The government`s plan to raise the prices of subsidized oil fuels contributed to rupiah stability with expectation that imports of oil products would decline, economist Lana Soelistianingsih said.Jakarta (ANTARA News) - The Indonesian currency rupiah lost slightly in value against the US dollar on Thursday morning to follow the regional trend, economists said.
The rupiah traded at 9,722 to the dollar in inter-bank transactions weakening slightly from 9,720 in Wednesday`s close.
Rupiah was relatively stable amid the absence of significant sentiment on the domestic market, Samuel Sekuritas`s economist Lana Soelistianingsih said.
Falling value of region currencies held rupiah from rising from its present position, Lana said
She said the government`s plan to raise the prices of subsidized oil fuels contributed to rupiah stability with expectation that imports of oil products would decline.
"An increase in the price of subsidized oil fuels will also contribute to improving the health of the state budget in 2013," she said.
The budget deficit could reach 3.8 percent of the GDP without an increase in the prices as oil fuel consumption is expected to exceed the target of 46 million kiloliters, she added.
An increase in budget is also feared to increase the country`s current account deficit, she said.
"The twin deficit" could change the perception of Indonesian economic fundamental, which is currently is still relatively good, she said.
She noted that foreign investment in state bonds is still on the increase .
In the fourth week of April, foreign investment in state bonds rose Rp13.91 trillion to Rp294.66 trillion.
In the stock market net buying by foreign investors rose US$40.9 million, she said. (*)
Editor: Heru Purwanto
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