(Bloomberg) — The Indonesian rupiah has languished at the bottom of Asian currency rankings for most of the year but a recent overhaul of the nation’s investment law may help revive its fortunes.
The rupiah rose about 1% against the dollar last week after Indonesia approved its first omnibus law aimed at cutting red tape to boost investments and create jobs. That’s after a loss of 4.1% in the quarter ended September amid concern over Bank Indonesia’s independence, debt monetization and an economy poised for its first annual contraction since 1998.
“The passing of the omnibus labor law is good news for the rupiah as it’s a long-term structural reform that will improve the growth prospects of the economy,” said David Forrester, FX strategist at Credit Agricole CIB in Hong Kong. “We forecast USD/IDR to reach 14,500 by year end.”
Citizens for Ethics and Responsibility in Washington, a nonpartisan watchdog group, filed a formal complaint that Perdue’s remarks were a clear violation of the Hatch Act. The special counsel’s office on Thursday concluded that Perdue had indeed crossed the line and ordered him to reimburse the government for travel expenses and other costs of his involvement in the North Carolina event.
“Taken as a whole, Secretary Perdue’s comments during the August 24 event encouraged those present, and those watching remotely, to vote for President Trump’s reelection,” the office wrote. “His first words were not about USDA, but about the president’s 2016 and 2020 campaigns.”
“Provided that immediate corrective action is taken and the U.S. Treasury is reimbursed for such costs, OSC will decline to pursue disciplinary action and instead consider this file closed with the issuance of the cure letter,” it added.
The special counsel’s office also noted that, when