Happy News From The Governor Of BI: Rupiah Will Continue To Strengthen This Year

BI Governor Perry Warjiyo (Photo: Capture BI Youtube screen)

JAKARTA - Gubernur Bank Indonesia (BI) Perry Warjiyo secara tegas menyatakan bahwa nilai tukar rupiah pada selama tahun ini akan terus mengalami penguatan setelah sebelumnya sempat tertekan di tahun lalu

"We believe the exchange rate will strengthen and will continue to maintain it," he said at the launch of the 2022 Bank Indonesia Transparency and Accountability Report (LTABI) on Monday, January 30.

According to Perry, this optimism is based on a number of basic assumptions. First, the central bank will continue to strengthen exchange rate stability through the foreign exchange side.

VOI noted that BI took a policy of providing competitive returns (according to market mechanisms) to dollar deposits in Indonesia.

Not only that, but the monetary authority will also provide incentives for GWM exemption for banks from dollar deposits forwarded to Bank Indonesia.

"We will optimize foreign exchange traffic which is useful for the stability of the rupiah exchange rate," he said.

Second, a progrowth macroprudential policy. This initiative was realized through a number of stimuli to accelerate the financial sector so that it continues to grow in 2023.

"We provide 0 percent DP incentives (for vehicle loans and property LTV). Liquidity is also confirmed in more circumstances," he added.

Third, strengthen cooperation with the government through a policy mix. Fourth, the signal of the US central bank The Federal Reserve which will not aggressively raise interest rates this year so that the impact of pressure on the exchange rate can be reduced.

"The direction of monetary policy is profitability with macroprudential growth," he said.

The BI report revealed that the rupiah exchange rate until December 21, 2022 was depreciated at 8.56 percent year to date (ytd) compared to the level at the end of 2021.

Meanwhile, the rupiah in early 2023 experienced appreciation, which until January 18, 2023 rose 3.18 percent point to point and 1.20 percent on average compared to the level of December 2022.