TEMPO.CO, Jakarta - Bank Indonesia (BI) has promised to monitor the fluctuation of the Rupaih's exchange rate in the market, and is prepared to intervene in order to maintain the stability of the Rupiah.
"BI is always ready to intervene in order to keep the Rupiah's fluctuation within a narrow and acceptable band - and our efforts could be seen in the continuous decline in our foreign exchange reserves," said BI Governor Agus Martowardojo at a press conference in Jakarta on Tuesday, August 4.
Agus said that the average depreciation of the Rupiah stands at around 8,5 percent year to date (ytd), while its' month to date (mtd) depreciation so far has averaged just below one percent.
That said, Agus continued, the figure is much better compared to the average depreciation experienced by other currencies in the region. "For example, the mtd depreciation in Singapore and Malaysia - as well as several other ASEAN countries - has averaged above one percent in recent months," he said.
Indonesia's ytd depreciation, continued Agus, is much better compared to other currencies - both globally as well as regionally - ytd depreciation, which could be as high as 10 to 15 percent.
According to the Governor, the main driver behind Rupiah's depreciation is the uncertainty surrounding the Federal Reserve Bank of America's plan to raise its' Fund rate. The Rupiah, continued Agus, is not being helped by the general perception that the Indonesian economy is slowing down.
"This perception is rather unfounded - especially considering that Indonesia's economic growth in the second semester of 2015 has averaged above five percent, which is a good indicator that our economy is actually on the right track," finished Agus.