Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,512) +26.00 +0.18%
EUR/IDR (16,454) +50.48 +0.31%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Most Asian markets started weak in the new trading week on persistent uncertainty about the timing of higher US interest rates after the US Federal Reserve decided to postpone a Fed Fund Rate hike last week. This context raises investors’ appetite for safe haven assets. By 13:45 pm local Jakarta time on Monday (21/09), Indonesia’s rupiah had depreciated 0.66 percent to IDR 14,469 per US dollar according to the Bloomberg Dollar Index, while the benchmark Jakarta Composite Index was down 0.22 percent to 4,370.63 points.
Goldman Sachs stated that Asian currencies, particularly the rupiah, baht, won and ringgit, remain fragile until the year-end amid looming higher US interest rates.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.08 percent to IDR 14,451 per US dollar on Monday as it still had to absorb the temporary strengthening of the rupiah that occurred last Friday.
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
One of the main strategies for the Indonesian government to boost the nation’s economic growth and raise investors’ confidence in Indonesian assets would be by increasing government budget realization (particularly infrastructure spending). Until 31 August the government only managed to spend 53.1 percent of the total budget (IDR 1,054.2 trillion) set in the Revised 2015 State Budget. Meanwhile, state revenue only stood at 49.2 percent of total targeted revenue in 2015.