Saktiandi Supaat, head of global foreign exchange strategy at Maybank, comments on the Indonesian economy and the rupiah, following Monday's slightly disappointing GDP number.
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The rupiah has been one of the world's worst performing currencies this year, but Indonesia's Finance Minister said he was comfortable with its value.
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Chatib Basri, Finance Minister of Indonesia explains the measures the government is taking to stem capital outflows. He says their top priority is to improve the current account deficit.
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Frederic Neumann, co-head of Asian economics research at HSBC, says that the selling in Indonesia is in part due to a spill-over from India and that the situation is not as dire as the market suggests.
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Indonesia's central bank stepped in on Thursday to prop up the rupiah, intervening in the forex market and buying government bonds after selling by foreign investors drove the domestic currency sharply lower.**
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Toyota Motor said it will invest 2.9 trillion rupiah ($337 million) in Indonesia, building a new factory and rolling out a new model, in its second move this year to expand in the fast-growing car market.
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Indonesia's inflation slowed in June to a one-year low of 5.54 percent from a year ago, well within the central bank's target and strengthening expectations Bank Indonesia will hold rates this month and potentially for the rest of the year.*
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