Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
The Indonesian rupiah exchange rate appreciated 0.86 percent to IDR 11,678 per US dollar on Monday (11/08) according to the Bloomberg Dollar Index. The rupiah was supported by internal and external factors. On the internal side, the rupiah strengthened as the Constitutional Court is expected to dismiss defeated presidential candidate Prabowo Subianto’s appeal. Former army general Subianto challenged the official election result, claiming that massive violations occurred at polling stations and during the counting process.
Furthermore, Last Friday (08/08), Bank Indonesia announced that Indonesia’s foreign exchange reserves increased to USD $110.5 billion at the end of July (from USD $107.7 billion in June) on receipts from the Euro bonds issued by the Indonesian government, foreign exchange earnings from oil and gas exports, and buoyant foreign capital. These reserves now cover 6.4 months of imports or 6.2 months of imports and servicing of government external debt repayment (which is well above international standards).
On the external side, macroeconomic data from China supported Indonesia’s currency. Most Asian stocks and currencies were up as China’s inflation rose 2.3 percent (year-on-year) in July, below the government’s target of 3.5 percent for 2014, meaning that China’s government still has room for monetary easing. Moreover, at the end of last week, the world’s second-largest economy announced that it recorded a USD $47.3 billion trade surplus last month, with exports surging 15.4 percent (month-on-month), far above market participants’ expectations. An improving Chinese economy is expected to impact positively on Indonesian exports as China is one of the most important trading partners of Indonesia.
Higher indices on Wall Street on Friday (08/08) after Russia stated that warplanes ended drills near Ukraine also helped to support global indices and currencies on Monday (11/08).
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.80 percent to IDR 11,728 per US dollar on Monday (11/08).
The benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) climbed 1.18 percent to 5,113.24 points.