The Rupiah Is Predicted To Strengthen Again In Semester II-2024

Illustration of Rupiah (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo is optimistic that the rupiah exchange rate will strengthen again in the second semester of 2024.

"Rupiah is now a bit ups and downs. We are sure that in the second semester we will appreciate it, leading to its fundamentals," Perry said at the launch of the 2023 Indonesian Economic Report, Wednesday, January 31, 2024.

In addition, according to Perry, financial digitization in Indonesia is among the fastest in the world as reflected in local government financial electrification measures, social assistance, MSMEs, and international cooperation, cross-border payments.

"Indonesia is among the fastest, including international cross-border payment cooperation," he said.

Furthermore, Perry ensured that his party would maintain and strengthen the mix of monetary policy to strengthen the rupiah exchange rate.

"We will continue to ensure that the rupiah is stable and will tend to strengthen," he explained.

Perry is also optimistic that the Indonesian economy in 2024 will record a positive performance above 5 percent, controlled inflation at 2.5 percent plus minus 1 percent, and credit at 10 percent to 12 percent.

On a different occasion, Perry weakened the rupiah exchange rate only temporarily or in the short term and was driven by the news circulating.

In the short term, there are news factors. One to two weeks ago there was news, which affected the rupiah exchange rate, and not only the rupiah but the whole world," he explained Tuesday, January 30, 2024.

Perry emphasized that not only the rupiah experienced a weakening but the exchange rate in other developing countries also recorded a weakening.

In addition, Perry said the rupiah exchange rate was still fundamentally strong, supported by trade balance surpluses, low inflation, SBN yields and good stocks.