| Source: Bank Indonesia


The depreciation of the rupiah was also brought about by increasing month-end dollar demand from local companies. But the most serious problem remains to be the current account issue because Indonesia's currency is regarded as the most vulnerable Asian currency to capital outflows when the Federal Reserve starts winding down its quantitative easing program, which has fueled dollar inflows into emerging markets.  


Indonesia Stock Exchange

The benchmark stock index of Indonesia (IHSG) rose slightly on Wednesday's trading day (27/11). Foreign investors were finally back to purchase more stocks than they sold. Foreign net buying was recorded at IDR 145.14 billion (USD $12.4 million). The IHSG rose 0.38 percent to 4,251.49 points. Of the sectorial indices, Indonesia's infrastructure index performed best as it rose 2.58 percent.

Discuss