Business · Markets · 1 day ago

Commodity gains could support Indonesia, but rate and currency risks remain

Commodity gains could support Indonesia, but rate and currency risks remain

Higher coal and crude palm oil prices could increase Indonesia’s income because the country produces these commodities.

Investment Director Dimas Yusuf said this could benefit Indonesia amid global geopolitical tensions.

He also pointed to a government policy requiring some export earnings to be kept in Indonesia, which he said could strengthen the country’s foreign-exchange reserves.

But US interest-rate policy and a stronger US dollar could put pressure on the rupiah.

Investors are also watching a possible cabinet reshuffle under President Prabowo, though Yusuf said political stability matters more to foreign investors.

The competing pressures are important for Indonesia’s currency and financial markets.

The discussion did not specify which investment sectors investors would favor or what policy steps might come next.

Sources

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