Minister Darmin: Rupiah Exchange Rate Has Room to Improve

TEMPO.CO, Jakarta - Coordinating Minister of Economic Affairs Darmin Nasution is optimistic that there is still room for rupiah to strengthen in the days to come, even though he believes that the fundamental value of rupiah’s exchange rate will remain varied. 

“Different people will have different opinions. Some say (the exchange rate) would be Rp14,100 or Rp14,200. Some also say it will reach Rp13,800. So there is no need to ask about it,” said Darmin after giving a keynote speech in the national seminar entitled the 2019 Indonesia Economic Projection today, Nov. 28.

Previously, President Joko “Jokowi” Widodo reportedly was grateful that rupiah has continued to show improvement, which he claimed reflects that Indonesia is currently in a stable economic condition. 

Rupiah exchange rate had actually shown improvement during the past three weeks after it reached its lowest point in October when it was traded at Rp15,000 per US dollar. It is currently traded around the level of Rp14,400-Rp14,500 per US dollar. 

Furthermore, Minister Darmin Nasution said that the government will not continue to directly intervene in the market to improve rupiah exchange rate. However, he maintained that the government needs to maintain a constant capital flow. 

DIAS PRASONGKO