Although Singapore’s bank DBS’s bid for a majority stake in Bank Danamon, Indonesia’s sixth-largest bank by assets, fell through at the beginning of August, a deepening current account deficit and pressures on the currency will force Indonesia to become much more receptive to foreign direct investment. On July 15, the Indonesian rupiah breached the Rp10,000 to the dollar rate for the first time since September 2009. It has continued on a downward path since, adding to inflationary pressures.
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