Business · Markets · 11 hrs ago

Commodity gains may support Indonesia as rupiah faces pressure

Commodity gains may support Indonesia as rupiah faces pressure

Investment Director Dimas Yusuf said rising coal and palm oil prices could benefit Indonesia because the country produces those commodities.

He also said a policy requiring exporters to manage foreign-exchange proceeds helps strengthen the country’s foreign currency reserves.

But the rupiah remains under pressure from interest-rate policy and a stronger US dollar.

These are issues for Bank Indonesia to watch.

Investors are also paying attention to possible cabinet changes under President Prabowo.

Yusuf said that issue has had little effect on markets, while political stability matters more to foreign investors.

The competing pressures could shape investment choices and which sectors attract attention, though no specific outlook was given.

Sources

Related news