Rupiah's drop still safe for real, financial sectors: Jokowi

Rupiah's drop still safe for real, financial sectors: Jokowi

President Joko Widodo delivers a press statement after opening the Investor's Daily Summit 2023 in Jakarta on Tuesday (October 24, 2023). (ANTARA/Indra Arief Pribadi)

If we see the percentage of the depreciation of our currency, it’s still safe.
Jakarta (ANTARA) - President Joko Widodo (Jokowi) stated here on Tuesday that the recent rupiah depreciation against the US dollar has yet to affect the domestic real and financial sectors.

"If we see the percentage of the depreciation of our currency, it is still safe. Safe for the real sector, safe for the financial sector, as well as for inflation," Jokowi noted in his remarks at the opening of the 2023 Investor's Daily Summit in Jakarta.

The country's economic growth is still above five percent amid weakening global economic conditions due to the US dollar appreciation, among others.

The president has received a report from the Financial System Stability Committee (KSSK) regarding latest developments in the economic situation.

The committee members comprised Finance Minister Sri Mulyani, Bank Indonesia Governor Perry Warjiyo, Financial Services Authority (OJK) Chairman Mahendra Siregar, and Deposit Insurance Corporation (LPS) Chairman Purbaya Yudhi Sadewa.

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According to the report, the rupiah exchange rate is still safe for the real and financial sectors, while bank credit growth stood at 8.69 percent.

"Yesterday I met with the BI Governor and OJK. I asked them about the level of credit growth. The growth is still at 8.69 percent, and this is a pretty good figure," Jokowi remarked.

The president assessed that the U.S. "higher for longer" approach to its interest rates has further complicated the world's economic problems.

This policy has made several investors to withdraw their capital and move it to the United States.

"The policy of increasing interest rates for a long time by the U.S. is also making things even more complicated, especially for developing countries. The capital outflow is all running back to the US. It is making things even more complicated for all of us," he noted.

On Monday, the rupiah closed lower by 61 points, or 0.38 percent, to Rp15,933 against the US dollar from Rp15,873 earlier.

However, the currency, on Tuesday morning, strengthened by 0.35 percent, or 55 points, to trade at Rp15,878 against the greenback.

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