2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

Source: Reuters, Bloomberg (calculated) 28-Jan 22-Feb 19-Mar 13-Apr 8-May 2-Jun 27-Jun 22-Jul 16-Aug 10-Sep 5-Oct 30-Oct 24-Nov 19-Dec 13-Jan 7-Feb 3-Mar Movement of Rupiah a.o 15 Des' 21 Quarterly Average Exchange Rate In Line with Fundamentals Monthly Average IDR/USD 15,711 14,673 14893 14,494 15,179 14,5 14,800 14,381 14,22 14,232 14254 14,113 14120 13,714 14,855 14,708 1437 - 14157 14320 14,529 14399 14,387 14,180 15,000 14,25 14.2 14,366 14,500 14332.5 14,201 14754 14134 140641421 14,105 14,12 14,141 14,023 14,031 14,006 14,044 14,378 14254 28-Mar 22pr 17-May 11-Jun 6-Jul 31-Jul 25-Aug 19-Sep 14-Oct ΛΟΝ-8 3-Dec 28-Dec 22-Jan 16-Feb 13-Mar Apr May 27-May 21-Jun 16-Jul 10-Aug 4-Sep 29-Sep 24-Oct 18-Nov 13-Dec Rupiah Exchange Rate Fared Relatively Well Compared to Peers YTD 2021 vs 2020 TRY -50.15 -19.80 THB ZAR JPY EUR BRL KRW PHP point-to-point average MYR INR As of 15-Dec-21 SGD IDR CNY -60.0 -50.0 -10.37 -2.03 -8.53 11.28 -9.51 -2.59 -8.94 3.66 -8.74 -4.74 -8.40 3.22 -4.64 0.78 -4.57 1.37 -3.84 0.22 -3.07 2.66 -1.97 1 1.60 2.45 6.93 Rupiah Exchange Rate Volatilty a.o 15 Dec 2021 % 100 90.28 80.93 Oct-21 90 Nov-21 80 Dec-21 25.21 26.94 1610116.42 3.51 11.10 5.01 11.12 5.23.12 5.7379.25 3.08.28393 5.04 232 70 60 50 40 30 13.586 20 3.34.592.9.21 10 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 BRL ZAR TRY IDR KRW THB MYR INR SGD PHP 17,000 16,500 16,000 15,500 14,000 13,500 13,000 In response to external sector resilience and Bank Indonesia's stabilisation measures, rupiah exchange rate movements remain under control despite continued global financial market uncertainty. As of 15th December 2021, the value of the rupiah depreciated slightly by 0.07% (ptp) and 0.70% on average compared with the November 2021 level. The weaker rupiah stems from foreign capital outflows despite a maintained domestic supply of foreign exchange and the positive perception of investors concerning the promising domestic economic outlook. Compared with the level at the end of 2020, therefore, the rupiah has depreciated by 1.97% (ytd), which is relatively lower than the depreciation experienced in several other developing economies, namely India (3.93% ytd), the Philippines (4.51% ytd) and Malaysia (4.94% ytd). Bank Indonesia continues to strengthen rupiah exchange rate stabilisation policy in line with the currency's fundamental value and market mechanisms through effective monetary operations and adequate market liquidity. 53 33
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