Indonesian Rupiah was one of the least performing currency in Asia in November which has gone some way to correct the overbought conditions in October when it rose 7.2%.
Bank Indonesia eased its monetary policy by delivering an RRR cut in November. The central bank left benchmark rate at 7.5% in December. Sentiment among business stay comparatively weak and the momentum of fiscal spending will be crucial for growth pace.
While the growth in investment was a pullback on GDP, it seems that the spending rose in second half of 2015. The government now expects less than 92 % of target by 2015 end with tax revenue at 85%.
"BI will retain an easing bias through 2016, but consensus already expects two 25bps rate cuts by end-2016", says RBC Capital Markets in a research note.


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