbi China weakened amid plans by the government of the Bamboo Curtain State to reply to import duties on US products.

    While the European euro weakened due to continued discussion of the UK’s exit from the European Union (Britain Exit / Brexit).

    “Again, it is appreciated that the US dollar can withstand the possibility of the rupiah to be able to move positively. Even market participants will take advantage of these conditions by increasing demand for the US dollar,” he said.

    For this reason, in order to sustain the strengthening of the rupiah which is more durable, support is needed from internal sentiment. Unfortunately, internal sentiment is still minimal, after the Central Statistics Agency (BPS) released economic growth figures last Monday.

    (Source: CNN Indonesia)

    27Jul, 2018
    Government calls on export heavyweights to help bolster rupiah

    The government has asked major exporters to park their export revenue in Indonesia and convert it into rupiah to help bolster the currency’s exchange rate.

    President Joko “Jokowi” Widodo made the call during his meeting with 40 top Indonesian exporters on Thursday at Bogor Palace in West Java. Also present at the meeting were Indonesia’s richest man, Robert Budi Hartono, Adaro Energy president director Garibaldi “Boy” Thohir and GarudaFood Group chairman Sudhamek Agoeng Waspodo Soenjoto.

    Finance Minister Sri Mulyani Indrawati said the meeting was held to gather input from the businessmen on managing the prolonged global uncertainty. The government also asked how to channel export revenue to Indonesia.

    “We conveyed to them what we, the government, could do to [persuade] the businessmen to bring their export revenue [back] to Indonesia,” she said after the meeting.

    Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani said only 85 percent of export revenue returned to Indonesia, while the remaining 15 percent was parked overseas.

    (Read more: The Jakarta Post)

    23Jul, 2018
    The weakness of rupiah brings profit for the plantation companies to textiles

    When the rupiah exchange rate continues to fall as it is today, the Composite Stock Price Index (CSPI) seems difficult to return to 6,000 points.

    However, it does not mean that market participants can not invest in the stock market when rupiah is declined. Because, some export-oriented issuers are cheerful because the weakening of the rupiah against the US dollar (US) has the opportunity to boost the company’s financial performance.

    Securities analysts agree that the appreciation of the US dollar against the rupiah provides a positive sentiment for listed companies based on plantations, mining and textiles.

    If most commodities are sold on an export basis, the majority of the company’s revenues will be in US dollars. That way, the company will get a bigger profit when converting its revenue into the rupiah exchange rate.

    “The performance of the first semester of 2018 is predicted to rise,” continued Lucky.

    Looking at both companies’ financial performance in the first quarter of 2018, Astra Agro Lestari and the London Sumatra Indonesia Plantation Company posted a decrease in net income and net income.

    Astra Agro Lestari, for example, posted a 55.03 percent net profit to Rp355.45 billion from Rp790.45 billion in the first quarter of 2017. This is because the company’s revenue also fell 1.11 percent from Rp4.49 trillion to Rp4.44 trillion.

    Meanwhile, net income of London Sumatra Indonesia Plantation Company fell 64.6 percent to only Rp115.99 billion from the previous Rp327.68 billion. This decline occurred because the company’s revenue slumped to Rp868, 33 billion, while in the first quarter of 2017 reached Rp1, 46 trillion.

    “With rupiah conditions like this target stock price (AALI and LSIP) could rise 7 percent from closing Friday (20/7) yesterday,” continued Lucky.

    At the end of last week, Astra Agro Lestari’s share price ended at Rp10.650 per share or closed stagnant. Then, the London Sumatra Plantation Company of Indonesia rose 2.06 percent to Rp990 per share.

    In addition, mining shares that will benefit from the weakening of the rupiah, such as PT Bukit Asam Tbk (PTBA), PT Aneka Tambang Tbk (ANTM) and PT Adaro Energy Tbk (ADRO).

    “When the US dollar strengthens it is good for mining companies, the majority of exporters, commodity prices are also okay,” said Lucky.

    Lucky explained that the price of Comex gold futures rose 0.64 percent last weekend to US $ 1,231.9 per troy ounce. According to him, the price of gold will still strengthen up to the level of US $ 1,255.00 per troy ounce.

    “The price of coal is also still around US $ 100 per metric ton,” added Lucky.

    Furthermore, Binaartha Sekuritas Muhammad Nafan Aji Gusta Utama analysts call PT Sri Rejeki Isman Tbk (SRIL) or Sritex will also enjoy the benefits of rupiah depreciation.

    Understandably, these textile-based issuers also penetrated overseas markets as the target consumers. Referring to the financial statements of issuers in the first quarter of 2018, the company markets its products to Asia, Europe, USA, Latin America, United Arab Emirates, Africa and Australia.

    Total export sales alone in the first three months of this year amounted to US $ 145.37 million, while domestic sales only US $ 122.46 million. As a result, total sales in the first quarter of 2018 amounted to US $ 267.83 million.

    “The performance of Sri Rejeki Isman also consistently increased, maybe this year could be doubled up,” said Nafan.

    In this case, Sri Rejeki Isman recorded a 49.57 percent sales increase in the first quarter of 2018 from the first quarter of 2017 position of US $ 179.06 million.

    Not surprisingly, the company’s net profit was boosted 84.63 percent from US $ 22.39 million to US $ 41.34 million.

    Meanwhile, Sri Rejeki Isman’s share price at the end of last week rose 1.74 percent to Rp350 per share. Shares of Sri Rejeki Isman observed continued uphill since Thursday (19/7) yesterday, at which time the stock price closed at the level of Rp334 per share.

    (Source: CNN Indonesia)

    3Jul, 2018
    Bank Indonesia expects foreign investment to enter the State Securities

    Bank Indonesia (BI) Governor Perry Warjiyo expects foreign investment to enter Government Securities (SBN) and increase the supply of dollars so as to stabilise rupiah.

    “Therefore, with the auction (SBN), foreign investors then also start entering and it will do the stability of the exchange rate,” Perry said after a meeting in the Ministry of Finance reported Antaranews.com, Tuesday (3/7/2018).

    Perry ensures that BI will continue to stabilise rupiah, either through foreign exchange market intervention or the purchase of SBN in the secondary market. He also said that the response of interest rate hikes has been taken to make the Indonesian financial market, especially government bonds, have a yield that remains attractive to foreign investors.

    The rupiah exchange rate transacted between banks in Jakarta on Tuesday morning shrank seven points to Rp14,397 from Rp14,390 per US dollar. Rupiah continued to shrink until 10:30 am when its exchange rate depreciated 39 points to 14,429 per US dollar.

    Source: Kompas.com