BI Deputy Governor Hartadi A Sarwono said here on Sunday that the rupiah would strengthen again after the various policies carried out by BI were able to reduce pressures on the rupiah.
"BI is committed to remaining in the market, including carrying out direct interventions such as buying state securities (SBN) through bilateral open market operations (OPT) both in the rupiah auction or in the foreign exchange one," he said.
Hartadi said that last week`s financial turbulence was generated by fear of the worsening in the handling of the European crisis which led to short-term foreign investors in the country to leave for a profit taking.
However, strategic investors maintain their investment because the future prospect of investment in Indonesia remains prospective.
"We have even taken notice the entry into the Indonesian financial market of new strategic investors," he said.
"The foreign exchange reserves declined by over two billion dollars from 124.6 billion dollars to 122 billion dollars last week," he said.
That was why many short-term investors last week took a profit taking action and caused the composite stock index at the Jakarta Stocks Exchange (BEI) to fall to the 3,750 point position, though on Friday it had returned to the 3,835 point.
In the meantime, the rupiah exchange rate which was previously stable at Rp8,500, weakened to Rp8,750 per US dollar on Friday.(*)
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Editor: Jafar M Sidik
Copyright © ANTARA 2011
