Rupiah Exchange Rate Is Better Than Thai And Indian Currency

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) assesses that the Rupiah exchange rate against the United States (US) dollar currency is better than Thailand and India.

Meanwhile, BI noted that on December 20, 2023, the rupiah exchange rate rose by an average of 0.44 percent compared to developments in November 2023.

BI Governor Perry Warjiyo said that the strengthening of the rupiah exchange rate continued in line with the consistency of Bank Indonesia's monetary policy and the uncertainty of the global financial market began to subside.

"With these developments, the Rupiah exchange rate rose 0.37 percent compared to the level at the end of December 2022, better than the Philippine Peso, Indian Rupees, and Thai Baht, which were recorded to have weakened by 0.05 percent, 0.53 percent, and 0.85 percent, respectively," he explained at a press conference, Thursday, December 21.

Based on data from the Jakarta Interbank Spot Dollar Rate (JISDOR) BI, the position of the rupiah exchange rate is IDR 15,553 per US dollar on Thursday, December 21.

In addition to Bank Indonesia's stabilization policy, Perry explained that the continued appreciation of the Rupiah exchange rate was driven by the inflow of foreign portfolios, interestingly the returns of domestic financial assets, and the positive prospects for Indonesia's economy in the midst of global economic uncertainty.

"In the future, Bank Indonesia will continue to be aware of a number of risks that may arise and ensure the stability of the Rupiah exchange rate," he said.

Perry conveyed that the pro-market monetary operation strategy through SRBI, SVBI, and SUVBI instruments was optimized to improve liquidity management of domestic financial institutions and attract foreign capital inflows from abroad.

In addition, Bank Indonesia will continue to strengthen coordination with the Government, banking, and the business world to support the implementation of instruments for the placement of the Natural Resources Export Result Foreign Exchange (DHE SDA) in line with PP Number 36 of 2023.

The auction value for the Rupiah Securities of Bank Indonesia (SRBI) and Bank Indonesia Securities (SVBI) until December 19, 2023, respectively, has reached IDR 229.95 trillion and 421.50 million US dollars.

Meanwhile, Sukuk Valas Bank Indonesia (SUVBI) as a foreign exchange monetary instrument until December 19, 2023 has reached 129 million US dollars.

"These various instrument innovations are expected to support a pro-market monetary operation strategy and can attract incoming capital flows to strengthen Indonesia's external economic resilience from the impact of global rambatan," concluded Perry.