Composite Stock Price Index (CSPI/IHSG) rebound from 5,900 levels to the level of optimism touching at 6,068.32 today. The strengthening of Rupiah at 13,995 today also trustfully gives a remarkably positive exposure in the stock market after depreciating recently to the worst performers among Asian currencies, causing several producers using raw materials originating from outside the country rise the prices and other imported products also adjust to the selling prices to consumers.
As a pace of attenuating the exchange rate fluctuation, on May 17 Indonesia Central Bank just took action to raise its benchmark interest rate on 25 bps (basis points) to 4.5 percent from previously of 4.25 percent for the first time since April 2018 after the Rupiah touched 14,000 per US dollar. Fundamentally, Indonesia macro economy still performs quite powerful because of an adequate amount of reserve assets, better monetary policy and real infrastructure development.
As a result, investors temporarily do not lose their nerves in the middle of up-and-down circumstances affected globally from United States-China trade war to the Fed Fund Rate increase for four times gradually in this year of 2018. Additionally, they are no necessarily to stay worried in these conditions and remain convinced that Indonesia still has a promising capital market.