Indonesia To Lower Taxes On Bond Interest, Jakarta Expands Vaccination Coverage

Spot USD/IDR has held yesterday's range and last trades +8 at IDR14,613, off its earlier session high of IDR14,634.

• Jakarta extended its Covid-19 vaccination programme to the general public, with people accompanying two patients over 60 now also entitled to receive a jab. The policy was designed to accelerate the vaccination drive.
• Indonesia is trying to lure investors into its gov't debt by lowering taxes in interest earned from holding bonds to a record low. Starting from Aug, most domestic and foreign investors will be subject to a 10% income tax.
• From a technical perspective, bears look for a fall through Apr 7 low of IDR14,470, toward the 200-DMA at IDR14,470. Worth noting that the RSI remains in overbought territory. Conversely, a rally above Oct 23 high of IDR14,708 would draw attention to Oct 6 high of IDR14,753.
• BI will hold a briefing on payment system during Ramadan & before Eid holidays.
• Indonesian trade balance comes out tomorrow. Focus then turns to next week's monetary policy decision from Bank Indonesia.