Bank Indonesia, Government Coordination 'Encouraging,' Nomura Says

The video discusses the challenges faced by Indonesia due to asset sell-offs and the high bond yield, which is at a 20-month high. It highlights the need for policy coordination between Bank Indonesia and the Ministry of Finance to manage currency pressures and support growth. The domestic economy shows signs of recovery, but external factors, especially from Turkey, remain dominant. Bank Indonesia is intervening in the FX market to support the currency and is considering future rate hikes, possibly aligning with the Fed's schedule.

What is the main reason for the high bond yield in Indonesia?

• High inflation rates

• Slump in the rupiah

• Strong GDP growth

• Increase in foreign investments

How is the Ministry of Finance expected to support Indonesia's economy?

• By expanding fiscal stance

• By increasing interest rates

• By cutting down on infrastructure spending

• By reducing foreign investments

What external factor is significantly affecting Indonesia's economy?

• Trade agreements with the US

• Economic situation in Turkey

• Political instability in Europe

• Economic policies in China

What strategy is suggested to improve Indonesia's investment outlook?

• Reducing government spending

• Decreasing interest rates

• Boosting infrastructure spending

• Increasing export tariffs

Why has Bank Indonesia shifted its meeting schedule to coincide with the Federal Reserve?

• To align with global economic trends

• To reduce the influence of external factors

• To increase transparency in policy decisions

• To respond flexibly to Fed rate hikes