The rupiah's exchange rate against the US dollar in 2022 is projected to range from Rp13,900 to Rp14,800 per US dollar.
Jakarta (ANTARA) - The government, the central bank, and the House of Representatives (DPR) have agreed to revise the US dollar-Indonesian rupiah exchange rate target for 2022 from Rp13,900-Rp15,000 to Rp13,900-Rp14,800 per US dollar.

The change is stipulated in the macro economic policy and fiscal policy principles (KEM PPKP).

"The rupiah's exchange rate against the US dollar in 2022 is projected to range from Rp13,900 to Rp14,800 per US dollar," member of the DPR Budget Committee, Hamka Baco Kady, said during a working meeting of the committee in Jakarta on Wednesday.

Several factors, such as global economic recovery and trade, would still have an impact on the rupiah's exchange rate against the US dollar, he noted.

The other global factors would be uncertainty about the global financial market, the Fed's monetary policy, and foreign investors' appetite in the domestic financial market, he added.

Meanwhile, domestic factors that would affect the rupiah's exchange rate would be sustainable economic recovery efforts and structural reforms that are expected to boost investor confidence so that the flow of foreign investment to the country remains controllable, he said.

Financial sector reform must also be implemented to expedite the growth of the financial sector, Kady advised.

The government should also continue to improve the current account deficit in collaboration with various stakeholders to accelerate the improvement of the nation’s export performance, he said.

He then urged the government and the monetary authority to make optimum use of the present momentum, including the appreciation in the rupiah's exchange rate and net inflows of foreign capital.

"The rising foreign exchange reserves can maintain the sustainable stability of the rupiah's exchange rate, in accordance with its fundamental value," he observed.

The government had earlier predicted the rupiah's exchange rate would remain in the range of Rp13,900-Rp15,000 per US dollar under the KEM PPKP in the budget year 2022.

Related news: Rupiah strengthens following release of foreign exchange reserves data
Related news: Decline in US bond yield bolsters rupiah

Translator: Astrid Faidlatul H/Suharto
Editor: Rahmad Nasution
Copyright © ANTARA 2021