“I’m afraid that when we really need to raise the reference rate, Bank Indonesia will have no ammunition left,” Anton Gunawan, chief economist at PT Bank Danamon Indonesia, said in the article. “There was no urgent need to raise the rate last week.”
The trade gap and potential tapering in U.S. stimulus pulled the rupiah down 18% this year.
Meanwhile, Indonesia’s gross domestic product only expanded 5.6% in the third quarter, the weakest since the global recession.
Indonesia country-specific ETFs include:
- iShares MSCI Indonesia ETF (NYSEArca: EIDO): down 21.2% year-to-date
- Market Vectors Indonesia Index ETF (NYSEArca: IDX): down 21.6% year-to-date
- Market Vectors Indonesia Small-Cap ETF (NYSEArca: IDXJ): down 15.9% year-to-date
iShares MSCI Indonesia ETF
For more information on Indonesia, visit our Indonesia category.