Indonesia Rupiah Remains Weak Despite Lowered Fuel Price

Liputan6.com, Jakarta Indonesian rupiah remains weak despite the increase of oil fuel price by 13%. Rupiah exchange rate is reported to have been going in a slow pace showing a weakening of the currency with almost Rp 12,600 per US$ 1.

Bloomberg Foreign Exchange Data on Monday (19/01/2015) shows the rupiah exchange rate became weak by 0,09% resulting with Rp 12,601 equivalent to US$ 1 on the market at approximately 10.50 am Jakarta time. This is a major setback for the country’s endeavour towards improving its rate. At the preliminary session, rupiah exchange rate edged up to Rp 12,579 per 1 US dollar, a much more desirable movement as compared to the latter. 

Progressing through the day, the Indonesian rupiah continues to fluctuate at around Rp 12.579 per USD to 12,624 per USD.

Meanwhile, the rate from Jakarta Interbank Spot Dollar Rate (JISDOR) Bank Indonesia recorded the Indonesian Rupiah exchange weakens to Rp 12,612 per USD. Rupiah fell down 19 points from Rp 12,592 in previous trades.

An economist from PT Samuel Sekuritas Indonesia, Rangga Cipta explains how the decision made by President Joko ‘Jokowi’ Widodo to cut down the price of fuel (BBM) last week did not affect the continually weakening rupiah. Thus, the optimism has to be put on hold before future prediction involving the strengthening of rupiah can be made official.

"Up until today, rupiah is still weak. Though the country is encouraged to stay positive, it may be a hard case for the issue of weakening rupiah," he said.

Thus far, the impact of continually strengthened USD can be felt within the global market. US Dollar is significantly strengthened. This may be detrimental to many countries, including Indonesia. (Akp/Ein)