Rupiah and IHSG Strengthen, Dasco Says Confidence in Government Is Growing

Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, considers the positive trend of the rupiah’s strengthening against the US dollar, along with the recent rise in the Jakarta Composite Index (IHSG), to be a reflection of increasing market and public confidence in the government. The Gerindra Party politician believes the cabinet’s performance in various strategic sectors is the main stimulus providing positive sentiment for domestic macroeconomic stability. “I think confidence in the government is also getting stronger, so that affects the market and also the strengthening of the rupiah exchange rate. The government’s work will continue to be carried out consistently,” Dasco said at the Parliament Complex in Senayan, Central Jakarta, on Thursday. Dasco revealed the rupiah’s strengthening trend is projected to continue in the near future. Based on information he obtained from the executive branch, the government, together with monetary authorities, has prepared a number of new tactical measures. Without detailing the technical specifics of the intended policies, he is optimistic that the economic formula to be executed this week will be able to strengthen the rupiah. “I have received information from the government that this week and in the future there are specific strategies that will be implemented. I have heard (the plans) and I believe they will make the rupiah exchange rate strengthen even more,” he explained. Furthermore, Dasco urged market players and members of the public who are currently holding or saving foreign currency for short-term speculative gain to act. The public is advised to immediately release their US dollar holdings into the domestic market before the government’s new strategy intervention fully takes effect next week. This step is also considered able to help increase the foreign currency supply within the country. “Perhaps for colleagues who are currently holding dollars hoping for an excess (profit), it is best to release the dollars now. Because if next week the rupiah has strengthened sharply, it would be a pity for those still holding dollars,” Dasco concluded. It is noted that the rupiah showed positive performance in trading on Thursday. Based on market data, the rupiah strengthened slightly by 3 points, or 0.02%, to the level of Rp17,941 per US dollar, compared to the previous closing position of Rp17,944 per US dollar. The Jakarta Composite Index (IHSG) also experienced another increase this morning, opening at the position of 5,899.265.