JAKARTA (Yosefardi) – The rupiah continued weakening against the US Dollar as it reached Rp11,885 level Wednesday (Nov 27), the lowest level since March 2009.
Agus Martowardojo, governor of Bank Indonesia, said the rupiah’s weakening reflects the current national economic fundamental. Global economic issues is also a factor from external side.
The weakening rupiah would impact on the payment of foreign matured debts inlcuding its interests payment. In domestic fron, demand for dollar increases due to debts and interests payment as well as the repatriation of profits or return on investment.
Finance minister Chatib Basri said the rupiah now finds its new equilibrium. Since 2009, the developing countries enjoyed the positive impact from The Fed’s stimulus which prompted the incoming of foreign funds. Now, The Fed is evaluating its stimulus policy.
The government of Indonesia needs to protect the rupiah from further weakening against the US Dollar by reducing import of raw materials while boosting export of products.