Event
A sharp steepening of the sovereign yield curve has led to a break in the IDRand a decline in the JCI by 3% intraday. We continue to expect the market totrade flat to lower through the year-end in response to the currency move anduncertainty.
We highlight that a continued strength in commodity prices will be a powerfulmedium-term driver of the Indonesian economy, should stimulus occur incountries, including China.
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