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View all search resultsThe growing trend of de-dollarization, especially on the heels of the MOU to promote local currency use signed last month between the central banks of Indonesia and China as well as the global turmoil following Trump's tariff policy flip-flop, presents a strategic opportunity for Indonesia to strengthen its fiscal and monetary policies.
Indonesia shaved US$4.6 billion off its foreign exchange (forex) reserves in April as the government serviced foreign debts and the central bank intervened in the market to stabilize the rupiah’s exchange rate amid the tariff turmoil.
Statistics Indonesia’s (BPS) latest inflation data for March revealed a lower-than-expected headline inflation rate for the month, the lowest March inflation rate among Southeast Asian countries. The year-on-year (yoy) inflation rate was recorded at 1.03 percent, notably lower than prior projections of 1.17 percent and below Bank Indonesia’s target inflation range of between 1.5 and 3.5 percent.
The country’s headline inflation hovered at 1.03 percent year-on-year in March, Statistics Indonesia (BPS) production undersecretary M. Habibullah said in a press conference on Tuesday.
Markets in Indonesia have been closed since March 28 for public holidays, and trading will resume on Tuesday, April 8. Before the break, the rupiah had already been under pressure, dropping to its lowest levels since the 1998 financial crisis.
While the government has tried to curb growing worries over the depreciating rupiah, Apindo and economists have pointed to pass-on costs and "double inflationary pressures" as potential scenarios that should be anticipated.
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