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%
In line with most Southeast Asian stock markets and currencies, Indonesian stocks and the rupiah were rather flat with a tendency to weaken slightly on Tuesday (17/02). Most investors seem to avoid trading in this short trading week (On Thursday 19 February markets will be closed due to Chinese New Year celebrations). Moreover, market participants in Indonesia are waiting for the central bank’s interest rate decision later today. Lastly, failed talks between Greece and its creditors on Monday dented sentiment across Asia.
Later today, Indonesia’s central bank will announce its February policy rate. Analysts expect that the country’s key interest rate (BI rate) will remain at 7.75 percent despite inflation having eased sharply to 6.96 percent (y/y) in January 2015 (from 8.36 percent y/y in the previous month) as the impact of higher subsidized fuel prices (introduced by the government in November 2014) diminishes (in January these prices were lowered and - in fact - reformed amid low global oil prices).
On Monday (16/02), discussions between the new Greek government and its European creditors collapsed, triggering concerns that it has moved one step closer to a Greek exit (‘Grexit’) from the euro. Talks between both sides may recommence on Friday but only if Greece is willing to extend its bailout package (which includes a list of austerity measures that the Greek government vowed to pare back).
By 15:25 pm local Jakarta time, the rupiah exchange rate had depreciated 0.07 percent to IDR 12,761 per US dollar. Meanwhile, the benchmark Jakarta Composite Index had fallen 0.03 percent to 5,323.83 by the same time.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.18 percent to IDR 12,757 per US dollar on Tuesday (17/02).| Source: Bank Indonesia