TEMPO.CO, Jakarta - The rupiah is expected to fall this morning and trade between 14,300 and 14,700 per US dollar. Analysts said that the currency correction would be the result of the ongoing rally-turned-riot since Tuesday night.
"The rupiah is hit by domestic and external pressures," Monex Investindo Futures analyst Ahmad Yudiawan said on Wednesday, May 22.
The Elections Committee on Tuesday announced incumbent Joko "Jokowi" Widodo and his running mate as winners of the presidential elections, with a 55.5-percent lead against contender Prabowo Subiatnto's 44.5 percent; a considerably high gap margin.
However, Prabowo's campaign team rejected the official results. They have since the day of voting claimed victory and accused the opposite party of cheating, saying that they would protest by legal means and through 'people power'.
Garuda Berjangka president director Ibrahim said this sentiment pushed investors away from Indonesia's markets over the fear of market uncertainties. As a result, Indonesia's currency remains corrected.
"The exchange rate is at some Rp14,500 per US dollar now. It can easily hit 15,000 if situations remain non-conducive," he warned.