BI Sets Rupiah Exchange Rate Assumption at Rp. 15,070 per US Dollar

Rupiah and US Dollar

Bank Indonesia (BI), together with Commission XI of the Indonesian House of Representatives, established the rupiah exchange rate assumption at Rp. 15,070 per US dollar. This rupiah assumption will be a reference for BI to carry out its operations next year.

This is stated in the 2023 Bank Indonesia Annual Draft Budget (RATBI).

This BI assumption figure is higher than the rupiah exchange rate assumption at Rp14,800.00/US$, which mainly takes into account the still high uncertainty of the global economic prospects.

Previously, the Governor of Bank Indonesia (BI) Perry Warjiyo stated that he was ready to protect the rupiah exchange rate from the impact of the United States (US) dollar, which has been so powerful in recent times. Some steps have been carried out.

“Our exchange rate this year is really trying to stabilize the exchange rate,” said the Governor of BI.

Perry explained that this caused foreign exchange reserves to fall from US$ 139 billion to around US$ 130 billion. He said BI was trying to prevent foreign exchange reserves from falling again.

Referring to Refinitiv data, at the opening of trading the rupiah appreciated 0.1% to IDR 15,680/US$. Unfortunately, the rupiah reversed direction and slightly corrected 0.03% to IDR 15,700/US$ at 11:00 WIB.

Meanwhile, the US dollar index, which measures the performance of the greenback against six other currencies, was observed to have weakened by 0.12% to 107.09.

In the 2023 RATBI assumption, BI also determines economic growth to be lower than the 2023 State Budget assumption, which is 4.37%. Meanwhile, inflation was set at 3.61%.