JAKARTA: Indonesian authorities need to provide firm policy guidance and unveil concrete steps to improve sentiment after last week\u2019s sell-off that pummelled stocks and the currency, according to analysts, who say investors will remain unconvinced by assurances alone.<\/p>\n
Market participants will largely be in a wait-and-see mode ahead of Bank Indonesia\u2019s interest rate decision on June 18, and MSCI Inc\u2019s review of the country\u2019s investability later this month, analysts said.<\/p>\n
In the meantime, suggestions of a reshuffle of policymakers will add to uncertainty, they said, even as the Finance Ministry and central bank unveiled another measure over the weekend to support bond yields and attract inflows.<\/p>\n
\u201cThe next two weeks wil be critical,\u201d said Mohit Mirpuri, a partner at SGMC Capital Pte in Singapore.<\/p>\n
\u201cThe market is looking for clear signs of fiscal discipline, policy consistency and a strong commitment to macroeconomic stability.\u201d<\/p>\n
Mounting concerns over the government\u2019s economic management, confusion regarding new commodity export rules and revived concerns about Indonesia\u2019s sovereign credit profile have sent Indonesian assets downwards.<\/p>\n
Just five months after hitting a record high, the benchmark stock index has tumbled nearly 39% to become the worst performer this year among more than 90 global gauges tracked by Bloomberg.<\/p>\n
Last week was its poorest performance in more than four years.<\/p>\n
The rupiah has weakened about 8% to become the worst-performing currency in Asia this year as it fell to multiple record lows and breached a psychological level of 18,000 per dollar last week.<\/p>\n
While bonds also dropped, the decline was relatively modest as the central bank and Finance Ministry intervened in the market to keep yields, especially on 10-year debt, steady.<\/p>\n
Bank Indonesia governor Perry Warjiyo and Finance Minister Purbaya Yudhi Sadewa held a joint briefing last Saturday, pledging to maintain sufficient liquidity in the market, and to work together to boost yields and capital inflows. \u2014 Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"JAKARTA: Indonesian authorities need to provide firm policy guidance and unveil concrete steps to improve sentiment after last…\n","protected":false},"author":2,"featured_media":483069,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[14709,2195,114,4404,85,223667,66689,46,75170,135629,190,223668,223669,1011],"class_list":["post-483068","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bank-indonesia","tag-bond-yields","tag-business","tag-currency","tag-il","tag-indonesian-authorities","tag-interest-rate-decision","tag-israel","tag-jakarta","tag-macroeconomic-stability","tag-markets","tag-policy-guidance","tag-sovereign-credit-profile","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/483068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=483068"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/483068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/483069"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=483068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=483068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=483068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}