"This is more on external factor," Finance Minister Bambang Brodjonegoro said.Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro attributed the volatility of rupiah in the past several weeks to financial market players still worrying about the global economic condition.
"This is more on external factor," Bambang said here on Tuesday.
He said the Chinese economy is slowing down and the slowdown of the worlds second largest economy would have its impact on Indonesias export performance.
Meanwhile improvement of the US economic condition would likely lead to raising its benchmark interest rate earlier, he added.
"That is what the market is. We could not control the market as we do other," he said.
The condition may force the government to reevaluate the target for rupiah exchange rate against the US dollar set in the 2015 state budget to be proposed in January, he said.
Earlier the government has set the rupiah exchange rate at 11,900 per US dollar in the 2015 state budget, and Bambang has once indicated the target would be maintained as the US central Bank plans to raise its benchmark interest rate in mid 2015.
"In principle, we would look for the most logical forecast," he said.
The rupiah gained against the US dollar in interbank transaction on Tuesday morning. The national currency traded at the level of 12,335 per dollar gaining from earlier level of 12,355 per dollar.
Chief researcher of the Woori Korindo Securities Indonesia Reza Priyambada said intervention by Bank Indonesia might have been attributable to the rupiah gain.
A new statement by the World Bank revising down its prediction for the countrys economic growth served a negative sentiment for rupiah.
The World Bank predicted that the countrys economy would grow only 5.2 percent in 2015 down from earlier prediction of 5.5 percent.
"The condition would have negative impact on rupiah fundamental and prompt the market players to invest safely in dollar.(*)
Editor: Heru Purwanto
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