So far, Quantitative Easing continuation don’t help rupiah to be stronger. The only good news is deflation occurred on last report. In our view, we should not to give “award” to our government because on the previous report the CPI inflated too high. So it’s a normal situation when the market find new equilibrium by lowering. The government’s new policies remain unclear and can not to be executed in short-term.
The next serious problem come from Idul Adha party. The party will add liquidity in market and drive the CPI to hike again. Labor strike risk should be concerned too. Labor organizations mobilize their member to ask other labors to force the government to sign the minimum wage policy. Both of them add more pressure to rupiah too.
idxstock 