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Johanes

JLS JPYIDR Long/Buy Med Term Exch Rate Target Zone 125.25-144.25

Long
JAPANESE YEN / INDONESIAN RUPIAH (FX_IDC:JPYIDR)  
Johanes Updated   
FX_IDC:JPYIDR   JAPANESE YEN / INDONESIAN RUPIAH
Trend Analysis Beyond Technical Analysis
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trendanalysis beyondta
Historical performance and previously managed was 20 % and the estimated medium term target zone is based on monetarists' consensus, not by historical performance, and it is expected for BI to re-establish new target zone with BOJ to stabilize IDR in the market in long run.
Comment:
The previous exchange rate target zone managed by the BOJ and the BI was very risky to Indonesian economy due to the very high JPY-denominated debts by the Indonesian government and the private sector borrowers. Unless the borrowers' cash flow not in JPY-denominated cash flow, then the risk of depreciation rate on the IDR by the JPY ultimately to hammer the borrowers' financial performance.
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