"The rupiah exchange rate level is fundamentally undervalued. So, it has the potential to continue to strengthen and support economic recovery," BI a Governor Perry Warjiyo said on Tuesday, May 19, 2020 in Jakarta.
The rupiah is still showing a rising trend because uncertainty in global financial markets has begun to subside and confidence in Indonesia's economic conditions has been maintained, Perry explained.
However, the strengthening of the rupiah is not only supported by the inflow of foreign capital into Indonesia, but also the availability of a large foreign exchange supply from domestic players, he added.
He said the rupiah has appreciated in April and May this year. As of May 18, 2020, the rupiah strengthened 5.1 percent on average and 0.17 percent point-to-point, compared to the end of April.
"However, the rupiah still recorded a depreciation of around 6.52 percent compared to the end of 2019 due to deep depreciation in March, 2020," Perry said.
To support the effectiveness of exchange rate policies, BI is continuing to optimize monetary operations to ensure the operation of market mechanisms and the availability of liquidity both in the money market and the foreign exchange market.
Earlier, BI had projected that the rupiah, at the end of 2020, could reach the range of Rp. 15,000 per US dollar through various monetary operations. (antara)