USD/IDR: Continued sideways trading around the 15,400-15,800 range – Commerzbank

USD/IDR is stable at around the 15,600 level following Indonesian general elections. Economists at Commerzbank analyze the pair’s outlook.

Indonesia to post steady growth of around 5.1% this year

Prabowo Subianto, 72 and the current Defence Minister, claimed victory in the Presidential election in Indonesia. Investors have taken the result positively. The strong result for Prabowo is viewed as a vote for policy continuity of the outgoing administration led by the still popular President Joko Widodo (Jokowi).

The result is positive for stability and predictability for the rest of the ASEAN. This is because Indonesia is the largest economy in ASEAN, comprising around 35%. We project Indonesia to post steady growth of around 5.1% this year. However, it has the potential to grow even faster at around 6-7%. 

For now, the FX market is taking the results positively and we continued sideways trading for USD/IDR around the 15,400-15,800 range.