29 Oct 2024 | News & Feature

TFP W44 2024: Not much to gain for the new kid on the bloc

  • Activities in the Indonesian financial market remains relatively subdued, as the market questions the Fed’s rate cut outlook and the Indonesian real sector lacks the catalysts to drive the market forward.
  • The new government’s decision to initiate the process of joining BRICS may be driven more by political considerations, as the bloc does not seem to provide significant trade opportunities for Indonesia due to the largely homogeneous export products shared with existing members.
  • Indonesia does not seem to be under the urgency to follow BRICS’ de-dollarisation agenda, given the ample USD liquidity within the financial system relative to other foreign currencies.