The economy grew impressively, BI remained Dovish. Indonesia’s GDP 2Q22 YoY grew expansive up to 5.44% (Vs. Surv. 5.17%; 1Q22 5.01%), reassuring BI to remain Dovish and maintain the momentum of the gradual domestic economy recovery, in addition to Core CPI which was maintained below 3%YoY. Meanwhile, investors are still watching the July Foreign Reserves, which fell 3% MoM to USD132.2B, slightly reducing BI’s room amidst the volatility of the Rupiah at IDR14,830/USD IDR14,940/USD in early August. Within a week, the JCI consistently closed higher or near the psychological level of 7,100 in last Friday’s trading. This strengthening relatively ignored the potential for a US recession, after the yield inversion of UST2Y Vs. UST10Y up to 36Bps, or the widest gap since 2000; and the escalating China-Taiwan political escalation.
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