Foreign News
Indonesia’s rupiah falls to record low against US dollar
Indonesia’s rupiah has hit its weakest level ever against the US dollar, breaching the psychological 18,000 threshold amid surging energy costs.
The currency hit 18,028 against the greenback on Thursday, despite recent central bank efforts to provide support.
The energy shock driven by the US-Israel war on Iran has placed a significant strain on energy-importing Southeast Asian economies, particularly Indonesia and the Philippines.
The resulting pressure on trade balances has contributed to capital outflows and weaker currencies.
Gulf hostilities flared again on Wednesday, sending oil prices up more than 1 percent.
Adding to regional uncertainty, the United States has proposed additional import duties of 10 percent or 12.5 percent on goods from 60 economies, including Indonesia, Malaysia and Singapore, over alleged forced labour failures.
Permata Bank chief economist Josua Pardede said that an exchange rate of 18,000 was a “psychological threshold” for market investors.
The weakening, he told the AFP news agency, was fuelled by high dollar demand caused by the spike in oil prices and a narrowing trade surplus.
Indonesia is a net oil importer and is particularly affected by the rising crude costs, though the government insists it will leave subsidised fuel prices unchanged.
The country’s trade surplus has been hammered, narrowing to just $89m in April, from $3.3bn a month before, further reducing dollar supply in the Indonesian market, Josua said.
“Dollar supply from goods trade is dwindling, while dollar needs for energy imports, raw materials, dividends, foreign debt payments and seasonality needs remain significant,” he said.
“This is why the increase in the BI [Bank Indonesia] lending rate and intervention is not enough to reverse the rupiah’s [depreciation].”
The central bank hiked rates by 0.5 basis points to 5.25 percent last month – the first increase in two years – as it looked to stabilise the rupiah and keep inflation in check.
The central bank’s spokesman, Ramdan Denny Prakoso, said on Wednesday that it continued to use “all available policy instruments” to “maintain adequate foreign exchange liquidity”.
Bank Indonesia also tightened rules for dollar purchases.
Since May, buyers of more than $25,000 in a given month have been required to provide supporting documents to justify their need for US currency.
[Aljazeera]
Foreign News
Eight killed, at least 34 missing after landslide in China’s Chongqing
Rescuers are rushing to locate dozens of people missing in the southwestern Chinese city of Chongqing, after a deadly landslide buried homes in the area, according to Chinese authorities.
The landslide took place around 9:10am (01:10 GMT) on Friday in Chongqing’s Pengshui county, killing eight people, leaving 34 unaccounted for and displacing more than 1,100, reported state media.
Footage shared by China’s CCTV broadcaster showed a huge buildup of rocks and dirt covering part of a residential and commercial street at the bottom of a mountain in the region.
Ten people have been rescued from the debris, including two who are seriously injured, reported China’s state-run Xinhua news agency.
Water, electricity and gas supplies were cut off within a one-kilometre (0.6-mile) radius of the landslide to prevent further disruptions. More than 800 rescuers have gone to the site, reported CCTV.

Authorities said they sent more than 8,000 disaster relief items to Chongqing, including tents, folding beds and family emergency kits.
Pengshui county is located in the southeast part of Chongqing, bordering the provinces of Hubei and Guizhou.
The area where the landslide happened is known for “unpredictable” steep terrain, a local official told a news conference, adding that dangerous rocks remain along the sides of the cliff.
The government has allocated 50 million yuan ($7.36m) in natural disaster relief funds to support the rescue and relief operations and to provide assistance to affected residents, the Ministry of Finance and the Ministry of Emergency Management said.
[Aljazeera]
Foreign News
Venezuela earthquake: Number of known dead rises to nearly 5,000 victims
Almost 5,000 people are known to have died in two earthquakes that devastated Venezuela in June, but the United Nations estimates that as many as 50,000 people may still be missing – with many feared buried under rubble.
The number of confirmed deaths is now higher at 4,930, lawmaker Jorge Rodriguez announced on Thursday
The disaster almost a month ago impacted tens of thousands of others. Nearly 17,000 people are wounded, and 21,120 are living in shelters.
Venezuelan teams have been operating since the earthquake struck, but locals say their response has been slow.
“From the very first moment, from when the earthquake happened, there was an immediate response, but from civilians. Civilians and independent people. The state’s response is only being seen now,” Cinthia Pulido, a Venezuelan displaced by the earthquakes, told Al Jazeera. “We’re watching and waiting for some kind of answer.”
International rescue teams sent in the immediate aftermath of the disaster have left as the focus moves to providing humanitarian relief.
“The little I can get is just for me to survive, support my children, and help my mum,” Louismarez Paez, who has also been displaced, told Al Jazeera.
Her mother, she said, does not receive any assistance other than that which she herself provides.
Venezuela has ‘crucial resources’ it cannot access
Venezuela has faced tight US sanctions since 2015, which experts say is making the government’s job even harder.
“Venezuela has crucial resources that it is not being allowed to access,” Mark Weisbrot, senior economist and co-director at the Center for Economic and Policy Research, said.
That includes $11bn blocked by the US and European countries that Venezuela “should legally have”, Weisbrot said.
Earlier this week, a group of 14 Democratic lawmakers in the US sent a letter urging the White House to ease economic sanctions on Venezuela to aid recovery efforts, according to a report from Spanish newspaper El Pais.
The sanctions, they wrote, are “severely hampering urgent relief efforts” and have “severely undermined the country’s response and reconstruction efforts”.
The UN estimates that the recovery efforts in Venezuela could cost the country $37bn.
[Aljazeera]
Foreign News
Argentina face fine for Falklands banner in semi-final win
Argentina face the prospect of a Fifa fine after their players celebrated the World Cup semi-final win against England with a banner in support of their country’s claims to the Falkland Islands.
The defending world champions produced a dramatic late comeback in Atlanta, scoring twice to defeat Thomas Tuchel’s side 2-1 and book a showdown with Spain in Sunday’s final.
After the final whistle, Argentina players celebrated while holding a banner reading “Las Malvinas son Argentinas”, which translates as “The Falklands are Argentine”.
The Falkland Islands, a British overseas territory in the south-west Atlantic Ocean, remain the subject of a sovereignty dispute between Britain and Argentina.
The two nations went to war over the group of islands, situated 300 miles off Argentina’s east coast, from April to June 1982.
The 74-day conflict led to the deaths of 655 Argentine and 255 British servicemen. Three people from the islands also died.
In 2014, Fifa fined the Argentine Football Association 20,000 pounds after its players held up a banner with the same message before a friendly against Slovenia.
World football’s governing body said the gesture had breached rules on political action and team misconduct.
[BBC]
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