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  • USD/IDR hits daily highs on devastating Indonesia’s Q2 GDP.
  • Coronavirus pandemic’s impact on the economy continues to worsen.

According to the latest release from Statistics Indonesia, the Indonesian economy contracted 4.19% QoQ in Q2 2020 versus -3.49% forecast and -2.41% prior.

On an annualized basis, Indonesia’s GDP rate arrived at -5.32% compared to -4.61% expected and 2.97% seen in the first quarter (Q1) 2020.

About Indonesia’s GDP

The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).

FX implications

USD/IDR jumped to daily lows of 15,585 following the release of the below-forecast Indonesian GDP data.

 The cross ignored broad-based US dollar weakness.