Skip to content
Subscriber Only

Rupiah Rally Seen on Jokowi Victory by Morgan Stanley to Maybank

An Indonesian presidential victory by Joko Widodo would spark a rally in the rupiah, according to Malayan Banking Bhd. and Morgan Stanley. There’s only one snag: the popular Jakarta governor hasn’t been selected to run yet.

The currency will gain 7.6 percent to 11,300 per dollar by the end of the year should Jokowi, as he is known locally, win the July election, Saktiandi Supaat, head of foreign-exchange research at Maybank in Kuala Lumpur, said in a Feb. 5 interview. It would only advance to 11,700 if he doesn’t win, he said. Morgan Stanley sees the rupiah strengthening to 11,800 by end-June, assuming Jokowi is a presidential candidate.