This condition of good economic fundamentals is a good platform for the rupiah to be able to compete with the US dollar
Jakarta (Rifyu.com) – The rupiah exchange rate (exchange rate) that was transacted between banks in Jakarta at the end of trading on Friday strengthened, supported by the release of Indonesia’s first quarter 2023 economic data which recorded growth of 5.03 percent on an annual basis (year-on-year/yoy).
The rupiah on Friday closed increased by seven points or 0.05 percent to the position of IDR 14,678 per US dollar compared to the position at the previous closing of IDR 14,685 per US dollar.
“The condition of good economic fundamentals is a good platform for the rupiah to be able to compete with the US dollar,” said ICDX analyst Revandra Aritama when contacted by Rifyu.com in Jakarta, Friday.
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Revandra said that Indonesia’s economic growth, which was recorded at 5.03 percent in the first quarter of 2023, was higher than forecast, which meant that the Indonesian economy was growing well and the domestic economic conditions were stable.
According to the Central Statistics Agency (BPS), household consumption will still be the main contributor to the economy in the first quarter of 2023.
Apart from household consumption, net exports and Gross Fixed Capital Formation (PMTB) were the other highest contributors with a respective share of 2.1 percent and 0.68 percent. Then, followed by government consumption of 0.22 percent and other components minus 0.41 percent.
Meanwhile, from external factors, Revandra said the central bank of the United States (US) or The Fed on Wednesday (3/5/2023) decided to raise interest rates by 25 basis points. The decision was taken because the Fed considered that inflation was still too high.
Fed Chair Jerome Powell also said the Fed is not planning to soften any time soon because for inflation to come down, it will take time.
On the other hand, the banking crisis that hit the US continues, after the Silicon Valley Bank incident, most recently it was reported that First Republic Bank and Pacwest Bancorp were also reportedly experiencing a crisis.
“This crisis has raised doubts about the US economy which is threatened with further pressure. This is reflected in the US dollar index which did not strengthen after the announcement of an increase in interest rates,” he said.
Investors doubt whether the US can safely emerge from the crisis in the near future. This condition made the US dollar fail to put pressure on other currencies, including the rupiah which has managed to stabilize and has not experienced significant pressure.
In the morning, the rupiah opened up to Rp. 14,673 per US dollar. Throughout the day the rupiah moved in the range of IDR 14,649 per US dollar to IDR 14,688 per US dollar.
Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Friday weakened to the position of IDR 14,674 per US dollar compared to the previous position of IDR 14,632 per US dollar.
Also read: Friday’s rupiah rose to IDR 14,673
Reporter: Martha Herlinawati Simanjuntak
Editor: Ahmad Wijaya
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