The Rupiah Is Predicted To Be Due To US Economic Data

JAKARTA - The rupiah exchange rate in trading Tuesday, February 25, 2025 is expected to weaken against the United States (US) dollar.

To note, citing Bloomberg, on Monday, February 24, 2025, the rupiah spot exchange rate was closed up 0.22 percent to the level of Rp. 16,278 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.02 percent to a price level of Rp. 16,303 per US dollar.

Currency Observer Ibrahim Assuaibi said risk evasion was increasing as PMI services were weaker than expected, coupled with a weak reading of consumer sentiment, sparking fears that private spending was slowing.

"The data comes just a week after retail sales were weaker than expected for January," he said in his statement, quoted on Tuesday, February 25.

According to him, this has prompted increased concerns that private spending is the world's largest major economic driver to slow down amid pressure from strong inflation and relatively high interest rates.

In addition, all eyes are on the progress of talks to end Russia's war in Ukraine, which is entering its fourth year.

Next Sunday EU leaders will meet for an extraordinary summit on March 6 to discuss additional support for Ukraine and European security guarantees.

"This comes after US President Donald Trump started talks with Russia to end the war but without inviting Ukraine or the European Union to the negotiating table. A senior Russian diplomat said the Russian and US teams planned to meet this week to discuss improving relations," he explained.

Meanwhile, from within the country, President Prabowo Subianto officially launched Daya Anagata Nusantara or Danantara Indonesia and emphasized that the initial funds managed would come from the results of the efficiency carried out by the government.

The inauguration of the Danantara was marked by the signing of the Presidential Decree on the Anagata Nusantara Resources Investment Management Agency (Danantara).

Prabowo said, Danantara will manage funds worth IDR 300 trillion or around 20 billion US dollars as a result of strict financial discipline in the first 100 days of government.

The financial discipline in question is budget efficiency in various fields carried out by the Prabowo government. The initial evaluation of Indonesia's latest sovereign wealth fund shows that Danantara's Assets in Management (AUM) exceed 900 billion US dollars or around Rp. 14,700 trillion.

Prabowo in his speech explained that the funds would be allocated for 20 plus national projects as part of Indonesia's industrialization and downstreaming.

The first wave of investment from Danantara will focus on mineral downstream projects such as nickel, bauxite, and copper, in addition to other projects such as data center construction, artificial intelligence, oil refineries to renewable energy.

Ibrahim estimates that the rupiah will fluctuate but close lower in trading on Tuesday, February 25, 2025 in the price range of IDR 16,260 - IDR 16,330 per US dollar.