TEMPO.CO, Jakarta - The government and Bank Indonesia (BI) continue to cooperate and coordinate to keep the rupiah`s fluctuation in check.
"The rupiah is under pressure due to global factors, but it is not just happening to us but also with all other currencies," Finance Minister Bambang Brodjonegoro stated on Friday.
According to Brodjonegoro, the government and BI held a discussion on the rupiahs frequent depreciation.
He pointed out that the government has made efforts to maintain the stability of the rupiah.
"No predictions should be made as the rupiah weakens due to external and internal factors," he affirmed.
Earlier, BI had said that it is applying three short-term strategies to create stability in the rupiah amid the protracted global crisis.
"We will optimize monetary operations both in the rupiah and foreign exchange markets," Juda Agung, the head of the economic and monetary policy department of the central bank, noted.
The three strategies are strengthening the management of the rupiahs liquidity in the financial market, foreign exchange demand and supply, and foreign exchange reserves.
The three strategies will be applied through several policies including intervening in the foreign exchange market to control the rupiahs volatility and purchasing state securities in the secondary market by observing the market liquidity.
"We will strengthen the management of the rupiahs liquidity through open market operations to create greater liquidity," Juda claimed.
The rupiah`s liquidity will be managed by changing the auction mechanism, he explained.
The central bank will also change the mechanism of auction for the BI deposit certificate (SDBI) from variable rate tender to fixed rate tender and would issue six-month SDBIs.
The central bank would re-issue 9-month and 12-month Bank Indonesia Certificates (SBIs) with a fixed rate tender mechanism.
The frequency of auctions for Foreign Exchange (FX) Swap would be changed from twice a week to once a week, Juda noted.
The mechanism of auction for term deposits for foreign exchange would be changed from variable rate tender to fixed rate tender, and the term would be extended up to three months, he added.
The central bank would lower the monthly foreign exchange purchase limit from the current US$100,000 to US$25,000 per client.
"We will coordinate with the government and the central banks of other countries to strengthen our foreign exchange reserves," he added.