Chatib Basri: Rupiah will Depreciate Futher

TEMPO.CO, Jakarta – Former finance minister Chatib Basri projected the rupiah exchange rate against the US dollar will still depreciate in 2015. The University of Indonesia economist even said the rate may plunge to below Rp13,000 per US dollar in the first half of the year.

However, Chatib said there is no need to worry about the correction, as it is something natural and inevitable. Whatever the government does, he said, there is no stopping to the rate of depreciation.

Lucky Bayu Purnomo, stock market analyst from LBP Enterprises - Financial & Investment Advisor, is more pessimistic. Lucky predicted that in the first quarter the rupiah will inevitably exceed the Rp13,000 per US dollar mark, following the deficits in the import and export trade balance.

On the contrary, Asian Development Bank (ADB) president Takehiko Nakao said the rupiah correction is not something people should over-think. The greenback appreciation does not just put a pressure on the rupiah, but also on the currencies of other developing countries. "Especially now that Indonesia is in a more stable condition than last year," said Takehiko Tuesday.

Indef economist Enny Sri Hartati said the rupiah will show significant movements once the government amends the 2015 State Budget. In the revised budget, market participants and the general public will be able to have a better view on the government's commitment to improve the economy, such as by relocating budgets for infrastructure development.  

The rupiah was points away from the Rp13,000 per US dollar mark in December last year, pressured by the dollar's appreciation against all global currencies and the increasing corporate demand for foreign currencies ahead of the year-end.

ANDI RUSLI | ODELIA SINAGA | M. AZHAR