Rupiah Drops, Airlangga Says Indonesian Fundamentals Remain Strong

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Antara)

JAKARTA - Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that Indonesia's economic fundamentals are quite strong. Although the rupiah continues to weaken, due to the benchmark interest rate in the United States (US).

"Of course we see this as a result of the interest rate in America, then also related to the relatively good policy towards the American economy. Therefore, Indonesia is fundamentally strong," he explained Friday, June 21.

Airlangga explained that Indonesia's relatively high economic growth reached 5.11 percent in the first quarter of 2024 and inflation was still recorded low at 2.8 percent, and Indonesia's trade balance was still in surplus.

"Then also from relatively high competitiveness, we also (increase competitiveness) from IMD (up to position) 27 from 34, jumping 7 points, even higher than various countries," he said.

Therefore, Airlangga explained that fundamentally the consumer confidence index is good, PMI (Purchasing Manager's Index) is positive above 50, so that Indonesia's fundamentals remain strong. So that regional treasury factors must be maintained positive.

According to Airlangga, in the future the Government will continue to maintain investment and encourage Foreign Exchange Export Results (DHE). Therefore, exporters are expected to include their DHEs in the country.

"Of course what we need to maintain is that our investment must accelerate in the future, then we encourage DHE and we ask entrepreneurs whose exports still have foreign exchange in LN to be put into the country," he said.

For information, citing Bloomberg, the Rupiah exchange rate on Friday, June 21, 2024, the rupiah exchange rate on the spot market closed lower by 0.12 percent at the level of Rp. 16,450 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.23 percent to a price level of Rp. 16,458 per US dollar.