President Director of PT Garuda Berjangka, Ibrahim Assuaibi, in Jakarta on Monday, said the decline in oil prices today positively impacted the move of the rupiah.
"The decline in oil prices certainly makes the cost of importing these commodities cheaper. This will reduce the pressure on the trade balance, and later spread to improvements in the current account. With a stronger current account, although still in deficit, the rupiah has a strong foundation so it is not easily tossed around, "Ibrahim said.
According to Ibrahim, the decline in oil prices is a blessing. Indonesia is a net oil importer country, and it must inevitably import oil to meet domestic needs because of inadequate domestic production.
OPEC and other oil producing countries such as Russia are scheduled to hold a meeting on April 17 and 18, 2019, to determine production policies. Previously, OPEC Plus had implemented production cuts of up to 1.2 million barrels per day, and the next meeting would determine whether this policy would continue or not.
"Indonesia's trade balance for the period of February 2019 surprisingly recorded a surplus of US$330 million," Ibrahim said.
The exchange rate of the rupiah opened at Rp14,238 per US dollar in the morning. Throughout the day, the rupiah moved in the range of Rp14,223 per US dollar to Rp14,245 per US dollar.
Meanwhile, Bank Indonesia's mid exchange rate on Monday showed that the rupiah strengthened to Rp14,242 per US dollar compared to the previous day at Rp14,310 per US dollar.