TEMPO.CO, Jakarta - The rupiah interbank exchange rate was up by 23 points from its previous position to begin trading at Rp12,030 per United States (US) dollar.
"Rupiah rallies despite positive figures posted by the US. As such, it could be said that domestic factors are still propping up the value of the rupiah domestically," said a market analyst for Bank Himpunan Saudara, Rully Nova.
According to him, market players are upbeat that Jokowi's cabinet will be able to breathe some fresh air into the Indonesian economy, which will stabilize Indonesia's economy amid the global economic slowdown.
"Indonesia's economy will continue to grow for the time being, as the new government has promised to commit to developing Indonesia's infrastructure, which will benefit Indonesia's economy in the long run," said Rully.
That said, the rupiah's gains will remain limited as the US economy is proving to be recovering at a more robust rate than expected—as reflected by a decline in its unemployment rate.
Ariston Tjendra, the head of research at Monex Investindo Futures, said the decreasing amount of people claiming unemployment benefits in the US meant the economy was recovering.
"Such conditions will drive investors to seek out US dollar-denominated assets, which will drive up the value of the US dollar," said Ariston.