Update COVID-19 in Indonesia: 64,958 confirmed infections, 3,241 deaths (6 July 2020)
6 July 2020 (closed)
USD/IDR (14,566) +50.00 +0.34%
EUR/IDR (16,379) +36.63 +0.22%
Jakarta Composite Index (4,988.87) +15.07 +0.30%
Despite weakening stock indices in the United States on Friday (14/06), most Asian indices were up on Monday (17/06) and impacted positively on the main index of Indonesia (IHSG). On the other hand, market participants are still waiting for the outcome of the plenary session of Indonesia's House of Representatives (DPR) regarding the approval of the increase in the price of subsidized fuel. The market is speculating that the price increase will be approved even though a number of political parties oppose the plan.
Today, the IHSG climbed to the level of 4,800 points but was not able to stay there for long as the atmosphere in the DPR intensified. However, investors seem to be confident that the government's proposal to raise the price of subsidized fuel will be approved and this optimism is what kept the IHSG in the green zone throughout the day. Moreover, when European indices mostly opened positive on Monday, it was an extra pillar of support for Indonesia's main index. At the end of the trading day, the index stood at 4,774.50 points, a 0.29 percent increase.
The IDR rupiah rebounded slightly as it was supported by various rising currencies in the Asia Pacific, although the Japanese Yen weakened. China's Yuan gained after China's central bank increased its reference rate by 0.01 percent to 6,15980. South Korea's Won also gained after its government announced that it has a number of instruments at its disposal to stabilize its domestic foreign exchange market against external shocks. Market players are also speculating that the Federal Reserve will maintain its low interest rate and continue its stimulus program. The speculation about the Fed also led to rises in most Asian stock indices.| Source: Bank Indonesia