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Bank Indonesia: Oct-23

• Contrary to the economic consensus, Bank Indonesia raised the BI7DRR by 25 basis points to 6.00%, highlighting a proactive approach to global economic challenges.
• Amidst broad-based US dollar appreciation, the rate hike serves as a buffer against potential depreciation of the rupiah and the ensuing imported inflation.
• Beyond interest rate adjustments, Bank Indonesia is employing a mix of monetary, macroprudential, and payment system policies to maintain stability and promote growth.

Indonesia Consumer Confidence Index 121.7 in Sep-23

- The Consumer Confidence Index in Indonesia declined to 121.7 in September 2023, the lowest level since December 2022, indicating a decrease in consumer optimism and potential impact on consumer spending.
- The index is 1.62 points below the one-year average, suggesting only a slight softening of consumer confidence.

Indonesia CPI Inflation 2.28% y-o-y (consensus 2.2%) in Sep-23

- Indonesia's CPI inflation rate for September 2023 was 2.28% y-o-y, showing a slightly smaller than expected (2.2%) decrease from the previous month.
- The current inflation rate is 2.12 pp lower than the one-year average and 2.24 pp below the long-run average.

Indonesia PMI Manufacturing 52.3 in Sep-23

- Indonesia's manufacturing sector experienced a slight slowing in September 2023, with the PMI registered at 52.3, the lowest level since May 2023.
- Despite the moderation in growth, the manufacturing sector has remained above the critical 50 threshold, indicating ongoing expansion.