BI Predicts Rupiah Appreciation ahead of Elections

Desi Angriani    •    29 Januari 2019 16:55 WIB
indonesian economy (en)
BI Predicts Rupiah Appreciation ahead of Elections
Bank Indonesia Governor Perry Warjiyo (Photo:BI)

Jakarta: Bank Indonesia (BI) Governor Perry Warjiyo believes that the rupiah will appreciate ahead of the 2019 simultaneous general and presidential elections.

"The currency rate will remain stable. It will appreaciate ahead of elections," Perry told reporters on Tuesday, January 29, 2019.

"The global economy is still recovering. But it is more stable," he added.

Indonesia will hold the first ever simultaneous general and presidential elections in April 17. Voters will elect the president and lawmakers on the same day. 

In order to run for presidency, incumbent President Joko "Jokowi" Widodo is endorsed by PDIP, Golkar Party, PKB, PPP, NasDem Party, Hanura Party, PKPI, PBB, Perindo Party and PSI. In the meantime, key opposition leader Prabowo Subianto is supporrted by Gerindra Party, Democratic Party, PAN, PKS and Berkarya Party.

Bank Indonesia (BI) maintained its 7-Day Reverse Repo Rate at 6.00% this month. It also maintained the Deposit Facility and Lending Facility rates at 5.25% and 6.75% respectively.
According to a written statement, the decision is consistent with ongoing efforts to reduce the current account deficit to a manageable threshold. In addition, the central bank is committed to maintain the attractiveness of domestic financial assets.