Gonjang-jing Rupiah Meweak, Other Countries Are More Persive

Illustration (Photo: Doc. Antara)

JAKARTA The weakening of the rupiah exchange rate against foreign currencies, especially US dollars, received a response from the Governor of Bank Indonesia (BI) Perry Warjiyo.

In his statement, Perry said that the depressed Indonesian exchange rate could not be separated from the phenomenon that occurred throughout the world.

According to him, not only Indonesia experienced a weakening of the currency but also in a number of countries, especially emerging countries.

The dollar exchange value is now very, very strong, because in America there is a faster economic recovery. Then inflation is also high, making the Fed fund rate (US reference interest rate) increase high," he said during the G20 official agenda in Washington DC on Wednesday, October 12 local time.

Perry noted that the US Dollar Index (DXY) is now at the 113 level. This amount shows a strengthening of around 18 to 19 percent this year.

"Compared to mid-2021, the dollar index at that time was only around 89 to 90. This means that there is a strengthening of the dollar of around 25 percent," he said.

Perry added that the central bank found that the rupiah exchange rate in 2022 weakened in the range of 6 percent.

"But look at other developing countries experiencing a deeper weakening or depreciation. Of course this is a form of stability that we have achieved," he said.

As a comparison, BI had released data until September 21, 2022, pressure on the exchange rate of friendly countries was known to be deeper, such as India which was depreciated at 7.05 percent, Malaysia 8.51 percent and Thailand 10.07 percent.

Separately, capital market observer Teguh Hidayat said Indonesia was lucky to be able to protect the economy thanks to revenue from export commodities.

"We are coal exporters. In Indonesia we benefit from the value of exports, the trade balance is in surplus, as a result, strong economic growth and strong rupiah against the US dollar," said Teguh.