The continued weakening of the rupiah and foreign fund outflows have a broader impact on banking as BI carried out many foreign exchange swap auctions to increase dollar.
Smartfren posted huge losses during the first three months of this year. Sinar Mas Group is rumoured to be reviving this telecommunication business wing in an inorganic way.
Investment managers are considering three new indexes on the Indonesia Stock Exchange (IDX) as references for the issuance of their mutual fund products.
BI’s increase of the seven-day reverse repo rate is expected to dampen rupiah depreciation, but there are doubts it will strengthen the rupiah, and instead will hoist loan interest.
Electronic money service providers must strengthen their capital. BI set minimum paid-in capital at Rp 3 billion and raised ongoing capital in line with increasing floating funds.
The operators of Pizza Hut and The Duck King will sell their shares through IPOs on the Indonesia Stock Exchange to support the expansion of their restaurant outlets.
Moody’s is concerned about the withdrawal of foreign funds from the Indonesian market and the weakening rupiah, which narrow the government’s ability to obtain cheaper loans.
A surge in food imports caused the highest trade deficit of President Joko’s government. This could have a knock-on effect on the weakening rupiah and economic growth.