TEMPO.CO, Jakarta - Bank Indonesia should take the necessary measures to stabilize the rupiah against the US dollar, Coordinating Minister for Economic Affairs Darmin Nasution remarked. He said Indonesian currency rupiah weakened against the US dollar as market players were responding to economic developments in the United States.
The rupiah may encounter serious pressures in the year 2018 amid US tax reforms, the US Federal Reserve's further monetary tightening, and unstable geopolitics. Therefore, Bank Indonesia should stabilize the rupiah exchange rate through foreign reserves.
Read also: BI to Intervene Market, Keep Rupiah at Bay
"It needs control now," the senior minister said.
Bank Indonesia earlier confirmed that foreign reserves until March 2018 are more than enough to stabilize the rupiah exchange rate.
Senior Deputy Governor of Bank Indonesia Mirza Adityaswara said the current foreign exchange reserves are sufficient to cover 8 months of imports.
The Indonesian rupiah strengthened by 13 points to reach Rp13,743 from Rp13,756 per US dollar at the Jakarta Interbank Spot Dollar Rate on Tuesday's opening.
Samuel Securities' economist Ahmad Mikail noted that the US dollar depreciated against some Asian currencies, including the rupiah, following the issuance of the US trade protection policy by imposing tariffs on the imports of steel and aluminum.
President Donald Trump, on Thursday (March 1), announced tariffs of 25 percent on imported steel and 10 percent on aluminum to which the global market has responded negatively over fears of a trade war.
The import tariffs will be applicable on US allies and significant trade partners: China, Canada, Mexico, South Korea, Japan, and the European Union.