BI Says Rupiah Is Getting Stronger Driven By Foreign Capital Flows

Illustration (Photo: Doc Antara)

JAKARTA - Bank Indonesia (BI) revealed that the rupiah exchange rate was strengthened, supported by the consistency of the monetary policy mix of Bank Indonesia and the increasing flow of foreign capital inflows.

The Governor of Bank Indonesia (BI), Perry Warjiyo, said the rupiah exchange rate until September 17, 2024 strengthened to IDR 15,330 per US dollar or strengthened 0.78 percent compared to the position at the end of August 2024.

"The strengthening of the rupiah is recorded to be higher than the appreciation of regional currencies such as Won Korea and Indian Rupees which strengthened by 0.32 percent and 0.13 percent," he said at a press conference, Wednesday, September 18.

With these developments, Perry said that when compared to the level at the end of December 2023, the rupiah exchange rate was also appreciated at 0.40 percent, better than the dynamics of regional currencies such as Indian Rupees and Korean Won, which were still subject to a depreciation of 0.66 percent and 3.41 percent, respectively.

Therefore, Perry is optimistic that the rupiah exchange rate is predicted to continue to strengthen in line with attractive returns, low inflation, and still good prospects for Indonesia's economic growth, as well as Bank Indonesia's commitment to maintaining economic stability.

In the future, all monetary instruments will continue to be optimized, including strengthening the pro-market monetary operations strategy through optimizing the Bank Indonesia Certificate (SRBI), Sukuk Bank Indonesia (SVBI), and Sukuk Valas Bank Indonesia (SUVBI) instruments to strengthen policy effectiveness in attracting foreign capital inflows and supporting strengthening the rupiah exchange rate.