Rupiah may continue its depreciation next year: BI

JAKARTA. Bank Indonesia governor Agus Martowardojo says that the rupiah is likely to continue its depreciation next year since the US dollar is getting stronger in the market.

According to the bank’s real-time data, the rupiah is currently traded at Rp 12,347 per US dollar, down from the previous trade of Rp 12,352 per US dollar.

Agus said that the depreciation of the domestic currency was mainly triggered by the appreciation of the US dollar and the country’s trade-balance deficit.

“We are hoping that we can record more surpluses in the future so that the rupiah trade will be improved,” he said in Jakarta on Tuesday as quoted by kontan.co.id.

Central Statistics Agency (BPS) data showed that the country’s trade balance enjoyed a US$23.3 million surplus in October 2014 after suffering deficits in the previous months.

The country even suffered a deficit of $270.3 million in September this year, the largest deficit that Indonesia recorded throughout 2014.

He also wants the central government to immediately upgrade the nation’s infrastructure because it plays a crucial role in developing the economy.

The central bank recently increased its benchmark interest rate by 25 basis points to 7.75 percent in an attempt to help stabilize the rupiah.