Policy rate in Indonesia to remain the same for the remainder of 2015: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-In a global environment of competitive currency depreciation, Indonesia cannot stay isolated. However, the benefits of further rate cuts would be limited. While they could boost domestic consumption somewhat, a depreciated currency would be unlikely to improve Indonesia's cost competitiveness and is unlikely to push exports higher given that these are to a large degree,commodity-based.

-The central bank cutting rates further would result only in increasing depreciation pressure on the currency The CAD is likely to remain a key source of vulnerability as the Fed looks to tighten monetary policy around June. Therefore, we believe that the decision to cut rates is a one-off move and is merely a reversal of the hike implemented in November.

-We expect the policy rate to remain the same for the remainder of 2015. However, we do not totally rule out the prospect of another rate cut, though that may prove to be costly for the economy