Rupiah remains pressured as Indonesia’s Q4 GDP disappoints with 4.97%
Fundamental Forex Analysis

Rupiah remains pressured as Indonesia’s Q4 GDP disappoints with 4.97%

  • USD/IDR holds the higher ground after Indonesia’s Q4 GDP misses estimates.
  • Bank Indonesia’s (BI) intervention fails to support the rupiah.
  • China’s coronavirus outbreak impact weighs on the economy.

According to the latest release from Statistics Indonesia, the Indonesian economy contracted 1.74% in Q4 2019 versus -1.67% forecast and 3.06% prior to QoQ.

On an annualized basis, Indonesia’s GDP rate arrived at 4.97% compared to 5.04% expected and 5.02% earlier for the fourth quarter (Q4) 2019.

The GDP for full-year 2019 grew 5.02% from a year earlier, slower than 2018’s rate of 5.17%. The poll had forecast growth of 5.03%, per Reuters.

About Indonesia’s GDP

The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).

FX Implications

USD/IDR trades near daily highs of 13,730 on below-forecasts Indonesian GDP data, as the rupiah continues to bear the brunt of the rising coronavirus risks on economic growth.

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