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An analysis from the University of Indonesia's LPEM describes the Bank Indonesia March 2020 policy meeting and the market turmoil behind it. Indonesia's portfolio outflows reached USD 8.1 billion after COVID-19 spread, and the rupiah weakened to around 15,200 per dollar.
Bank Indonesia has responded with forex and DNDF injections, lower FX reserve requirements and rate cuts.
Capital flight and the resulting rupiah weakness raise the cost of dollar-denominated feed imports for Indonesian buyers. Intervention that supplies dollars may ease but not eliminate that cost pressure.
en.lpem.orgMar 19, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
