IDR: CAPITAL IS OUT-FLOWING FROM INDONESIA TO HAMMER THE ECONOMY

The medium and long terms exchange rate target zones on IDR with USD, EUR, CHF, JPY are confirmed the continuous capital out flowing from Indonesia in medium to long terms by weakening IDR in medium to long terms. The alignment, realignment and continuously realignment strongly confirmed the long term weakening of IDR. Monthly to short terms however will drive the IDR to be strong before resumed to be weakened in medium and long terms.

The long term GDP band of Indonesia also confirmed the downward long term directional movement on GDP as well as inflation band. The continuously weakening of IDR in the market will continue to drive the weakening of the Indonesia economy and driven by the shortage of liquidity. Liquidity dry up could be potentially less anticipated and may bring Indonesia to the next Venezuela.

The capital out-flowing will hammer all Indonesian economic indicators beyond the economists' expectation and away from government's optimistic projection.