TEMPO.CO, Jakarta - Juniman, an economist at PT Bank International Indonesia said that market makers’ anticipation on fuel price hike had stimulated rupiah, adding that now would be the right momentum to increase subsidized fuel prices.
In the financial market transaction on Friday, October 31, 2014, rupiah jumped by 54 points (0.45 percent to Rp12,085 per US dollar. Rupiah managed to escape from US dollar pressure amid weakening Asian currencies.
Rumors among public said that President Joko “Jokowi” Widodo would increase fuel prices on November 1, 2014. Although the rumor had been dismissed, market makers have speculated that the fuel price hike would happen soon.
According to Juniman, the fuel price hike announcement would be preferred on the weekend since it would reduce unnecessary political costs incurred by protests or political process at the House of Representatives (DPR).
Juniman explained that rupiah might strengthen next week to Rp11,950 if the fuel price was to be increased. Provided otherwise, Juniman said, rupiah might dip to Rp12,200 per US Dollar.