Rupiah Is Predicted To Strengthen Driven By Negative Sentiments From Domestic

JAKARTA - The rupiah exchange rate in trading Thursday, February 27, 2025 is expected to move higher against the United States (US) dollar.

To note, citing Bloomberg, on Wednesday, February 26, 2025, the rupiah spot exchange rate closed down 0.06 percent to the level of Rp. 16,381 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.44 percent to a price level of Rp. 16,387 per US dollar.

Currency Observer Ibrahim Assuaibi said US President Donald Trump threatened higher trade rates, while weak consumer confidence data sparked growing concerns over the slowing US economy.

"Trump added to negative sentiment by threatening to impose tariffs on copper. Earlier this week, he also hinted that a 25 percent tariff on Canada and Mexico would be imposed in early March," he said in a statement, quoted Thursday, February 27.

According to him, the levies on imports from the two countries were on time and on schedule even though both of them had made efforts to strengthen border security.

In addition, Trump did not specifically mention the March 4 deadline when the tariff would take effect.

"This move will apply to US imports worth more than $918 billion from Canada and Mexico, and threatens to destabilize North America's highly integrated economy," he explained.

In addition, US data shows consumer confidence in February deteriorated at its sharpest speed in 3-1/2 years, with inflation expectations soaring for 12 months.

Meanwhile, Germany's economy has shrunk in the last three months of 2024 compared to the previous quarter.

Meanwhile, from within the country, President Prabowo Subianto officially launched the first gold business or bullion service service in Indonesia, and PT Pegadaian and PT Bank Syariah Indonesia Tbk (BRIS) have obtained a permit for the bullion business.

The implementation guidelines are through the Financial Services Authority Regulation (POJK) Number 17 of 2024 concerning the Implementation of Bulion Business Activities.

Ibrahim said that Bullion is a financial service institution (LJK) that carries out gold-related businesses in the form of gold deposits, gold financing, gold trading, gold storage, and/or other activities.

"Indonesia, known as one of the world's largest gold-producing countries. The construction of the Bullion Bank aims to optimize the use of national gold reserves so as not to continue flowing abroad without maximum management in the country," he said.

Meanwhile, the bullion business can maximize the added value of gold resources in Indonesia, namely gold from mines and gold stocks owned by the community.

According to him, Bullion's efforts could potentially increase retail gold consumption which will spur an increase in the gold industry and the entire business in the gold ecosystem that is accommodated with an additional added value (VA) of up to IDR 30 trillion-IDR 50 trillion.

"The presence of the Bullion Bank is in line with the movement of world gold prices which have continued to accelerate since 2024 and continue throughout this year," he said.

Ibrahim estimates that the rupiah will fluctuate but close higher on trading Thursday, February 27, 2025, in the price range of IDR 16,320 - IDR 16,390 per US dollar.