If Greece and its European creditors fail to reach an agreement, then Greece will default on its debt and the country’s future in the Eurozone and European Union will be highly uncertain. A Greek exit (Grexit) from the euro implies serious risks for the whole financial system of the Eurozone. Before 30 June 2015 Greece needs to make a 1.6 billion euro debt payment to the IMF. At the start of the week global stock markets surged on expectation that a deal between both sides would be reached quickly after the Greek government sent some new hopeful proposals to its creditors. But as several days have passed without news of a deal, but rather of the continuation of a stalemate, markets are now down turning negative again.

Due to the stalemate between both sides, stock indices on Wall Street and Europe fell on Wednesday (24/06) and most Asian indices followed this example after trading opened on Thursday. Despite US GDP declining at an upward revised annual rate of 0.2 percent in the first quarter of 2015 (from the 0.7 percent contraction reported earlier), Wall Street was down.

Indonesia’s benchmark Jakarta Composite Index (IHSG) fell 0.68 percent. Foreign investors recorded net selling of IDR 150.3 billion (USD $11.3 million) thus placing downward pressure on the index. Other factors that still continue to haunt the IHSG is uncertainty about the timing of higher US interest rates as well as Indonesia’s economic slowdown and expected higher June inflation.

Jakarta Composite Index (IHSG):

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.32 percent to IDR 13,323 per US dollar on Thursday (25/06).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia