FESTIVE sentiments engulfed Indonesia's financial markets during the Lebaran holidays. As of last month, investor anticipation for the upcoming tax amnesty has attracted sizable fund inflow into the market.

This capital inflow boosted Indonesia's foreign reserves up to US$109.8 billion as of end of June, from US$103.6 billion the previous month. The Jakarta Composite Index rose by 3.41 percent from June 14 to July 14. Not surprisingly, the rupiah