JAKARTA - The rupiah exchange rate in trading Thursday, June 27, 2024 is expected to weaken against the United States (US) dollar.
Quoting Bloomberg, the Rupiah exchange rate on Wednesday, June 26, 2024, the rupiah exchange rate on the spot market closed lower by 0.23 percent at the level of Rp. 16,413 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.34 percent to a price level of Rp. 16,435 per US dollar.
Director of PT.Laba Forexindo Berjangka Ibrahim Assuaibi said the market is waiting for inflation data on the PCE price index to be released this week. The data, which will be released on Friday, is a measure of the Federal Reserve's choice of inflation, and is likely to be a factor in the central bank's prospects for interest rates
"The recent signs of US economic resilience from strong purchase manager index data and consumer confidence reading sparked concerns that the Fed will have enough room to keep interest rates high for a longer period of time," he said in his statement, quoted Wednesday, June 26.
Ibrahim said In Asia, sentiment towards China remained largely strained amid concerns about the potential for trade wars with Western countries, especially after Beijing marked this possibility in facing European rates against imports of Chinese electric vehicles.
Concerns over the trade war have seen the Chinese index decline sharply throughout June, along with reduced support for more stimulus measures in the country.
From an internal point of view, Ibrahim conveyed that amid public concerns about fluctuations in the rupiah exchange rate and uncertain global economic conditions, the government is still optimistic that Indonesia's macroeconomic fundamental condition is still in good condition.
Ibrahim said that currently the government's main challenge is how Indonesia can be vigilant and anticipate so that the negative impact of global conditions does not enter the country and the importance of cooperation between parties including Bank Indonesia, the government, and the private sector.
"This cooperation is needed to maintain market optimism and ensure that the Indonesian economy can survive and develop despite global pressure," he said.
Ibrahim said that in order to support the strengthening of Indonesia's economy in 2024, there are several factors that must be considered by the government, including increasing consumption and investment thanks to good macroeconomic conditions, strengthening Indonesia's commodity exports, resilience of the financial system from the impact of global economic turmoil.
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Then, control inflation to remain low, increase the salary of State Civil Apparatus (ASN). In 2024, the sustainability of downstream natural resources (SDA), as well as infrastructure development in the State Capital (IKN) of the Archipelago is considered to contribute to efforts to equalize the economy.
Meanwhile, in terms of Bank Indonesia, it remains in the corridor to stabilize the rupiah currency by implementing an economic mix strategy and intervening in foreign exchange markets (varlas) and bond sales in the Domestic Non Deliverable Forward (DNDF) trading.
Ibrahim estimates that the rupiah will fluctuate but close lower in trading Thursday, June 27, 2024, in the price range of IDR 16,400 - IDR 16,460 per US dollar.
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