Rupiah Potentially Weakens Due To Domestic Sentiment

US and Rupiah dollars (Photo: dock. Antara)

JAKARTA - The rupiah exchange rate in trading Tuesday, October 22, 2024 is expected to weaken against the United States (US) dollar.

Quoting Bloomberg, the Rupiah exchange rate on Monday, October 21, 2024, the rupiah exchange rate on the spot market closed down 0.15 percent at the level of Rp. 15,504 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed slightly higher by 0.006 percent to a price level of Rp. 15,465 per US dollar.

Director of PT Profit Forexindo Berjangka Ibrahim Assuaibi said that the composition of the Prabowo-Gibran cabinet had been announced. Old names are still scattered, especially in the economic team.

"There are those who say that the composition of the Red and White Cabinet still smells of Jokowi. There are party representatives, professionals and supporters or the Prabowo-Gibran winning hore team. Also, many names previously sat in the Jokowi-Ma'ruf Cabinet," he explained in his statement, quoted on Tuesday, October 22.

Even so, Ibrahim said that the exact number of cabinets announced by President Prabowo Subianto was fat, or gemoy and tended to be obese.

According to Ibrahim, the names of the cabinet arrangements that have been announced are an act of gratitude, which has been around for Prabowo -Gibran during the previous presidential election. This return action made the market respond negatively.

In fact, the number of Red and White Cabinets is the highest in Asia Pacific, and it could even be the largest in the world with the number of ministers and deputy ministers reaching 105. Meanwhile, the average number of ministers in the Asian Pacific Country alone is 22 ministers.

However, outside the cabinet that has been announced by President Prabowo, there are still several supporting political parties (NASDEM Party, PKS and PDIP) that have not yet received a quota for ministerial positions.

Ibrahim said the market estimates that many ministers or vice ministers may not have lived long/resupled for up to 5 years, because there are still many candidates for the Minister and Deputy Minister who are queuing from supporting political parties.

Ibrahim estimates that the rupiah will fluctuate but close lower on trading Tuesday, October 22, 2024, in the price range of IDR 15,490 - IDR 15,580 per US dollar.