Affected By Global Uncertainty, Rupiah Movement Is Predicted To Weaken

Illustration (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate on Monday, November 13, 2023 is expected to weaken again due to global uncertainty due to conflicts in the Middle East.

Quoting Bloomberg, the Rupiah exchange rate on Friday, November 10, the rupiah spot exchange rate fell 0.26 percent to Rp15,695 per US dollar.

Meanwhile, Jisdor's rupiah exchange fell 0.28 percent daily to a price level of IDR 15,693 per US dollar.

Ibrahim Assuaibi, Director of PT. Laba Forexindo Berjangka, said that in the midst of global uncertainty due to conflicts in the Middle East and the most important thing that the government must strive for is how to maintain the momentum of recovery of domestic demand after the pandemic.

"Domestic demand plays a far more role in Indonesia's national economy. Meanwhile, the role of exports or foreign trade relations is not very significant," he said in his statement, Monday, November 13.

Ibrahim said the government must strive to maintain the momentum for the recovery of domestic demand. Efforts that the government can make include various government stimuli and spending, including tax stimulus and social assistance.

The government also needs to avoid counter-productive shocks from policies such as increasing the price of subsidized fuel oil (BBM).

Ibrahim said Previously, Bank Indonesia (BI) said Indonesia's economic growth in the third quarter of 2023 remained strong amid global economic uncertainty, supported by solid domestic demand.

Strong economic growth in the third quarter of 2023 was supported by household consumption which grew by 5.06 percent (yoy), along with the continued increase in mobility, stable people's purchasing power, and high consumer confidence.

In the future, Indonesia's economic growth will be supported by domestic demand, both private and government consumption, as well as investment.

With these developments, Bank Indonesia projects that economic growth for the entire year in 2023 will remain in the range of 4.5 to 5.3 percent.

Ibrahim estimates that the rupiah will fluctuate but closed lower in trading Monday, November 13 in the price range of Rp. 15,680- Rp. 15,770 per US dollar.