- The still-going US government shutdown and renewed US-China trade war tension bring volatility back to the global economy. However, the Rupiah remains stable as foreign inflows are returning.
- The rally in the stock market precedes foreign inflows to the market, highlighting that the rally is almost exclusively driven by households and other domestic investors.
- Households’ preference for equities over productive assets may weaken the multiplier effect from the government’s liquidity interventions.
