Indonesia's Policies On Key Commodity Export Goods Continue To Draw Attention

Spot USD/IDR has recouped its initial losses and last trades +3 figs at IDR14,320, with the closely watched U.S. CPI already in the books. Bulls set their sights on Jan 6/Dec 21 highs of IDR14,399/14,400 and a breach of these levels would open up Dec 6 high of IDR14,447. On the flip side, bears look for a fall through Jan 11 low of IDR14,285 towards the 100-DMA at IDR14,268.

• USD/IDR 1-month NDF last +14 figs at IDR14,344. The initial topside focus falls on Jan 6 high of IDR14,470, while bears keep an eye on IDR14,303/14,302, which limited losses over the last three days.
• Investment Min Luhut said that Indonesia hasn't lifted a general ban on coal exports but is allowing the resumption of a limited number of shipments by miners who have complied with the 25% domestic supply obligation.
• Elsewhere, the government is considering imposing a progressive export tax on some nickel products as part of Pres Widodo's push to move the country up the global value chain. Indonesia is the world's largest nickel producer.
• We are still awaiting the December reading of the consumer confidence gauge from Danareksa Research Institute. It may hit the wires as soon as today.