Weakly Rupiah, Reduce Purchase Of Import And Fixed Goods Investment In Non-Dependent Instruments

Illustration. (Photo: Doc. Antara)

JAKARTA - Consultant company Grant waste Indonesia provides three tips on responding to the rupiah exchange rate against the US dollar, which in recent days has continued to weaken to close to IDR 16,000 per US dollar.

The current weakening of the rupiah exchange rate is a tough challenge amid Indonesia's efforts to get out of the brink of inflation due to the COVID-19 pandemic and also the unfinished Ukraine-Russian war.

"As good citizens, it is time for us as Indonesian people to work hand in hand to ease and help the government to strengthen the rupiah exchange rate in the easiest ways for us to do this, but if it is done massively enough, it can maintain the stability of the rupiah exchange rate," he said in a statement quoted by Antara, Tuesday, November 29.

He explained three tips regarding the increase in the US dollar. First, namely continuing to buy domestic products and refraining from buying imported products.

"The higher the import rate, the weaker the rupiah exchange rate. Therefore, one of the easy steps we can take together is to reduce the purchase of imported products," explained Mikha.

This step is also able to help the Indonesian entrepreneurial industry so that it can grow and is expected to be able to reduce the unemployment rate.

The second tip is not hoarding dollars and exchanging them for rupiah immediately. The action is considered to be driving the demand for the rupiah so that the exchange rate is getting stronger.

"If there are some people who keep dollars as part of their financial portfolio, it will be very helpful if they exchange part of their dollar deposit into rupiah," he added.

The third tip is to keep investing in the country. One of the best options is to invest in assets that do not depend on the dollar exchange rate, one of which is in Government Securities (SUN).

"Not long ago, the Indonesian government issued SUN with the SBR004. SBR004 series is the right investment instrument in the midst of the current decline in the rupiah exchange rate. People can help the government by investing in domestic investment instruments such as buying ORI or SBN," said

The rupiah exchange this morning weakened 8 points or 0.05 percent to IDR 15,730 per US dollar compared to the position at the close of the previous trade of IDR 15,722 per US dollar. In several banks, US dollars have been sold for IDR 15,900.

Several factors or sentiments that still suppress the rupiah, one of which is massive demonstrations in China that could disrupt the economy and have a negative impact on the economy of other countries closely related to the Chinese economy.

In addition, the Fed's high-interest rate policy to suppress the decline in US inflation also triggered the strengthening of the US dollar.