(Bloomberg) — The Indonesian rupiah has languished at the bottom of Asian currency rankings for most of the year but a recent overhaul of the nation’s investment law may help revive its fortunes.

The rupiah rose about 1% against the dollar last week after Indonesia approved its first omnibus law aimed at cutting red tape to boost investments and create jobs. That’s after a loss of 4.1% in the quarter ended September amid concern over Bank Indonesia’s independence, debt monetization and an economy poised for its first annual contraction since 1998.

“The passing of the omnibus labor law is good news for the rupiah as it’s a long-term structural reform that will improve the growth prospects of the economy,” said David Forrester, FX strategist at Credit Agricole CIB in Hong Kong. “We forecast USD/IDR to reach 14,500 by year end.”

graphical user interface, chart: Rupiah's 200-DMA continues to limit currency's gains

© Bloomberg
Rupiah’s 200-DMA continues to limit currency’s gains

The rupiah, which traded at 14,700 against the dollar on Friday, has fallen 5.7% so far this year as Asia’s worst performer.

Even though the rupiah failed to breach resistance at its 200-day moving average, support near 15,000 has held in the second half of the year aided by a burgeoning trade surplus, and Bank Indonesia’s support. Not only has the central bank intervened in the currency market, it has also left rates unchanged at its last two meetings.

Video: More corporate job cuts are likely without new stimulus measures (CNBC)

More corporate job cuts are likely without new stimulus measures



Rupiah bulls will therefore be focusing on the central bank’s policy decision Tuesday, hoping that it continues to prioritize the currency’s stability over growth by keeping rates at present levels. All of the nine economists in Bloomberg’s survey forecast that BI will continue to be

By Agustinas Beo Da Costa and Fransiska Nangoy

JAKARTA, Sept 30 (Reuters)Italy’s Eni ENI.MI is expected to take over the Indonesian Deepwater Development (IDD) project as operator Chevron CVX.N sells its interest in the gas venture, the chairman of the country’s upstream oil and gas regulator said on Wednesday.

Chevron confirmed in January its plan to sell its 62% interest in IDD project as the company makes global changes to cut costs and streamline operations.

Eni is already a partner in the project, along with China’s Sinopec.

SKK Migas chairman Dwi Soetjipto told lawmakers that discussions were at the “finalisation process”.

“There are many positive aspect to Eni replacing Chevron, such as reducing the size of investment to production facilities and (IDD) can be connected to Eni’s Jangkrik gas field,” he said.

Eni did not immediately respond to a request for comment.

Chevron declined to give details on the negotiations but said in an e-mail “the project will have value for another operator and the Kutei Basin can continue to be developed safely and responsibly,” referring to the area of the project.

The IDD project located in the Makassar Strait, involves the Bangka, which started production in 2016, as well as the Gendalo and Gehem gas fields.

IDD in 2019 had an average daily production of 2,000 barrels of liquids and 33 million cubic feet of natural gas, according to Chevron’s website.

Dwi did not disclose the estimated value of the deal.

SKK Migas last year lowered its peak gas output estimate for the IDD project after Chevron cut investment due to a change in the facility’s design, a regulatory official said.

Peak output was expected to reach about 700-800 million standard cubic feet per day (mmscfd), compared with an initial estimate of more than 1 billion