New Indonesian Law Is Boosting Asia’s Worst-Performing Currency
- Rupiah may rise to 14,500 per dollar by year-end: CA
- Currency to be buoyed if Bank Indonesia leaves rates unchanged
This article is for subscribers only.
The Indonesian rupiah has languished at the bottom of Asian currency rankings for most of the year but a recent overhaul of the nation’s investment law may help revive its fortunes.
The rupiah rose about 1% against the dollar last week after Indonesia approved its first omnibus law aimed at cutting red tape to boost investments and create jobs. That’s after a loss of 4.1% in the quarter ended September amid concern over Bank Indonesia’s independence, debt monetization and an economy poised for its first annual contraction since 1998.