RUPIAH TO BE STABLE AT ITS NEW EQUILIBRIUM

By Andi Abdussalam

Jakarta, Oct 20 (Antara) - The Indonesian rupiah this week hit its new equilibrium in value of Rp15,000 per US dollar which analysts said would not return to the level of Rp13 thousand or 14 thousand against the greenback.         Rector of Atma Jaya University Agustinus Prasetyantoko said it would be difficult for the rupiah to regain a stronger exchange rate amid the global uncertainty, which is expected to continue next year.         Yet, according to Bank Indonesia (BI) Governor Perry Warjiyo, the exchange value of the rupiah in its new equilibrium has been in a stable level based on the market mechanism. The rupiah has continued to depreciate since early this year.          For the first time since December 2015, the rupiah broke the psychological level of Rp14 thousand against the US dollar on May 7, 2018. It traded at Rp14,003 per dollar in the spot market. And this week it again broke another psychological level of Rp15 thousand per US dollar. On Friday (Oct 19) it was traded at Rp15.221 per US dollar     However, the depreciation of the Indonesia's currency exchange rate might be good for investment if it combines with the regulation's consistency and efficiency, according to the International Monetary Fund (IMF).

GOVERNMENT WARNED OF FALLING RUPIAH VALUES

By Andi Abdussalam

Jakarta, Sept 5 (Antara) - The government is warned of possible adverse effects of the depreciation of the rupiah value against the US dollar, which can reduce the people's purchasing power and cause companies to lay off workers.          In the face of the falling value of the rupiah, which on Wednesday reached Rp14,922 per US dollar from Rp14,896 on the previous day, the government must focus on resolving the problem.          "This is the time for the government and the business world to sit together to address the rupiah depreciation that burdens the community. I am worried that the increase in prices and production costs of companies will lead to layoffs," Sandiaga Salahuddin Uno, a politician with a business background, and the running mate of presidential candidate, Prabowo Subianto, stated.          Uno even noted that is not the time to mix politics with economics issues. He noted that the Indonesian peoples should not spend more time dealing with politics. "We should not mix economics with politics. Just focus on the economy first, that is what we hope for," Uno remarked.

GOVERNMENT TO FOCUS ON STABILIZING RUPIAH

By Andi Abdussalam

Jakarta, May 26 (Antara) - The Indonesian government, through the Finance Ministry and the central bank (Bank Indonesia/BI), will do its best to stabilize the rupiah, which has from early this year continued to weaken, reaching Rp14,200 per US dollar.          Based on data from the central bank, the rupiah had lost much of its value, weakening 4.53 percent until May 21, 2018 (year to date), hitting the lowest level since 2015.          Finance Minister Sri Mulyani Indrawati promised that the government will work together with BI to overcome the weakening of the rupiah against the US dollar.          "The government, together with BI, will continue to maintain the economic stability and maintain our rupiah currency," she stated in Sukoharjo District, Central Java, on Saturday.              She noted that several strategies have been undertaken by BI to stabilize the rupiah exchange rate, one of which is by raising its benchmark interest rate.          "This step is expected to strengthen the rupiah against the US dollar, while the government will maintain the state budget discipline," she added.          BI has raised its benchmark interest 7-Day Reverse Repo Rate by 25 basis points to 4.5 percent, hoping to prop up the currency.

PEOPLE SHOULD TAKE ADVANTAGE OF RUPIAH DEPRECIATION

by Andi Abdussalam

Jakarta, May 9 (Antara) - The government and the people, especially businesses, should be able to take advantage of the rupiah depreciation that has been taking place in the past few weeks.         Despite its risky impact, the weakening of rupiah also has positive effects, which offers advantage for exports by increasing the competitive edge of local products in the global market.         For the first time since December 2015, the rupiah broke the psychological level of Rp14 thousand per dollar on Monday. It traded at Rp14,003 per dollar in the spot market. The Jakarta Interbank Spot Dollar Rate announced by Bank Indonesia (BI/the central bank) on Tuesday showed that the rupiah weakened to Rp14,036 per dollar.         The rupiah fell again by 50 points to trade at Rp14,043 per dollar in the interbank spot market on Tuesday afternoon from the previous Rp13,993.         It fell 30 points to Rp14,073 per dollar in the Jakarta interbank spot market on Wednesday morning after it closed at Rp14,043 per dollar earlier.

BUSINESSES EXPECTED TO MAKE INNOVATIONS AMID RUPIAH'S APPRECIATION

by Andi Abdussalam

Jakarta, Oct 13 (Antara) - The strengthening of Indonesia's rupiah currency, which has appreciated from about Rp14,709 per US dollar a week earlier to Rp13,483 on Monday, will offer a good momentum for industries to develop creativity and innovations.         General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto affirmed that companies, as part of their business governance, needed a concerted vision in order to increase their creativity and innovations.         "Creativity and innovations in business governance can double business expansion and company profits," Sulisto noted in a written statement on Monday.          Therefore, Kadin has suggested that the subsequent policies to be issued by the government should support the positive momentum of the rupiah, which has been appreciating over the past few days against the greenback.        "The positive momentum needs to be supported by the government's correct and accurate policies," Deputy Chairman of Kadin for banking and financial affairs Rosan Perkasa Roeslani noted.          He expressed hope that the positive indication, in the form of the appreciation of the rupiah and the stock composite index values over the past few days, would be the early signs of the improving Indonesian economy.

CENTRAL BANK HOPES RUPIAH TO APPRECIATE IN 2014

By Andi Abdussalam
Jakarta, Dec 30 (Antara) - The Indonesian central bank, Bank Indonesia (BI), hopes that the rupiah, which has depreciated over the past four months, will appreciate in the first semester or at the beginning of the second semester of 2014.          The rupiah has been weakening since September, this year, when it tumbled to Rp10 thousand per US$1, from below the Rp9.7 thousand level, in May and July.  This month, the rupiah has been hovering around Rp12 thousand per US dollar.          On Friday evening, the rupiah exchange rate against the Greenback, weakened 73 points at the interbank market, from Rp12,201 to Rp12,274.       "The dollar bounced back again following strong data that the US economy is recovering and strengthened its market perspective that the Federal Reserve will continue its tapering-off program," stated Monex Investindo Futures's Head of Research, Ariston Tjendra, on Friday.          According to Tjendra, the current US economy is strong enough to sustain the appreciated US dollar until the year-end, as well as to convince the investors that the Federal Reserve will continue its tapering off initiative.          "However, the currency market tends to flatten on presumptions that no major event will take place during the last week of 2013," he noted.          On Monday (Dec.30), the rupiah value was unchanged against the US dollar in the opening trade, analysts remarked.      The rupiah traded at 12,274 per US dollar in interbank transactions, during the first minute of trading on Monday, chief researcher of Trust Securities, Reza Priyambada, claimed.

RUPIAH DEPRECIATION EXPECTED TO BOOST EXPORTS

By Andi Abdussalam

Jakarta, July 19 (Antara) - The depreciation of the rupiah of late which has exceeded Rp10,000 against the Greenback is expected to reduce imports and boost exports amid pressures on Indonesia's capital balance that affects current account transactions.          Finance Minister Chatib Basri said pressures on capital balance would still be taking place and it would overall affect the current transaction deficit, yet the government was making its efforts to reduce pressures on balance of current transactions.          One of the efforts made by the government in reducing the deficit of the current transaction is to reduce its fuel imports and encourage exports.          "What needs to be watched out is the capital balance. But we have settled the problem of fuels and oil and gas imports have been declining. The next step that should be made  is to boost exports," the minister said.          The rupiah exchange value on Friday morning reached Rp10,140, weakening from Rp10,060 at the closing on Thursday.          The finance minister said that the rupiah depreciation had been taking place in  the past several months due to pressures on  the capital balance.  "This happens after the Fed governor, Ben Bernanke, says he is going to scaleback its quantitative easing policy. So the main issue is more on capital balance," Chatib said.

EXPORTS WEAKENED AS RUPIAH APPRECIATING

By Andi Abdussalam

Jakarta, Sept 22 (ANTARA) -  The rupiah's appreciation since last week  strengthening to below Rp8,950 against the green-back at the Jakarta interbank spot market on Wednesday evening has caused  concern among exporters .          Head of the Financial Division of PT Bank OCBC NISP, Suriyanto Chang said on Wednesday that the rupiah continued to appreciate and edge closer to a level below Rp8,950 per US dollar. He said the appreciation worried exporters because it could cause a problem for their products in the export market.          On Wednesday, the rupiah in the Jakarta interbank spot market traded at a range of Rp8,960-Rp8,970 against the US dollar but at the closing in the evening it strengthened further and rose to a level below Rp8,850 over active rupiah buy-ups.          Suriyanto Chang said that the rupiah inclined to appreciating due to strong incoming flow of foreign funds into the domestic market.          The rupiah on Wednesday evening rose 17 points to Rp8,943-Rp9,953 per US dollars compared to the previous day's closing at Rp8,960-Rp8,970.          Retail Banking Director of PT Bank Mega Kostaman Thayib said meanwhile that market players continued to purchase the rupiah so that it continue to appreciate and reached a level below the Rp8,950 per US dollar.          Seeing the strengthening trend of  the rupiah against the green-back,  financial market analyst Irfan Kurniawan predicted that the rupiah value would continue to remain at a stable range of Rp8,950-Rp9,000 until the year-end.          "The rupiah value at the Rp8,950 - Rp9,000 is an ideal one because it would still enable both exporters and importers to carry out their activities well, though exports at present are showing a downward trend," Irfan said on Wednesday.           Irfan who is also financial analyst of PT First Asia Capital said the value of rupiah at Rp8,945-Rp8,955 range was not too far from the Rp9,000 range. That is why the government still lets the rupiah  fluctuate within that range.          He said that the government actually wanted the rupiah value to be above the Rp9,000 level but due to the decline of its exports it let the rupiah stay below the Rp9,000 level. The present level of rupiah value only had a thin margin with the Rp9,000 level  and it did not pose too much problem to the export activities.          Exporters still could carry out their activities even if the rupiah is below Rp9,000 per US dollar. Exporters would complain and ask the government to stop the strengthening of the country's currency if it reached the Rp8,700 - Rp8,800 level.          Irfan said a value of  rupiah at that level would reduce exporters' profit as it would reduce their competitiveness in the world market.          Last week, when the rupiah appreciated and almost reached Rp8,800 per US dollar the government was forced to consult Bank Indonesia (BI/the central bank) to overcome the rupiah appreciation. The government even asked BI to maintain the rupiah value at the Rp9,000 level.          But the strong inflow of foreign capital to the domestic market posed difficulties to the central bank to carry  out an intervention to off set the rupiah and rekindle its value back to the Rp9,000 level.          "We predict that the rupiah would remain below the Rp9,000 level until the end of the year," Irfan said.         The rupiah began to show an upward trend when it edged closer to Rp8,950 per dollar at the Jakarta interbank spot market late Tuesday on active rupiah buy-ups last week.          The rupiah traded at Rp8,955-Rp8,965 per dollar compared to Rp8,995-Rp9,005 per dollar earlier at the weekend, up 40 points.          Finan Corpindo Nusa President Director Edwin Sinaga said a number of internal and external positive sentiments had raised demand for the rupiah, causing the Indonesian currency to strengthen significantly against the greenback.          One of the positive sentiments was the fact that Indonesia's global competitiveness rating rose by 10 notches to 44th among 132 countries surveyed, he said.          He said the rupiah was expected to further strengthen to a level of Rp8,900 per dollar due to the strong positive sentiments.          "We are optimistic if Bank Indonesia (BI) does not intervene in the market the rupiah will edge closer to a level of Rp8,900 per dollar," he said last week. He said the rupiah still had a great chance to further appreciate particularly because of the strengthening of Wall Street, fueled by the dollar's weakening against euro and yen.          In response to the appreciation,  BI Governor Darmin Nasution said that the present rupiah exchange rate was still competitive for the national economy compared to  those of  the currencies of neighboring countries.          "The argument that our competitiveness has declined because of the rupiah's appreciation is not valid  because the currencies of other countries have appreciated even more," he said.          He said until Friday last week the exchange rate of the rupiah was Rp8,980 against the US dollar while its yearly average is still at Rp9,130 or it has only appreciated by 4.8 percent since early this year.          "That is the same as that of Philippine Peso but is smaller than Thai Baht which is 7 percent and Malaysian ringgit 8 percent," he said.           Darmin admitted BI had bought US dollars to make the rupiah remain stable and its volatility not to big. The view of some ministers that the rupiah was no longer competitive for trade was not correct because the rupiah was not alone.          Regarding the assumption for the rupiah exchange rate in the 2011 draft budget which is set at Rp9,300 per US dollar Darmin said that  the government did not wish to weaken the rupiah but based upon the results of calculation made along with BI, the high inflation next year could lower the value of the rupiah.          "The fact is if the capital from abroad keeps flowing in certainly the rupiah will not be able to stand at that level (Rp9,300 against the US dollar)," he said.          The huge flow of foreign capital into Indonesia coupled by the depreciation of the US dollar against other currencies recently have made the rupiah value to appreciate to Rp8,900.           Several ministers however felt that the appreciation was too high and therefore could disrupt domestic industrial exports. ***2*** (T.A014/A/HAJM/19:37/a014) 22-09-2010 19:44:0