• USD/IDR Price News: Indonesian Rupiah holds steady near 15,740 on BI comments

Market news

30 November 2022

USD/IDR Price News: Indonesian Rupiah holds steady near 15,740 on BI comments

Perry Warjiyo, Bank Indonesia (BI) Governor, said on Wednesday that the Rupiah is expected to strengthen in 2023 supported by good economic fundamentals.

Key quotes

Coordination between fiscal, monetary authorities need to be continued.

Global supply chain is still hampered, global investor perspective still negative.

We need to be aware of risk of global econ slowdown, high interest rates, high energy and food prices.

Amid global turmoil, we need to strengthen synergy and coordination.

2023 GDP growth seen at 4.5% to 5.3%.

2024 GDP growth seen at 4.7% to 5.5%.

Inflation remain high but will return to 2%-4% target in 2023, and 1.5%-3.5% in 2024.

2023 and 2024 loan growth seen at 10%-12%.

2023 energy subsidies will allow c.bank to raise interest rates in a measured way.

C.bank, financial authorities independence will be maintained.

Bank Indonesia monetary policy to remain pro-stability.

Other c.bank tools will be directed to support economic growth.

We will optimize interest rates, exchange rate, liquidity policies.

BI to ensure core inflation steered toward target range by first-half 2023.

BI will remain in the markets to conduct triple intervention.

BI to ensure bond yield remain attractive while avoiding excessive rise.

BI's macroprudential policy will remain loose.

BI launches white paper digital rupiah today.

2022 C/A balance seen at +0.4% to +1.2% of GDP, 2023 C/A balance seen at +0.4% to -0.4% of GDP.

Market reaction

Despite upbeat comments from the central bank Governor, USD/IDR is trading listlessly at around 15,740, almost unchanged on the day.

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