Ie pointed to rebounding consumer spending and an unexpected trade deficit in April was proof that local businesses are confident about future sales. Ie projects the Jakarta Composite to hit 7,100 by the end of next June if not the end of this year. The Jakarta Stock Exchange Composite Index was hovering around 5,947 Thursday.
Indonesian stocks also strengthened as new Bank Indonesia Governor Perry Warjiyo pledged on his first day on the job to take more pre-emptive measures to maintain stability in the rupiah currency.
The central bank would become more preemptive in its search for stability amid pressures facing the currency. “We are planning to become more preemptive, frontloading, more ahead of the curve in the interest rate response,” Perry said, according to The Jakarta Post.
Perry also added that the central bank will continue its dual intervention policy to support markets by supplying forex to the monetary market to maintain liquidity and buying government debt in the secondary market. The central bank had acquired almost Rp 50 trillion, $3.52 billion, to purchase government bonds sold by foreign owners.
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