TEMPO.CO, Jakarta-The Jakarta interbank spot dollar rate (Jisdor) on Friday afternoon, July 1, gained to Rp13,182 per US dollar. On the previous day, the rupiah closed at Rp13,210 per dollar.
"Market players are still reacting positively to the tax amnesty law, allowing the rupiah to strengthen," Platon Niaga Berjangka analyst Lukman Leong said in Jakarta Friday.
The tax amnesty program, he said, also brings positive sentiments that will trigger capital inflows; one way is through the stock market.
"The market's speculation over the domestic economy following the passing of the tax amnesty bill is quite positive, creating a mid-term uptrend for the rupiah against the US dollar."
Additionally, Lukman said that investors' fear of an inflation jump during the Ramadan and Eid season has begun to subside.
The Central Statistics Agency (BPS) reported that June's inflation stood at a low 0.66 percent, with the Consumer Price Index perching at 124.29.
Meanwhile, Bank Indonesia's (BI) mid-rate showed the rupiah moving up to gain over the greenback. The rupiah trades for Rp13,172 per US dollar on Friday, up from Thursday's Rp13,180.
ANTARA