Update COVID-19 in Indonesia: 2,491 confirmed infections, 209 deaths (6 April 2020)
3 April 2020 (closed)
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Jakarta Composite Index (4,623.43) +91.74 +2.02%
The Today's Headlines section of Indonesia Investments is a daily updated section which contains the latest information with regard to topics that are currently causing headlines in Indonesia's media. Most of our headlines will cover political, economic and social matters. As a consequence of their recent nature, these topics may not have crystallized fully yet and can, therefore, lack a profound analysis. For publications with a more in-depth understanding of subjects, we refer you to our News, Financial or Business columns.
Bank Indonesia, the country's central bank, continued its key interest rate at the level of 5.75 percent. The interest rate has been at this historic low level for the 12th month in a row. The current policy rate is "considered consistent with the contained inflationary pressure in accordance with its target range of 4.5 percent ± 1 percent in 2013 and 2014," according to the website of Indonesia's central bank.
Bank Indonesia's foreign exchange reserves have fallen by US $4 billion to US $108.8 in January from US $112.8 in December 2012. The current reserves translate to six months of imports and short-term government debt payments. Reasons behind the four percent decline are massive spending by Indonesia's Central Bank to support the weakening IDR rupiah in combination with overseas debt payments.
Today, the governor of the Riau province (on Sumatra), Rusli Zainal, was officially declared a suspect by the Corruption Eradication Board (KPK). Zainal is accused of taking bribes from the management of state-controlled Adhi Karya, a construction company, in exchange for a contract to build facilities for last year's National Games in Pekanbaru, the capital city of Riau. The KPK stated that they found convincing evidence to underpin its allegation.
In late 2012, the local Jakarta government decided to increase the monthly minimum wage to IDR 2.2 million (US $229), a 44 percent increase from the previous standard. This rigorous change was one of the first policy changes of the newly elected Joko Widodo administration. Joko Widodo (often referred to as Jokowi) enjoys huge popular support and, similar to Barrack Obama at the start of his reign, provides hope to Jakartans, who have high expectations of his administration.
