Long-serving Bank Indonesia Gov. Perry Warjiyo stepped down in a surprise move, the latest leadership change under the Prabowo administration that is likely to stoke worries about central bank independence and economic policymaking in Southeast Asia’s largest nation, the Wall Street Journal reported. State Secretary Minister Prasetyo Hadi announced the resignation at a press conference in Jakarta on Monday, which wasn’t attended by Warjiyo. He said President Prabowo Subianto has accepted the central bank chief’s resignation. Senior Deputy Gov.
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Indonesia’s central bank unexpectedly held interest rates steady on Wednesday as it assessed the effects of previous tightening moves amid a weakening currency and ongoing tensions in the Middle East, the Wall Street Journal reported. Bank Indonesia kept its benchmark seven-day reverse repo rate unchanged at 5.75%, taking a breather after delivering a cumulative 100 basis points of rate increases in May and June. The central bank also maintained its overnight deposit facility rate at 4.75% and its lending facility rate at 6.50%.
Indonesia’s central bank raised interest rates again, as it seeks to support the rupiah and contain inflation risks stemming from geopolitical volatility, the Wall Street Journal reported. Bank Indonesia increased its benchmark seven-day reverse repo rate by 25 basis points to 5.75% on Thursday, extending a tightening cycle aimed at anchoring inflation expectations and stabilizing the currency amid persistent dollar strength and capital outflows. Seven of nine economists polled by The Wall Street Journal had expected the move.
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Indonesia’s central bank raised interest rates in an off-schedule decision on Tuesday, pulling an emergency lever as mounting external and domestic pressures weighed on the country’s currency, the Wall Street Journal reported. Policymakers in Southeast Asia’s largest economy raised the benchmark rate by 25 basis points to 5.50% and announced measures to support the rupiah, including incentives aimed at encouraging foreign investment. They also raised the overnight deposit facility rate and lending facility rate by 25 basis points each, to 4.50% and 6.25%, respectively.
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Indonesia’s central bank snapped a long-running pause to deliver its first rate hike in over two years, making a pre-emptive strike against the inflation threat posed by the conflict in the Middle East, the Wall Street Journal reported. Wednesday’s move marks Bank Indonesia’s first rate hike since April 2024, and the first time since November 2022 that it has tightened by 50 basis points. The size of the move surprised markets, and underscores how seriously policymakers are responding to the fallout from the war, which has pushed the rupiah to a series of record lows.
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The supreme courts of Singapore and Indonesia have signed a memorandum of understanding (MOU) that, for the first time, gives judges in both countries a formal channel for coordinating on the same insolvency or restructuring case, SingaporeLawWatch.sg reported. This reduces the risk of inconsistent outcomes, fragmentation of the insolvency process, poor recoveries, inefficiency and wastage of costs, said Kannan Ramesh, insolvency judge and judge of the Appellate Division of the Supreme Court of Singapore.
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Indonesia’s central bank held interest rates steady again, as the war in the Middle East casts a shadow over the Southeast Asian country’s economic outlook, the Wall Street Journal reported. Like its peers, Bank Indonesia is grappling with the economic fallout from the war, which has roiled energy markets, raised inflation risks and pressured the oil-sensitive rupiah. On Wednesday, the Indonesian central bank opted to leave its benchmark seven-day reverse repo rate at 4.75%, extending a pause stretching back to its last cut September.
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The Supreme Court of Singapore and the Supreme Court of Indonesia on March 30 signed a memorandum of understanding (MOU) to enhance cross-border communication and cooperation in cross-border insolvency proceedings, according to a press release. The signing ceremony was held on the sidelines of the inaugural Judicial Well-Being Workshop for ASEAN Judges in Bali, Indonesia, with The Honourable the Chief Justice Sundaresh Menon of Singapore and Chief Justice Prof. Dr. H. Sunarto, S.H., M.H. of Indonesia as the MOU signatories.
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The United States and Indonesia announced they have signed a trade deal, with Indonesia agreeing to open its borders wider to American goods, the New York Times reported. The deal, announced on Thursday, includes zero tariffs on virtually all U.S. exports to Indonesia and a 19 percent tariff on Indonesian goods. It formalizes an agreement the two countries made last July, making Indonesia the third country in Southeast Asia to lock in lower tariffs after Malaysia and Cambodia. Mr. Trump had threatened Indonesia with a 32 percent tariff at one point last year.
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Indonesian and U.S. companies on Wednesday signed deals worth $38.4 billion ahead of Indonesian President Prabowo Subianto's meeting with U.S. President Donald Trump to sign a final trade pact, the Indonesian government said in a statement, Reuters reported. The 11 deals, signed at a dinner for Prabowo hosted by the U.S. Chamber of Commerce, were for partnerships in mining, energy, agribusiness, textiles, furniture and technology sectors, according to the statement.
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