The rupiah strengthened on Monday (July 11) as market welcomed the implementation of Tax Amnesty Bill, which is expected to bring home Rp560 trillion in offshore assets. The Central Bank (Bank Indonesia/BI) noted that the Rupiah reflected the fundamentals of Indonesia’s economy, and that it would intervene in the currency market for protecting the rupiah from widely moving up or down for the sake of export. For local feed producers, the rupiah appreciation would benefit cut import cost of raw materials, and that the appreciation would mostly help them avoiding loss from foreign exchange (forex) as they have huge dollar debt exposures.
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