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

TEMPO.CO, Jakarta - Indonesian President Joko Widodo or Jokowi stated that the recent depreciation of the rupiah exchange rate against the US dollar did not disrupt the domestic real and financial sectors. He believed that the country should be grateful because economic growth was still above five percent amid the global economic slowdown due to the strengthening of the US dollar.

“Looking at the percentage of the depreciation of our currency, it's still safe for the real sector, the financial sector, and inflation,” he said in his opening speech at the 2023 Investor's Daily Summit in Jakarta, on Tuesday, Oct. 24.

This morning, Oct. 25, the rupiah’s interbank currency rate reached almost Rp16,000 per US dollar, trading lower by 0.13 percent or 21 points to Rp15,870 per US dollar from the previous Rp15,849 per US dollar.

The President said he had received the latest report on the development of the economic situation from the Financial System Stability Committee (KSSK). The KSSK consists of Finance Minister Sri Mulyani, Bank Indonesia Governor Perry Warjiyo, the Financial Services Authority (OJK) Chairman Mahendra Siregar, and the Chairman of the Deposit Insurance Agency (LPS) Purbaya Yudhi Sadewa.

The report stated that the rupiah is still under control in the real and financial sectors. Moreover, bank credit growth is also still at the level of 8.69 percent. According to the President, the figure was still quite good.

Nevertheless, Jokowi highlighted the global economic challenges that have been complicated by the long-term high-interest rate policy in the US. He said this caused many investors to withdraw their foreign capital to the US, resulting in the strengthening of the US dollar index worldwide.

“Particularly developing countries. All capital outflows are flowing back to the US. This makes things even more complicated for all of us,” said Jokowi.

RIZKI DEWI AYU | ANTARA

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