IDR: Rupiah Firmer and On Track for a Positive Week.       

• USD/IDR opens lower at 16,203 from last nights close of 16,280.
• The rupiah is on track to finish the week +1.00% better.
• The rupiah has breached the 20-day EMA of 16,233.08 with this morning’s move and the next key technical level is the 50-day EMA of 16,079.81.
• Bloomberg Asia dollar spot index is up by +0.30% and the Bloomberg Dollar spot index is down -0.20%.
• USD/IDR one-month implied volatility is down this morning to 6.335%, versus 6.365% for yesterday’s close.
• Indonesia's 10-year bond yield is at 7.058%.
• Indonesia 5 yr USD CDS at 73bps (Tuesday’s close 73bp, 5-year low 58bps in 2020).

Headlines

• Indonesia is adjusting its budget to reduce state spending by about 8.5% this year, signalling the government is grappling with a tight fiscal space to fund projects after scaling back a tax hike plan due to a public backlash.  (source: BBG).
• Prabowo to meet Modi to discuss security, economic cooperation (source: Jakarta Post).
• To promote business collaboration and bilateral cooperation between the Hong Kong Special Administrative Region (HKSAR) and Indonesia, Mr Paul Chan, Financial Secretary of the HKSAR, visited Indonesia from January 8 – 10.  Jakarta Post had an exclusive interview with him. (source: Jakarta Post).