Lupa Kata Sandi? Klik di Sini

atau Masuk melalui

Belum Memiliki Akun Daftar di Sini


atau Daftar melalui

Sudah Memiliki Akun Masuk di Sini

Konfirmasi Email

Kami telah mengirimkan link aktivasi melalui email ke rudihamdani@gmail.com.

Klik link aktivasi dan dapatkan akses membaca 2 artikel gratis non Laput di koran dan Majalah Tempo

Jika Anda tidak menerima email,
Kirimkan Lagi Sekarang

Finance Minister Not Concerned over Rupiah Depreciation

25 August 2015 06:58 WIB

Ilustrasi kurs rupiah dan mata uang Indonesia. Getty Images

TEMPO.CO, JakartaFinance Minister Bambang P.S. Brodjonegoro expressed that he was not yet worried about the current depreciation of the country`s rupiah currency.

Brodjonegoro is of the view that the main cause of the depreciation was not the countrys economic fundamentals, but global economic pressures that have led financial market players to become irrational.

"The present condition is not rational in the sense that it does not reflect the economic fundamentals, but it has happened due to the negative market sentiment," he pointed out.

He noted that the rupiah depreciation also has the potential to trigger a currency war following the devaluation of the Chinese yuan and Vietnamese dong.

"It is difficult for the rupiah to appreciate as other currencies are also depreciating," he remarked.

The minister admitted that the rupiah had been undervalued, but the situation is still under control as the government and Bank Indonesia have continued to work to maintain the currency to ensure that it does not fluctuate too much against the US dollar.

"If we just look at the fundamental conditions, it is indeed already undervalued to a significant extent, and so, it must be strengthened," he stated.

Bambang remarked that under the current global pressure, which continues to increase, the rupiah value indeed must not be allowed to strengthen significantly as otherwise; it would be contradictory to the real condition.

"If the rupiah is strengthened and appreciates against all currencies, our competitiveness would be affected," he stated.

The finance minister pointed out that market traders are currently worried about the Chinese action, the drop in the global crude price, and the Feds plan to adjust its interest rate, which is anticipated in September.

The external pressures have indirectly weakened the rupiah exchange rate against the US dollar and the performance of the countrys stock exchange index.

"The combination will eventually affect all sectors. When the share prices fall in the United States, all stock exchanges will be affected. It is irrational for the world to consider that there is no way out to immediately restore the economic condition," he noted.

Minister Bambang stated that various efforts had been taken to anticipate capital outflows from the Indonesian share market due to external pressures, including optimizing the auction of state securities.

The Jakarta Stock Exchange index declined 172.22 points, or 3.97 percent, to end the day at 4,163.72 as compared to Fridays close of 4,335.95.

Meanwhile, during interbank transactions, the rupiah was traded down 47 points to Rp13,988 compared to its previous position at Rp13,941 per US dollar.

Bank Indonesia, the central bank, has decided to implement three strategies in order to maintain the stability in the rupiah exchange rate in the short term in the midst of the current global economic conditions and uncertainties.

"To maintain the stability of the rupiah, we have optimized monetary operations in the rupiah and foreign currency money markets," Juda Agung, the head of the central banks Monetary and Economic Police Department, stated.

The three strategies are strengthening the management of the rupiahs liquidity in the money market, the management of foreign currency demand and supply, and the availability of foreign currency reserves.

In terms of operations, the three strategies are being implemented through seven policies.

The policies cover intervention in the foreign currency market, the purchase of state securities in the secondary market, changing the mechanism of Bank Indonesia Deposit Certificate (SDBI) auction, issuing six-month SDBI and re-issuing nine-month and 12-month Bank Indonesia Certificates (SBIs), and adjusting the frequency of foreign exchange swap auctions from twice a week to once a week.

The other policies are lowering the limit of foreign currency purchase using underlying documents as proof from US$100 thousand to US$25 thousand per customer per month and obligating the use of tax-file number (NPWP) and coordination between the government and other central banks to strengthen foreign currency reserves.

The Indonesia Stock Exchange (BEI) admitted that it is coordinating with the Finance Service Authorities (OJK) in connection with the drop of the share price index in the past few days.

"The BEI is coordinating with the OJK with regard to the drop of the IHSG index and to discuss measures needed in line with the existing regulations," BEI Director Samsul Hidayat stated.

He stated that so far, the BEI continued to monitor the movement of the domestic share market through a crisis management protocol, among others.

"The BEI has indicators and stages that could be used when the market is fluctuating," he said.

Hidayat remarked that stimulus regulation in the capital market, produced by the OJK that allows issuers and public companies to conduct buybacks, is expected to be able to prevent a further drop in the index.

The OJK has produced a Circular Number 22.SEOJK,04/2015 to allow issuers or public companies to buy back their shares without having to seek an agreement in a shareholders meeting.

"The circular is issued to provide a stimulus and reduce the significant impact of market fluctuations due to external influence and pressures on the market," Nurhaida, the executive head of OJK`s capital market supervision, noted.

She noted that issuers or public companies that implement the OJKs circular still have a provision to meet wherein the total buyback must not exceed 20 percent of the paid-up capital, including treasure stocks, and minimal shares in circulation must be 7.5 percent of the paid-up capital.

ANTARA




Rupiah Expected to Strengthen to 15,630-15,680 per US$ Today

6 hari lalu

Rupiah Expected to Strengthen to 15,630-15,680 per US$ Today

The rupiah exchange rate against the US dollar will fluctuate today.


Rupiah Exchange Rate Strengthens in December

21 Desember 2023

Rupiah Exchange Rate Strengthens in December

Bank Indonesia Governor Perry Warjoyo reported that the Rupiah exchange rate over the US Dollar continues to show an upward trend.


Aviation Industry 'Hit Hard' by Rupiah Depreciation, Expert Says

27 Oktober 2023

Aviation Industry 'Hit Hard' by Rupiah Depreciation, Expert Says

The aviation industry in Indonesia is affected by the Rupiah depreciation.


Jokowi Downplays Rupiah Depreciation: 'It's Still Safe'

25 Oktober 2023

Jokowi Downplays Rupiah Depreciation: 'It's Still Safe'

President Jokowi stated that the recent depreciation of rupiah exchange rate against US dollar did not disrupt the domestic real and financial sector.


Pertamina Responds to Falling Price of Global Oil

26 Januari 2023

Pertamina Responds to Falling Price of Global Oil

State oil and gas firm Pertamina Patra Niaga responded to the price of global crude oil which continued to show a downward trend.


Rupiah Exchange Rate Surges Over Expected Trade Balance Surplus

16 Januari 2023

Rupiah Exchange Rate Surges Over Expected Trade Balance Surplus

The Rupiah exchange rate transacted between banks in Jakarta surged on Monday morning which is in line with market expectations.


Rupiah Exchange Rate Dips; Analyst Suspects Dollar Shortage as Main Driver

6 Januari 2023

Rupiah Exchange Rate Dips; Analyst Suspects Dollar Shortage as Main Driver

The rupiah exchange rate transacted between banks in Jakarta on Friday noon weakened to Rp15,638 per US dollar.


Asian Currencies, Rupiah Exchange Rate Weakens in Early Trade

21 November 2022

Asian Currencies, Rupiah Exchange Rate Weakens in Early Trade

The rupiah exchange rate against the United States (US) dollar, along with other Asian currencies, opened lower in early trading on Monday.


Bank Indonesia Governor: We Don't Need to Raise Interest Rate Yet

18 Agustus 2022

Bank Indonesia Governor: We Don't Need to Raise Interest Rate Yet

Bank Indonesia (BI) Governor Perry Warjiyo said raising the interest rate is not necessary at the present.


Rupiah Exchange Rate Predicted to Fluctuate

18 Agustus 2022

Rupiah Exchange Rate Predicted to Fluctuate

The rupiah exchange rate risks being pressured by the US dollar on Thursday trading following the issuance of the Fed minutes.