# BCA - Weakening consumption: a cautionary tale for the Indonesian economy

> A BCA research note says consumption in Indonesia is weakening and that shifting market expectations are putting depreciation pressure on the rupiah. It notes a resilient US labour market and loose liquidity may keep the Fed on a tighter-for-longer path. It also warns that a narrowing trade surplus and smaller rate spread will test the rupiah.

- Date: 2023-02-14 · published 2023-02-14T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/37660-bca-weakening-consumption-a-cautionary-tale-for-the-indonesian-economy
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Rupiah depreciation raises the local cost of imported feed ingredients and can soften domestic demand for animal protein. A tighter-for-longer Fed would keep pressure on emerging-market currencies.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- bca.co.id: https://www.bca.co.id/en/tentang-bca/media-riset/news-and-features/berita-bca/2023/02/14/03/04/weakening-consumption-a-cautionary-tale-for-the-indonesian-economy

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.