Indonesia Rupiah at Record Low Adds Intervention Pressure
The Indonesian rupiah declined to its weakest level in history as resurging concerns over the central bank’s independence add to persistent fiscal worries, Bloomberg reported. The rupiah slipped 0.3% to 16,988 per dollar on Tuesday, surpassing a record low from April when it fell below levels seen during the Asian Financial Crisis.
MSCI Rule Shift May Spur $2 Billion Exit From Indonesian Stocks
Global funds may withdraw more than $2 billion from Indonesian equities in coming months if MSCI proceeds with a change to its indexing methodology, underscoring concerns about the investability of Southeast Asia’s biggest stock market, Bloomberg reported.
Indonesian Government Eyes New State Textile Company to Save Sritex Workers
The Indonesian government plans to establish a state-owned enterprise in the textile sector, in part to keep the operations of bankrupt garment manufacturer Sritex running and to safeguard thousands of jobs, Jakarta Globe reported, citing State Secretary Minister Prasetyo Hadi.
Fitch Says Rated Indonesian SOEs Resilient Despite Larger Dividends to Danantara
Government support for Indonesian state-owned entities (SOEs) is likely to be stable, even as the newly established sovereign wealth fund, Danantara, adopts a more selective approach to equity injections and requires higher dividends from its investees, Fitch Ratings said in a statement.
Indonesian Parliament Urges Merger of State-Owned Builders
An official at an Indonesian parliamentary commission overseeing SOEs urged the consolidation of state-owned builders, Antara reported. Out of 28 sectors covered in the working plans last year, only the construction sector had to be carried over to 2026, Firnando Ganinduto said, adding that a bond default had affected local pension funds.