Indonesia Fanancial Market Class: World Financial Market Instructor: Dr. Michael Barnes Student’s Name: Nguyen Ngoc Bao Linh Tan Tao University April, 2014
Economy 1.GDP steady growths over the years. 2.Economic Minister Hatta Rajasa said that "GDP of the country could increase billion in 2014" Many international economists believe that Indonesia can join BRIC group of emerging economies, including Brazil, Russia, China and India - the countries was expected to become the largest economy in the world in Source:
Inflation rate From 2007 to 2008, the CPI increased and then decreased sharply. From 2008 until now,CPI has trend no stable up or down. For three year, Indonesia's inflation rate has nearly doubled. According to the New York Times, Asia is being "storm" inflation swept over. Indonesia is suffering rising inflation Source:
Economic growth rate Years Growth rate Years Growth rate
Stock market Long term Indonesian stock market flourished in 5 years time.
Short term According to VOA, "Indonesia's stock market in April fall more than 3% after recording the main opposition party won the country's lower results than expected in parliamentary elections. "
Indonesia's Top Five Companies Ranked by Largest Market Capitalization List Company Name (Ticker) Market capitalization 2013 Earnings million IDR (% of total) Type of Industry 1. Astra International (ASII) 307,675,004 (7.46%) 9.20% Miscellaneous 2. HM Sampoerna (HMSP) 262,541,700 (6.36%) 23.30% Tobacco 3. Bank Central Asia (BBCA) 222,116,978 (5.38%) 8.34% Banking 4. Telekomunikasi Indonesia (TLKM) 182,447,993 (4.42%) 17.19% Telecom. 5. Unilever Indonesia (UNVR) 159,085,500 (3.85%) 16.23% Consumption
Bond Market Graph Indonesian interest rate BI - long-term graph
Graph Indonesian interest rate BI - interest rates last year The current Indonesian interest rate BI (base rate) is %
. According to the Central Bank of Indonesia (BI), the Indonesian rupiah depreciated 20% in At the end of 12/2013, the country's foreign exchange reserves rose $ 2.4 billion, from $ 97 billion to 99.4 billion dollars.
Recommendation I think Indonesia is a developing country with a stable economy, so investment in domestic financial markets is likely to bring profit. However, late 2013 and early 2014 the finance market had many variations so please cavity investment at this point.