Indonesia to take action to support the rupiah

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indonesian-rupiahThe Indonesian government and central bank have indicated that they will take concerted action to prevent further depreciation of the rupiah and to support the flagging economy.

The rupiah has fallen 4 per cent this week, and the stock market has slipped 8.7 per cent. Indonesia’s current account deficit widened to a record amount in the second quarter, as the economy suffered a slowdown in exports and the slowest growth in foreign direct investment in three years.

President Susilo Bambang Yudhoyono is expected to announce plans on August 23 to introduce fiscal stimulus and a tax holiday for companies. The government will also speed up a planned liberalisation of limits on foreign investment in certain industries, according to Bloomberg News.

The Indonesian economy has grown as over four per cent since Yudhoyono took office in 2004. Growth has slowed over the last year, dropping below 6 per cent in the second quarter of this year for the first time since 2010. Yudhoyono told reporters on August 21 that it will be hard to achieve the government’s target of 6.3 per cent for the rest of this year.

The rupiah fell 0.4 per cent, to 10,818 to the US dollar, on August 22. This is the lowest the rupiah has traded since April 2009.

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Reading Time: 1 minute

The Indonesian government and central bank have indicated that they will take concerted action to prevent further depreciation of the rupiah and to support the flagging economy.

Reading Time: 1 minute

indonesian-rupiahThe Indonesian government and central bank have indicated that they will take concerted action to prevent further depreciation of the rupiah and to support the flagging economy.

The rupiah has fallen 4 per cent this week, and the stock market has slipped 8.7 per cent. Indonesia’s current account deficit widened to a record amount in the second quarter, as the economy suffered a slowdown in exports and the slowest growth in foreign direct investment in three years.

President Susilo Bambang Yudhoyono is expected to announce plans on August 23 to introduce fiscal stimulus and a tax holiday for companies. The government will also speed up a planned liberalisation of limits on foreign investment in certain industries, according to Bloomberg News.

The Indonesian economy has grown as over four per cent since Yudhoyono took office in 2004. Growth has slowed over the last year, dropping below 6 per cent in the second quarter of this year for the first time since 2010. Yudhoyono told reporters on August 21 that it will be hard to achieve the government’s target of 6.3 per cent for the rest of this year.

The rupiah fell 0.4 per cent, to 10,818 to the US dollar, on August 22. This is the lowest the rupiah has traded since April 2009.

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