Indonesia’s central bank hit the pause button again, holding rates steady after a surprise cut last month as it monitors currency headwinds and rising external risks, the Wall Street Journal reported. Bank Indonesia kept its benchmark seven-day reverse repo rate at 5.75% on Wednesday, in a decision analysts had expected to be a close one. Five out of seven economists polled by The Wall Street Journal had forecast a hold, while two had projected a 25-basis-point cut.
Read more
Indonesia
Indonesia is seeking to diversify its markets as global protectionism intensifies, while also taking steps to defend its local manufacturers, Deputy Trade Minister Dyah Roro Esti Widya Putri said, Bloomberg News reported. “Trump’s statements on tariffs are quite shocking in a lot of ways, but we think Indonesia could maximize its market potential if the US imposes tariffs on Chinese goods,” Roro said in an interview in Jakarta late Wednesday.
Read more
Some 15,000 workers from PT Sri Rejeki Isman Textile, or Sritex Group, planned to take to the streets in Jakarta to protest the Supreme Court (MA) that rejected an appeal to revoke Sritex's bankruptcy status, which had previously been decided by the Semarang Commercial Court, Tempo.Co reported. Sritex Group Workers Union Advocacy Coordinator Slamet Kaswanto said the demonstration would be directed to the MA.
The Indonesian government said it has prepared a Rp20 trillion credit facility for labor-intensive industries in 2025, including garments, textiles, footwear, furniture, food and beverages, and children’s toys, Tempo.Co reported. The incentive is aimed to stimulate growth for labor-intensive industries and create new jobs, said the Coordinating Minister for Economic Affairs, Airlangga Hartarto. “The government offers a sufficient interest subsidy to reach the projected investment loan target of Rp20 trillion in 2025,” said Airlangga in an official statement quoted on Wednesday, Dec. 25.
Indonesia’s Supreme Court has upheld the bankruptcy ruling on distressed textile company PT Sri Rejeki Isman, according to people familiar with the decision, risking layoffs for tens of thousands of its employees, Bloomberg News reported. The court on Wednesday rejected the appeal from Sritex - as the company is more commonly known - to overturn a lower court ruling in October that declared the company bankrupt. The ruling will raise uncertainties for the company’s roughly 50,000 employees.
Read more
Indonesia’s apparel maker PT Pan Brothers avoided bankruptcy after it secured creditors’ approval to restructure 8.6 trillion rupiah ($537 million) of debt, Bloomberg News reported. More than 90% of the creditors gave their nod on the company’s latest debt proposal, according to Khusaini, a judge at Indonesia’s Jakarta court, after a voting on Wednesday. “The result will be formalized in a consultative meeting on December 23,” Khusaini, who goes by one name, said.
Read more
Indonesia’s central bank stood pat again at its December policy meeting, continuing to hold rates steady for a third straight time as it looks to support the rupiah and the economy, the Wall Street Journal reported. Bank Indonesia’s decision to keep its benchmark seven-day reverse repo rate at 6.00% on Wednesday had been expected to be a close one. Four out of seven economists polled by The Wall Street Journal had forecast a hold, while three had projected a 25-basis-point cut.
Read more
Distressed textile giant PT Pan Brothers is closing in on its debt restructuring after seven months of negotiation with creditors, according to people familiar with the matter, as it works to avoid becoming the second Indonesian clothesmaker to be declared bankrupt this year, Bloomberg News reported. Creditors will vote Wednesday on the latest 8.6 trillion rupiah ($537 million) restructuring proposal by Pan Brothers, Bloomberg News reported earlier.
Read more
Indonesia said it intervened aggressively in the market to curb the rupiah’s decline as the currency weakened past the key psychological level of 16,000 against the dollar, Bloomberg News reported. “We entered the market with a quite bold triple intervention,” Edi Susianto, executive director for monetary and asset securities management at Bank Indonesia said in text message Friday. Authorities entered the spot, domestic non-deliverable forward and government bond markets to maintain market confidence, he said. The rupiah dropped 0.5% to 16,002 per dollar on Friday.
Read more
Indonesia has opened a six-month window until May 2025 for certain businesses to receive full loan forgiveness from state banks, a policy that aims to boost loan and economic growth, according to details of a new regulation, Reuters reported. Indonesia's President Prabowo Subianto last week signed off on a government regulation that allows state lenders to fully write off bad debts of certain micro, small, and medium enterprises (MSMEs), which are major contributors to Indonesia's gross domestic product.
Read more