BI Calls Rupiah Stronger Than Malaysia And Thailand

Rupiah exchange rate (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) said that the stability of the rupiah exchange rate was maintained with a trend of tendency to strengthen, along with the consistency of monetary policy taken by Bank Indonesia and the low global uncertainty.

BI Governor Perry Warjiyo revealed that the Rupiah exchange rate until January 16, 2024 was relatively stable, only weakened 1.24 percent from the end of December 2023.

With Bank Indonesia's stabilization policy and the re-entry of foreign portfolio flows, it is in line with the withdrawal of domestic financial asset returns and the positive prospects for Indonesia's economy remain.

"The development of the Rupiah exchange rate is relatively better than other regional currencies, such as Ringgit Malaysia, Baht Thailand, and Won South Korea, which were recorded to have weakened by 1.95 percent, 2.82 percent, and 3.24 percent, respectively," he explained in RDG BI, Wednesday, January 17, 2024.

In the future, Perry said that the rupiah exchange rate would remain stable with a tendency to strengthen, supported by easing global uncertainty, a tendency to decrease the yield of bonds in developed countries, and a decrease in pressure on strengthening the US dollar.

According to Perry, the positive development of the rupiah exchange rate in the future is supported by the Bank Indonesia stabilization policy.

In addition, BI will remain consistent in stabilizing the exchange rate and strengthening the pro-market monetary operations strategy through optimizing the SRBI, SVBI, and SUVBI instruments in order to attract foreign portfolio inflows and deepening the money market.

"The close coordination between Bank Indonesia and the Government, banks, and the business world continues to be strengthened to support the implementation of instruments for the placement of Foreign Exchange Foreign Exchange Results for Natural Resources (DHE SDA) in line with PP Number 36 of 2023," he concluded.