By: Arifin *)
Trend strengthening of rupiah against the US dollar (US) that happened in last few days, according to Chief Representative of Bank Indonesia South Kalimantan Province, Harymurthy Gunawan, this condition happened because of some factor. One of them is optimism of market participants related to the government’s policy package, cited Banjarmasinpost.co.id.
The currency of Rupiah against US Dollar was closing little bit strong, Monday afternoon (12/10). Rupiah noted increase 4 point or 0.03 percent to 13.408 per US Dollar.
It is not slip from internal or domestic factors. Harymurthy Gunawan said market participants give greet optimism to the government plan to release the Economic policy Volume III. This policy is expected to strength more stability economic in domestic sphere.
The rate Index of Composite Stock Price (IHSG) still showing the gains of stock trading earlier this week. Currency of Rupiah against the US dollar is still in the range of 13,400 and foreign investors’ buying support IHSG.
Analyst of PT Asjaya Indosurya Securities, William Suryawijaya said IHSG gained sustained by foreign capital flow, makes IHSG still continuing rising trend in short period. This thing because of supported by domestic and external sentiment. Stock trading transactions quite busy are also supported by the confidence of market participants on measures that have been taken by government to push economic growth. This condition made market participants take action to buy in stock market. “Now days, the market participants still waiting the realization after government released the package of economic policy,” sadi William, quoted liputan6.com.
Base on BCA Economists, David Sumual, there are some factor that could make rupiah strengthened, started from foreign loans until Government policy package that released by President Joko Widodo, as reported beritasatu.com. Three package policy of government that released every week also have positive greeting from market participant. This is also contributed to the positive sentiment to the strengthening of the rupiah.
In addition, Head of Research Archipelago Asset Management, AG Pahlevi said the price of shares in the Indonesian Stock Exchange (BEI) which is already low also encourage foreign investors to come back invest in Indonesia.
As quoted from the press release of Public Relations Coordinating Ministry of Economy, the third stage of the economic policy package includes three areas of policy: First of all, a decrease in electricity rates and fuel prices as well as gas. Second, the expansion of business credit receiver (KUR). Thirdly, the simplification of permit land for investment activities.
*) The Author is Jakarta Regional Contributor
