Inflation: Indonesia’s Competitive Factor
Indonesia having the financial stability amid the threat from the Fed’s monetary normalization stance is one of investment priorities.
Fundamental Factors Guarding Rupiah Stability
Since the global market volatility appeared in the end of January 2018, rupiah as one of emerging currencies depreciated by 3.3%. The global volatility arising from the possibility of the Fed’ faster monetary tightening pace causes global investors to review the trend of massive depreciation occurred in 2013-2015 bolstering rupiah to stand in the highest position of 14,693. However, rupiah standing stably at the range of 12,900-14,000 within the last two years (2016-2018) is a robust fundament al factor curbing further depreciation as such rupiah is capable of being destabilized only by a stronger potent driver.
Download full report HERE.