Rupiah Slides Again to Rp12,184 on Tuesday Evening

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  • TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta on Tuesday evening slid by six points to trade at Rp12,184 per United States (US) dollar, down from its previous position at Rp12,178 per US dollar. 

    A market analyst from Bank Himpunan Saudara, Rully Nova, explained that the US dollar's value was plateauing as investors fret about the pessimistic global economic growth outlook for 2015, as well as the uncertainties surrounding the Fed's plans to raise its interest rates. 

    "These external sentiments have helped the rupiah from losing too much of its value ," said Rully. 

    Internally, market players are awaiting the names of president-elect Joko Widodo's ministers as well as his short-term policies. 

    According to Rully, market players are hoping that the next administration can decisively act and raise the price of subsidized fuel, which will help reduce fiscal strains on the 2015 Budget (APBN). 

    "A larger fiscal breathing room could mean more infrastructure and development projects in the future, the lack of which is preventing Indonesia from growing at a faster pace. That said, Indonesia's economic fundamentals are quite well and stable," said Rully. 

    Rully hopes that the next administration will fund more infrastructure projects in Indonesia that will add to Indonesia's appeal as an investment destination for foreign investors, which is hoped to benefit the investment services sector as well. 

    Meanwhile, Bank Indonesia's middle rate on Tuesday stood at Rp12,195 per US dollar, slightly up from its previous position at Rp12,202 per US dollar.