Economist: Market Players Take Action To Take Profit Ahead Of Eid Al-Fitr 2024
JAKARTA - Bank Mandiri economist Reny Eka Putri said market participants made a profit take ahead of Eid Al-Fitr 2024 so that it affected the volatility of the rupiah exchange rate against the US dollar. "The activity of profit ahead of Eid al-Fitr and the issuance of foreign capital from the domestic market are also the cause of rupiah weakening," said Reny, quoted from Antara, Wednesday, April 3. He said domestic sentiment also affected the current weakening of the rupiah. rupiah depreciation from the domestic side was influenced among others by dividend repatriation in the first quarter of 2024 which tended to increase demand for the US dollar. Total net capital outflow from the stock market and domestic bonds reached Rp27.9 trillion month to date (mtd) or Rp6.6 trillion year to date (ytd). From within the country there is a concern about the widening of the Transaction Balance Deficit in 2024 to -1.5 percent of gross domestic product (GDP) from the previous -0.11 percent of GDP, mainly due to declining export performance due to weakening the global economy. Indonesia's export value in February 2024 reached 19.31 billion US dollars, down by 9.45 percent (year-on-year/yoy).
The decline mainly came from non-oil and gas exports of 10.15 percent (yoy), due to decreased exports of coal, iron and steel, as well as palm oil. Moderation of commodity prices and decreased global trade volume are the causes of the decline in Indonesia's non-oil and gas exports. sectorally, a decrease occurred in exports of processing industry products by 11.49 percent (yoy) as well as the mining sector and others by 7.54 percent (yoy), while the agricultural sector grew 16.91 percent (yoy).