TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo said the current rupiah depreciation is not something to worry about as rupiah is still in a good condition. “We hope it’s only temporary,” he said on Wednesday, September 9.
According to Agus, currencies from other countries are also depreciating. From January to August, rupiah had depreciated by 14 percent.
“However, rupiah is not the weakest among other currencies. For example, Brazil’s depreciation in 44 percent and Turkey’s is 25 percent,” said Agus.
Agus said external factors are the main causes of rupiah depreciation. Dollar’s growing influence, The Fed’s plan to raise interest rate and Chinese yuan devaluation cause movement in rupiah’s volatility.
Agus said BI always strives to prevent rupiah’s volatility from getting too high. “In 1997 and 1998, rupiah could depreciate from Rp2,500 to Rp15,000. Now, we keep volatility from reaching alarming number.”