Update COVID-19 in Indonesia: 1,298,608 confirmed infections, 35,014 deaths (23 February 2021)
23 February 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,272.81) +17.50 +0.28%
Technically the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) had to rebound after sharp declines during the last couple of trading days making Indonesian stocks relatively cheap. The IHSG was also supported by rising stock indices in Japan and Hong Kong that rose on strong US jobs data (although other Asian markets fell due to concerns about sooner-than-expected US interest rate hikes. Meanwhile, the rupiah continued to depreciate as the market is concerned about the political situation in Indonesia.
Particularly agricultural commodity, miscellaneous industry and financial stocks were able to lift the Jakarta Composite Index up by 1.03 percent to 5,000.14 points on Monday (06/10).
US government data show that employers added 248,000 jobs in September 2014, beating market expectations. Meanwhile, US unemployment fell to a six-year low of 5.9 percent. On Wednesday, the Federal Reserve is due to release minutes the FOMC meeting last month. The market will be keen to search for clues about the timing of the looming US interest rate hike.
The Indonesian rupiah exchange depreciated 0.28 percent to IDR 12,212 per US dollar according to the Bloomberg Dollar Index on Monday (06/10). As such, the currency continued its depreciating trend. This is partly caused by concern that president-elect Joko Widodo (Jokowi) will face tough parliamentary opposition, and which may thwart his reform agenda. This opposition (called the Merah-Putih coalition) is led by defeated presidential candidate Prabowo Subianto and controls over half of seats in parliament. As a result of these political troubles, Indonesia witnessed the largest weekly outflow of stocks this year in the past week.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.56 percent to IDR 12,212 per US dollar on Monday (06/10).