Tax & Spend
Rupiah Slumps on Scaled-Back Tax Hike Even as Finance Chief Downplays Deficit
- President Prabowo pared planned VAT Hike on New Year’s Eve
- Move raises questions on how Prabowo will fund his programs
The rupiah was by far the biggest loser on Thursday among the most-actively traded Asian currencies.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Bank Indonesia intervened to stabilize the rupiah after President Prabowo Subianto’s surprise decision to scale back a tax hike sent the currency weakening by nearly 1%.
The central bank was in the market on Thursday to maintain the balance of foreign exchange supply and demand, according to director for monetary and asset securities management Edi Susianto.