USD/IDR Price News: Rupiah sits at three-month lows near 14,570 on Indonesian FinMin’s comments

Indonesian Finance Minister Sri Mulyani Indrawati said Friday that the economic recovery will be impacted by a new wave of coronavirus infections.

Additional comments

Tighter restrictions will impact private consumption in Q3.

Indonesia will spend 18.04 trillion rupiah for cash assistance during new covid restrictions.

10 mln households in total to receive cash assistance until August.

Some electricity bill reliefs extended until September.

7.58 trillion-rupiah spending allocated for electricity bill discounts.

Will accelerate disbursement of village fund, estimated at 28.8 trilion rupiah, for cash assistance for 8 mln households.

Total spending for healthcare will rise to 185.98 trillion rupiah from 172.84 trllion rupiah previously.

Q2 economic activity relatively not much affected by rising covid cases.

Still using 7.1%-7.5% for Q2 GDP growth forecast.

Q3 outlook will be weaker than earlier forecast of 6.5%.

New Q3 outlook will depend on how long restrictions will last.

USD/IDR sits at multi-month highs

USD/IDR keeps the bullish momentum intact on the above comments.

The spot currently trades at 14,562, up 0.43% on the day, having reached three-month highs at 14,572.50 earlier on.