JAKARTA: Indonesian President Joko Widodo has shrugged off concerns about the rupiah’s recent bout of weakness, signalling there may be little political pressure for the central bank to raise interest rates next week.
The rupiah at 16,200 to 16,300 against the US dollar – its trading range for much of June – is “still in a good position,” Jokowi, as the president is known, told reporters on Monday.
The rupiah’s depreciation is in line with other currencies, as “all countries are experiencing the same thing, pressured by the US dollar,” he said.
The president’s comments are in sharp contrast to Indonesia’s stance in April, when all of government was put on alert to help stem a currency rout.
State firms were instructed to hold off from making large dollar purchases, while exporters were urged to repatriate their foreign currency earnings.
Bank Indonesia also delivered a shock rate hike in April, taking the benchmark to 6.25%. — Bloomberg