President Susilo Bambang Yudhoyono made progress on his bid to appoint Indonesia Finance Minister Agus Martowardojo the next central bank chief as a parliamentary panel agreed to put the candidate through a fit-and-proper test.
Indonesian lawmakers yesterday approved Finance Minister Agus Martowardojo to become the next central bank governor after he said his priorities would be a stable exchange rate and keeping inflation low.
Indonesian foreign-exchange reserves will probably plunge the most since at least the Asian financial crisis this quarter, putting pressure on President Susilo Bambang Yudhoyono to cut fuel subsidies and curb imports.
Indonesia’s plan for guidelines on acquiring land for infrastructure projects and a boost to the nation’s credit rating augur improved prospects for investment in the world’s fourth-most populous country.
Indonesia’s inflation rate climbed for a third month in June as the end of the harvest season crimped food supplies, an increase that may not be sufficient to trigger an interest-rate increase next week.
The Bank of Korea may refrain from cutting rates at its first meeting since President Park Geun Hye’s election even as Asia’s best-performing currency of the past year threatens exports and a weakening yen aids Japan.