Chief researcher of NH Korindo Securities Indonesia Reza Priyambada said the new tax amnesty law still brought about positive sentiment to the domestic financial market triggering rupiah appreciation against the dollar.
"The policy opens an opportunity for repatriation into the country by rich Indonesian stashing their funds in foreign banks. The result would help sustain the countrys economic growth," Reza said.
He said the market players are awaiting implementation of the tax amnesty law as a new stimulus for the economy that the rupiah strengthening trend would continue.
He said positive sentiment also came from abroad with the majority global currencies gaining against the dollar.
"This condition is a good momentum for rupiah stability," he said, adding euro has also shown improvement.
Analyst from PT Platon Niaga Berjangka, Lukman Leong, said the speculation of the market players after the tax amnesty policy was positive that in mid term rupiah would gain more strength.
In addition , fear of high inflation during the Islamic fastinbg month and Idul Fitri had dissipated .
The Central Bureau of Statistics reported that inflation in June was only 0.66 percent month to month and inflation in the first six months of the year was 1.06 percent and year-on-year, the inflation was 3.45 percent.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
