Indonesia Political Risk Analyst

Kevin O’Rourke

Reformasi

FX & Rates

<p>Amid relentless currency weakness, the president and economic officials have reiterated plans to curb non‑strategic imports and help exporters boost short‑term production.  Capital market regulators are also issuing warnings about currency speculation.  Among the measures planned, a hike for income tax payable on consumer‑good imports may prove the most consequential.  None of the planned policy initiatives address two of the fundamental contributors to the rupiah’s weakness: below‑market pricing of fuel, which encourages over‑consumption of imported oil; and conditions for investment, which suffer from excessive restrictions, persistent graft and unpredictability in the legal system.   </p>

Amid relentless currency weakness, the president and economic officials have reiterated plans to curb non‑strategic imports and help exporters boost short‑term production.  Capital market regulators are also issuing warnings about currency speculation.  Among the measures planned, a hike for income tax payable on consumer‑good imports may prove the most consequential.  None of the planned policy initiatives address two of the fundamental contributors to the rupiah’s weakness: below‑market pricing of fuel, which encourages over‑consumption of imported oil; and conditions for investment, which suffer from excessive restrictions, persistent graft and unpredictability in the legal system.   

Rupiah Pressure: Politics Drive Policy Response

Indonesia

The Indonesian rupiah is the official currency of the Republic of Indonesia. 

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Rupiah Pressure: Politics Drive Policy Response

Amid relentless currency weakness, the president and economic officials have reiterated plans to curb non‑strategic imports and help exporters...

Kevin O’Rourke

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)