Waning rupiah not triggered by Fed tapering: BI

JAKARTA. Bank Indonesia (BI) Governor Agus Martowardojo claimed that the weakening of rupiah, which hit Rp 12,191 per US dollar on Thursday, the lowest level for five years, was not triggered by the US Federal Reserve's statement that it would begin tapering massive US stimulus in January.

“Tapering was anticipated […] it is only US$ 10 billion. The interest rate [in the US] has also been maintained at a relatively low level. So, basically, we consider tapering positive,” Agus told reporters at the State Palace on Thursday.

“The rupiah slightly weakened because purchases of foreign currencies usually increase around the year end. After we pass this period, [the rupiah] will be normal again,” he added.

Agus said that the response from the global market was good. “But still, we have to keep up our monetary and fiscal programs, as well as our real sectors to make our domestic situation even better,” he said.

Previously, BI spokesperson Difi A. Johansyah said the Fed’s tapering confirmation was positive in providing certainty.

“We can see that the global financial market’s reaction to the tapering policy is relatively stable because they are already ‘priced-in’. This means the looming uncertainty that shadowed the global economy has gone,” he said. (Bagus BT Saragih)