Rupiah Volatility Indicator Still Below Target, Bank Indonesia Chief Says amid Alarming Depreciation

TEMPO.CO, Jakarta - In a working meeting with the DPR's Commission XI on Monday, June 24, Bank Indonesia Governor Perry Warjiyo said that the rupiah exchange rate volatility indicator was still observed below the target of 5.5 percent year-to-date (ytd). This is the result of various monetary intervention efforts, the issuance of Bank Indonesia Rupiah Securities (SRBI), and an increase in the BI rate.

His statement comes amid industries' concerns over the plummeting exchange rate, with Indonesian Employers' Association (Apindo) chairwoman Shinta Kamdani calling it one of the most affected countries compared to the ASEAN-5 countries.  (insert link yang sebelomnya barusan)

"Also in terms of the adequacy of foreign exchange reserves, the realization was 6.2 months of imports, higher than the target of 5 months of imports, and we believe this is still more than enough to stabilize the rupiah exchange rate," Perry said at the Parliament Complex on Monday, as quoted by Antara.

On the same day, Vice President Ma'ruf Amin also expressed optimism that the rupiah exchange rate would strengthen against the US dollar with continued intervention efforts by the government and central bank.

Nevertheless, the government will continue to exert pressure to strengthen the rupiah exchange rate. "Earlier, we also had a meeting within our APBN to evaluate things, even though we are still quite good, our economy is quite good," he said on Monday after attending the 91st National Broadcasting Day commemoration event and the opening of the National Coordinating Commission of Indonesian Broadcasting (KPI) 2024 in Tangerang.

Ilona Estherina

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