Bank Indonesia Governor Optimistic Rupiah Will Stabilise

Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo is optimistic that the rupiah exchange rate against the US dollar will stabilise. “Confident it will stabilise,” said Perry after attending a limited meeting with President Prabowo Subianto at the Presidential Palace Complex, Jakarta, on Monday. However, Perry could not specify exactly when the rupiah would begin to move towards stability.

On the same occasion, Finance Minister Purbaya Yudhi Sadewa reported to President Prabowo that Indonesia’s economic condition remains strong, noting that the State Budget (APBN) is sufficiently secure to support priority programmes. Furthermore, he stated that Indonesia’s fiscal foundation is in good shape. The Ministry of Finance intends to increase communication and engagement with the capital markets and investors.

“The economic condition is good, the budget is good with no issues, and the economic foundation is truly solid. We will simply focus more on socialising this to the market and to investors,” said Purbaya.

Additionally, Purbaya mentioned that the government has entered the bond market to maintain the stability of the rupiah exchange rate. Gradually, the government will increase investment value in debt securities. This move is intended to encourage the return of foreign capital inflows to Indonesia, which is expected to strengthen the rupiah’s position. Purbaya also noted that the fiscal strategy, based on President Prabowo’s directives, will be announced in the near future.

The rupiah exchange rate closed weaker at Rp17,668 per US dollar from the previous Rp17,597 per US dollar. The Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened to the level of Rp17,666 per US dollar from the previous Rp17,496 per US dollar.