USD/IDR Establishes Itself Below IDR14,000

Spot USD/IDR crossed below the IDR14,000 mark yesterday, bottoming out at levels not seen since February. The rate has consolidated losses today and last sits +25 pips at IDR13,920, holding a relatively tight range.

• BBG reported that Indonesia's two most valuable startups, Gojek and Tokopedia, are in talks for a $18bn merger. BBG sources said that both sides look to closed the deal in the coming months, as they seek to create a local internet powerhouse which could go public in both the U.S. and Indonesia.
• Straits Times reported that Jakarta has extended its "transition partial lockdown" through Jan 17, which includes limits on social gatherings.
• Indonesia holds its first sovereign bond auction of 2021 today, seeking to raise IDR25tn.
• Bears see yesterday's multi-month low at IDR13,865 as their initial target and a break here would open up Jan 24 low of IDR13,577. Bulls need to retake Dec 23 high/50-DMA at IDR14,232/14,234 to get some reprieve.
• Danareksa Consumer Confidence will be published this week, there is no fixed time of the release.