Rupiah Impervious to Inauguration, Analyst Projects

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  • TEMPO.CO, Jakarta - The inauguration of president-elect Joko Widodo is not expected to affect the rupiah much. Monex Investindo Futures analyst Yohanes Ginting said that even if the rupiah experienced a gain, it will be a limited one.

    "The rupiah gain was already represented in last week's trade when Jokowi met with Prabowo," he said yesterday.

    According to Yohanes, the market is not looking forward to the swearing-in ceremony. Investors are more on the look out for the cabinet composition, waiting to see who will hold key positions for Indonesia's economy, such as the minister for economic affairs, finance minister, and energy and infrastructure minister.

    The market is also still concerning over Jokowi's administration's effectiveness in the parliament, since the House is dominated by Prabowo's camp.  

    Today, Yohanes predicted the rupiah to move in the range of 12,100 to 12,200 per US dollar. The market will also be waiting for the release of China's GDP data released on Monday night local time. If China's economy grows higher than expected, the rupiah is likely to strengthen to around 12,000 per US dollar, but not any lower.