The Group Financial Market (GFM) unit of PT Bank DBS Indonesia received the 2nd runner-up award in the Best Market Maker category at the FX LSEG Award Indonesia 2024, based on their foreign exchange market activity on the electronic trading platform throughout 2023. This award recognizes Bank DBS Indonesia’s active contribution to making the price discovery process more efficient in Indonesia's foreign exchange (FX) markets. The award was presented by Head of Sales APAC Workflow Solutions, London Stock Exchange Group Paul Charmatz, Head of Capital Market FX Sales, London Stock Exchange Group Tan Soo Cin, and Head of Financial Market Development Department, Central Bank of Indonesia Donny Hutabarat, who delivered a keynote speech, and represented by Managing Director & Head of Global Financial Markets PT Bank DBS Indonesia Puneet Punj.

As compared to the early 2024 outlook of a mild economic slowdown and inflation expected to drop to 2 percent, we now see stubborn inflation in the US with core Consumer Price Index (CPI) in a 3.5-4 percent range (YTD). The job market has also been strong, averaging 230,000 new jobs per month. On top of all of this, the US household wealth has also increased due to gains in equities, crypto, and real estate markets.

Market expectations have shifted from six rate cuts anticipated in early 2024 to fewer than two for the year, leading to narrowing yield differentials between emerging market bonds and U.S. Treasuries. Emerging market flows and currency movements have been volatile, affecting capital flows and eventually balance of payments in most emerging markets (EMs). The YTD trend in Indonesian Rupiah (IDR) has been in line with most Asian currencies. Additionally, Indonesia’s Foreign Direct Investment (FDI) inflows have been stable over the past few years.

The volatile component has been portfolio flows, however with Bank Indonesia's launch of Bank Indonesia Rupiah Securities (SRBI), there have been stable inflows from offshore into this instrument and Bank DBS Indonesia expects SRBI to reduce sharp swings in portfolio flows in 2024. By the end of 2024, Bank DBS Indonesia expects a Bank Indonesia (BI) rate of 6.25 percent, a Federal Funds Rate of 5 percent, a USD/IDR exchange rate of 15,800, and a 10-year Indonesian Government Bond yield of around 7 percent.

The outlook suggests a challenging yet resilient economic environment. Despite high inflation, the robust job market and increased household wealth indicate underlying economic strength. The shift in market expectations regarding rate cuts suggests a cautious approach to monetary policy, emphasizing stability.

For Indonesia, benign inflation, attractive real yields, relatively stable currency with sufficient FX reserves and strong economic growth projections offer a positive outlook. Having said the above, we must continue to be cautious of further DXY strengthening and decline in commodity prices.

Overall, the future points towards cautious optimism, with opportunities for growth in stable economic policies and continued investment in key sectors. These insights provide a critical understanding of the economic outlook, policy expectations, and market dynamics influencing both global and Indonesian economies.

Managing Director & Head of Global Financial Markets PT Bank DBS Indonesia Puneet Punj said, "PT Bank DBS Indonesia's recognition as the 2^nd runner-up in the Best Market Maker category at the FX LSEG Award Indonesia 2024 highlights our commitment to excellence in the FX market. This accolade underscores our robust activity and expertise in electronic trading platforms, further establishing Bank DBS Indonesia as a leading market maker in the industry. We are committed to serving our customers with unparalleled service and support."

Previously, Bank DBS Indonesia has also been a winner of the LSEG Indonesia FX Awards in 2023 and 2022.

For more information about Bank DBS Indonesia dan Global Financial Market please visit: https://www.dbs.id/

About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.

Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.

PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

Bank DBS Indonesia recognized as "Best Market Maker" from FX LSEG