Repercussions from rupiah stability

The structured products market in Indonesia is facing a challenging operating environment following the introduction of new rules by Bank Indonesia aimed at maintaining the stability of the rupiah. By Jacqueline Low

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Indonesia's central bank, Bank Indonesia (BI), started issuing a flurry of regulations in the last two months of 2008, motivated by a single over-arching objective: to establish and maintain rupiah stability. This objective incorporates two key aspects. The first is a stable rupiah for goods and services, reflected by the inflation rate. The second is exchange rate stability against other foreign currencies, which is reflected by rupiah performance against other foreign currencies.

On November

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