Government-BI Continues to Observe Rupiah Movement

INDUSTRY.co.id - Jakarta - The government together with Bank Indonesia will keep a close watch on the movement of the rupiah against the US dollar, which is still affected by external pressures due to the normalization of monetary policy in the US.

"We and BI continue to observe developments that occur with the US dollar, especially those that will continue to experience movement in the context of normalization of policy in the US," said Finance Minister Sri Mulyani Indrawati in Jakarta, Friday (18/05/2018)

To curb the turmoil, Sri Mulyani ensured the government will keep the economic foundations of Indonesia from the state budget to trust the market participants are not eroded by global pressure that is also caused by geopolitical developments.

"The results and performance until May show the state budget both from the revenue side of taxation and PNBP increased very significantly and state spending is maintained and deficit continues to be maintained in accordance with the Law on State Budget," he said.

The former Managing Director of the World Bank also believes the central bank has had a monetary policy mix prepared to maintain economic stability.

"We will jointly safeguard the Indonesian economy because the uncertainty stemming from the US 'policy', whether economic or geopolitical, will affect oil prices, global interest rates and currency," he said.

Through this coordination effort, Sri Mulyani hopes that the national economic foundation will be stronger and the development performance will not be disturbed, despite the current exchange rate fluctuation in the financial market.

Previously, the rupiah exchange rate interbank in Jakarta, Friday afternoon moved down by 99 points to Rp14,144 compared to the previous position of Rp14.045 per US dollar.