The private consumption and government investment is expected to support the domestic economy."Jakarta (ANTARA News) - The Indonesian rupiah rose 164 points to close at Rp13,231 per US dollar in the Jakarta interbank spot market on Thursday evening, compared with the previous close of Rp13,395 per US dollar.
The rupiah returned to stay in the positive area in the local foreign currency market ahead of the governments announcement of domestic economic data on April 1, money market observer Rully Nova of Bank Himpunan Saudara said here on Thursday.
The inflation rate, which the Central Statistics Agency (BPS) will announce on April 1, will become one of the issues that draw attention from money market players, he said.
"As the inflation rate can be kept under control, coupled with the stable domestic economy, Bank Indonesia has the potential to further lower its benchmark interest rate known as BI Rate, he said.
Rully added that the domestic economy in the first quarter of this year also has the potential to perform better than in the previous period, owing to the governments proactive steps to safeguard the national economy by issuing a series of deregulation policies.
"The private consumption and government investment is expected to support the domestic economy. The situation will eventually keep the fluctuation of rupiah within stable range and with a tendency for strengthening," he said.
Mandiri Sekuritas Economist, Leo Rinaldy, predicted that the consumer price index in March 2016 will go up by 0.25 percent, indicating that the inflation rate will increase to 4.51 percent year-on-year. However, the inflation rate will remain controllable.
(Reported by Zubi Mahrofi/Uu.INE/KR-BSR/F001)
Editor: Priyambodo RH
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