Not Only Property And Banking, Strengthening Rupiah For The Cuan Health Sector

Shares (Photo: Antara)

JAKARTA - Strengthening the Rupiah exchange rate against the United States (US) dollar has made the health sector profitable.

"If the exchange rate strengthens, it means that the sector that benefits is the health sector. So it's not just property (or) banking, health also gets positive sentiment," said Head of Retail Research Sinarmas Sekuritas Ike Widiawati quoting Antara.

For example, shares of PT Industri Jamu Dan Pharmacy Sido Muncul Tbk (SIDO) and PT Siloam International Hospitals Tbk rose 3.82 percent respectively as of Thursday, September 12, and 2.43 percent as of Friday, September 13.

He estimates that the rupiah exchange rate will be stable in the range of Rp15,500-Rp15,900 per US dollar.

"This conducive condition for the rupiah exchange rate certainly provides positive sentiment for the health sector and various other sectors indirectly," said Ike.

If you look at the Composite Stock Price Index (JCI) closed up 13.97 points or 0.18 percent to 7,812.12 on Friday, five sectors rose, including the technology sector at 4.09 percent, followed by the health sector and the non-primary consumer goods sector, which rose 0.76 percent and 0.58 percent, respectively.

On this occasion, he also explained the potential for the rupiah exchange rate if Indonesia became a member of BRICS (Brazil, Russia, India, China, and South Africa).

BRICS' efforts to de-dollarize received threats from US presidential candidate Donald Trump who promised to impose a 100 percent tariff on goods from countries that no longer use the US dollar in international trade.

Although there is an issue that Indonesia will join BRICS from 2021, until now it has not been included and the opportunity to get involved in the organization was decided during the administration of the elected president Prabowo Subianto.

"In my opinion, it seems that we will not join the BRICS, because we are already afraid if for example Trump is elected. I think our government, which will later be Mr. Prabowo, might also consider that if we enter the BRICS, our exchange rate will be stronger (strong), but the impact on the economy if we apply the 100 percent tariff by the US, funny things too," he said.

"If for example Kamala Harris becomes president, then it can be discussed entering BRICS. Only if Trump becomes president, it's scary," said Ike.