JCI And Rupiah Keok, Airlangga: We Are Still Watching The Long Term

Coordinating Minister for Economic Affairs Airlangga Hartarto opened his voice regarding the decline in the Composite Stock Price Index (JCI) and the weakening of the rupiah exchange rate.

Airlangga emphasized that the government will continue to strive to strengthen Indonesia's economic fundamentals in order to encourage the economy amid global uncertainty.

"Of course we are still looking at the long term and we from the stock exchange, of course we hope this fundamental situation can be pushed again," said Airlangga to the media crew, Friday, February 28.

Airlangga explained that the government does not see the movement of the exchange rate or the stock exchange index daily, but in the long term.

"You don't see it daily," he said.

Therefore, Airlangga emphasized that the government continues to monitor the movement of the exchange rate and the JCI.

To note, the rupiah exchange rate is currently weakening against the US dollar, which reached an upper level of IDR 16,500 per US dollar. Meanwhile, the JCI slumped to the level of 6,300.1 or weakened 2.86 percent in today's session I trading, Friday, February 28.

Previously, the President Director of the Indonesia Stock Exchange (IDX), Iman Rachman, explained that the decline in the JCI in the last five days could be caused by various factors, both global, domestic, and corporate.

Iman said that from a global perspective there are several issues that affect, such as the tariff war between the US and its partners, and the Fed's policy regarding interest rates is one of the main factors that affects the flow of foreign funds to the Indonesian stock market.

"Trump 2.0 is not easy. Currently, about 70 percent of global funds continue to flow to high-quality assets in the US. In addition, trade tariff threats continue to emerge, as previously happened to Mexico and Canada, as well as the United Arab Emirates," he told media crews, Friday, February 28.

In addition to the tariff war policy, Iman conveyed another factor, namely policies related to value added tax (VAT) which are expected to decrease but are not in accordance with market expectations.

"There is hope that VAT will fall, but the reality will show a different trend. Meanwhile, the still high US interest rate makes investors prefer low-risk assets over stocks in emerging markets," he explained.