TEMPO.CO, Jakarta - Political concerns have contributed to the weakening of Indonesia's rupiah against the US dollar, according to Gadjah Mada University economist Tony Prasetiantono, as reported by Antara News.
The currency was traded at Rp12,223 per US dollar through interbank transactions in Jakarta on Friday afternoon, having weakened by 37 points from its earlier Rp12,186.
Tony Prasetiantono said that he believed the country's political situation had a contribution to the weakening of the rupiah against the greenback.
"Market players still consider Indonesias political situations negative sentiments, despite our relatively good economic fundamentals," he said.
Indonesia's economic fundamentals remained "good" with an inflation rate of about 4.53 percent, total reserves of 112 billion US dollars and expected economic growth of 5.2 percent, he said.
The global sentiments, such as the US Federal Reserve's policies, did not contribute to the weakening of the rupiah.
The rupiah was expected to feel a positive impact after the new government was sworn in, similar to Indias experience when it elected its new prime minister, he explained.