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The interest rate gap between Indonesia and the United States has narrowed to 275 basis points, down from 400 at the start of 2017. Bank Indonesia held its 7-day repo rate at 4.25 percent, while the Fed raised rates by 25 basis points to 1.5 percent on December 13.
Domestic political tensions ahead of 2018 regional elections are also prompting investors to favor dollars.
A narrower rate differential makes the rupiah more vulnerable to depreciation, which would raise the local cost of imported feed inputs.
databoks.katadata.co.idDec 14, 2017Not 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.
