Minister Blames Market Speculation Over Plummeting Rupiah

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  • TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Soyan Djalil asserted that plummeting Rupiah exchange rate, which almost reaches Rp 13,500 per US Dollar, was due to market speculation.

    "Currently, people speculate when the Fed will increase its interest rate. And market players love to speculate during uncertain situation," Sofyan said on Friday, July 31, 2015.

    Currently, market players are waiting for the Fed to increase its interest rate, which predicted to cause investors to move their fund to the United States. Such condition puts pressure on the Rupiah as demand for the greenbacks increase.

    Despite the pressure, Sofyan said that Indonesia's economic condition is still in good shape. Sofyan added that the government had recorded an export surplus and lower imports. Sofyan also expected economic condition in the second quarter could improve compared to Q1. The government, according to Sofyan, continues to make efforts to improve the economy.