Analyst: Rupiah Can Strengthen Until The End Of 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - Senior Portfolio Manager, Equity PT Manulife Aset Manajemen Indonesia (MAMI) Samuel Kesuma projects that the rupiah exchange rate will strengthen in the range of IDR 14,900-15,300 per US dollar by the end of the year.

According to Samuel, the current weakening of the exchange rate is a temporary spike that is more due to global factors.

"The recent weakening of the rupiah exchange rate is due to more global factors, and one of the focuses of Bank Indonesia (BI) is currently also appropriate, namely efforts to stabilize the exchange rate," Samuel said in an official statement in Jakarta, quoted from Antara, Tuesday, April 23.

The current situation has triggered Bank Indonesia (BI) to maintain the benchmark interest rate. For information, the BI or BI-Rate benchmark interest rate was recorded at 6 percent.

Currently, BI continues to strengthen the policy mix to maintain exchange rates through intervening in the currency market, and the purchase of Government Securities (SBN) in the secondary market which is also expected to support the bond market.

The rupiah exchange rate against the US dollar in trading on Tuesday closed higher supported by the Indonesia Trade Balance surplus.

At the end of trading Tuesday, the rupiah exchange rate rose 17 points or 0.10 percent to Rp. 16,220 per US dollar from the previous Rp. 16,237 per US dollar.

According to Bank Permata Economist Head Josua Pardede, positive sentiment for the rupiah comes from the release of Indonesia's trade balance data for March 2024.

Based on data from the Central Statistics Agency (BPS), the trade surplus amounted to 4.47 billion US dollars. This surplus exceeds market expectations of 1.23 billion US dollars and is significantly higher than the February 2024 surplus of 834 million US dollars.