Politics, fluid rupiah slowing Indonesian commodity trade<\/p>\n
SINGAPORE (Dow Jones): The volatility in the Indonesian
\nrupiah, stemming from a leadership crisis in the country, has
\nslowed commodities trading across the country.<\/p>\n
Market participants are watching developments in Jakarta as
\nthese events will likely affect the rupiah, which in turn could
\ninfluence commodities prices, traders said.<\/p>\n
"Trading has been relatively quiet since this morning. People
\nare taking a wait-and-see position, watching to see the result
\ntoday," said a Jakarta-based palm oil trader.<\/p>\n
Indonesia's House of Representatives is still meeting
\nWednesday. In the latest development, a vote ordering the
\nimpeachment of President Abdurrahman Wahid looked certain to be
\npassed by Indonesia's Parliament Wednesday after its two largest
\nparties, representing a majority of lawmakers, formally backed
\nthe move in a debate.<\/p>\n
The rupiah started to rebound Tuesday after news that Vice
\nPresident Megawati Sukarnoputri's party will back the
\nParliamentary session Wednesday to call for impeachment of Wahid.<\/p>\n
At 0830 GMT (3.30 p.m. Jakarta time) Wednesday, the dollar was
\ntrading at Rp 11,250, compared with Tuesday's intra-day high at
\nRp 11,635.<\/p>\n
Cocoa farmers in the Indonesian province of South Sulawesi
\nhave been holding back beans in the last couple of days because
\nof the volatile rupiah along with lower values in New York cocoa
\nfutures, said a Singapore-based trader.<\/p>\n
The sudden rebound in the rupiah also has limited trading in
\nits domestic coffee market as exporters find coffee too expensive
\nto buy at the moment, traders said.<\/p>\n
A strong rupiah means exporters would have to pay more rupiah
\nfor every metric ton of coffee they buy.<\/p>\n
Indonesia grade four robusta coffee, basis free-on-board
\nLampung, was quoted around Rp 4,400 per kilogram, compared with
\nRp 4,200-Rp 4,300\/kg last week.<\/p>\n
Offers were few in the Indonesian rubber market, with sellers
\nsidelined awaiting news of the impeachment outcome, traders said.<\/p>\n
Offers for standard Indonesian rubber 20 grade were nominally
\nassessed at 50.20-50.70 cents a kilogram, free-on-board basis for
\nJuly shipment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/politics-fluid-rupiah-slowing-indonesian-commodity-trade-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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