TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro said that Indonesia's economic fundamentals remain strong despite recent corrections experienced by the stock price index and the rupiah rate against the US dollar.
Yesterday, the JCI closed down 98.02 points (1.99 percent) lower to 4,837.79 bps, while the LQ45 sliding 20.94 points (2.48 percent) to 825.11. The rupiah is still perching above the Rp13,000-mark at Rp13,326 per US dollar.
The rupiah correction, according to Bambang, happens because the greenback continues to strengthen. "Not just us, other countries' currencies also depreciated."
It's just that, he said, most foreign currencies are accustomed to the US dollar gain. As for Indonesia, this correction is relatively new as from 2011 to 2013 the rupiah appreciated sharply.
"What happens now is we are shocked by these changes," he said.
On Thursday this week, the Federal Reserve plans to release the minutes of the Federal Open Market Committee (FOMC) meeting on its key interest rate. Market participants are worried of a possible Fed Rate hike.
Investa Sarana Mandiri analyst Kiswoyo Adi Joe said as long as there is no certainty about the timing of a Fed Rate hike, global stock markets—including the IDX, will continue to experience high volatility with a tendency to weaken. Earlier, the World Bank and the IMF warned about the possibility of a global financial turbulence if the Fed Rate hike is not done in a timely manner.
SINGGIH SOARES | ANTARA