30-1-2024 (JAKARTA) Indonesia’s Finance Minister Sri Mulyani Indrawati has expressed confidence that the country’s currency, the rupiah, will remain stable and may even strengthen in the coming months. As the chair of Indonesia’s Financial System Stability Committee, Indrawati stated that the rupiah exchange rate is expected to be unaffected by any significant pressure from the US dollar.
Indrawati’s remarks come at a time when the rupiah has experienced some weakening, reaching its lowest level in over two months at 15,808 against the US dollar. This decline in confidence was partly fueled by speculation that Minister Indrawati might resign ahead of the upcoming presidential election on February 14. Such rumors raised concerns about the country’s fiscal outlook.
However, the Finance Ministry promptly responded to the rumors, affirming that Indrawati continues to fulfill her responsibilities in managing state finances. In addition, Bank Indonesia’s Governor Perry Warjiyo, speaking at the same press conference, expressed optimism that the rupiah would strengthen in the second half of 2024.
In terms of Indonesia’s economic growth, Minister Indrawati predicts that the country’s Gross Domestic Product (GDP) for the previous year will be around 5 percent. This projection indicates a consistent growth trend for the Indonesian economy, which has been resilient despite the challenges posed by the global pandemic.
