TEMPO.CO, Jakarta - International Monetary Fund (IMF) director Christine Lagarde reminded the Indonesian government about the global uncertainties sparked by the Federal Reserve's plan to normalize its benchmark interest rate (Fed Fund Rate). One of the impacts that affected Indonesia is the fluctuation of the rupiah.
On yesterday's currency trade, the rupiah closed at Rp13,650 per US dollar.
Read also: IMF Lauds Indonesia`s Economy
"Policymakers should remain wary of the possible impacts on financial stability, especially the volatile projections of capital outflows," Lagarde said in Jakarta, Tuesday, Feb. 27.
Nevertheless, Lagarde said Indonesia's economic fundamentals are now much stronger, enabling the state to curb turmoil effects, keep inflation at bay, and stabilize the exchange rate.
Bank Indonesia (BI) Governor Agus D.W. Martowardojo said the rupiah fluctuation against the US dollar is expected to continue until the third week of March. Agus ensures that the central bank will not let the rupiah weaken too deep.
Read also: IMF Christine Lagarde Applauds Indonesia`s Gojek
"We will keep the rupiah at a fundamental level and always maintain the availability of the dollar," he said.
BI's records showed that as of February 21, the rupiah has depreciated by 0.84 percent, even falling to a low 13,700 per US dollar.
GHOIDA RAHMAH | PAJAR PEBRIANTO
