Good News From Bank Indonesia, Rupiah Will Continue To Strengthen This Year

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) stated that the strengthening of the rupiah is projected to continue this year. This was conveyed directly by BI Governor Perry Warjiyo in a discussion session on the outlook for the Indonesian economy today.

According to Perry, this positive signal is reflected in the fundamental value of the rupiah which remains firm against other foreign exchanges, especially the United States (US) dollar.

"Indonesia's economic growth continues to strengthen and be better than other countries," he said in Jakarta on Tuesday, February 28.

Perry explained that another indication of an increasingly strong exchange rate is the increasingly sloping rate of inflation. In addition, the attractive yield of state securities (SBN) and the trade balance surplus also supports the strengthening of the rupiah this year.

"Bank Indonesia will continue to be committed to keeping the rupiah exchange rate stable," he stressed.

Perry's statement was consistent with what he put forward during a press conference at the Board of Governors' Meeting (RDG) some time ago. VOI noted that the appreciation of the rupiah is better than the appreciation of a number of other developing countries, such as the Philippines, Thailand, and Malaysia.

The rupiah, which continues to strengthen, is driven by foreign capital inflows into the domestic financial market in line with investor's positive perception of the domestic economic outlook that remains good with maintained stability, yields of domestic financial assets that remain attractive, and uncertainty in the global financial market that has eased," Perry said.