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%
Although Indonesia's currency, the IDR rupiah, has continued its weakening trend, Indonesian authorities are reassuring the people that this development is not as much caused by domestic factors but rather due to the rising US dollar against other currencies. According to data from Bank Indonesia, the Indonesian rupiah has weakened 5.99 percent to the US dollar in 2013. It is also clear that the central bank of Indonesia has decided to let the rupiah depreciate gradually instead of using its foreign exchange reserves to support the currency.
Indonesian banks continue to post good financial results in the first six months of 2013. These banks include Bank Negara Indonesia, Bank Central Asia, Bank Mandiri, Bank Internasional Indonesia, all of which posted growth in net income between 15 and 30 percent.
An economist at the Deutsche Bank said that the rupiah may depreciate a further three to four percent and that Bank Indonesia’s benchmark interest rate (BI rate) could rise by an additional 75 to 100 basis points. Bank Indonesia raised the BI rate twice in the last two months in order to mitigate inflation and support the rupiah. Currently, the interest rate stands at 6.50 percent.
Growth of Regional Benchmark Stock Indices and Currencies
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data taken from 1 January to 26 July 2013