Indonesian Rupiah Slightly Strengthens Against US Dollar on Stimulus Economic Package

Jakarta, 21 Rajab 1437/30 April 2016 (MINA) – The Indonesian rupiah rose slightly, by three points, to close at Rp13,186 per dollar in the Jakarta inter-bank spot market on Friday evening, compared to the previous close of Rp13,189 per dollar.

The 12th tranche of economic policy packages announced by the government on Thursday managed to maintain the rupiah in a positive zone, money market observer Rully Nova of Bank Himpunan Saudara told Antara as quoted by Mi’raj Islamic News Agency (MINA) here on Friday.

The policy package aimed at improving the ease of doing business has received positive responses from investors, he said.

“With the increasing business activities in the country, these packages are expected to spur the domestic economy and attract more foreign investment to Indonesia,” he said.

On Thursday, the government announced the 12th tranche of economic policy reforms aimed at slashing the number of permits, simplifying procedures of issuing permits and cutting licensing fees to improve the countrys ease of doing business rating.

He said the global oil prices which tend to increase have helped commodity currencies, including the rupiah, to remain in the positive zone.

WTI Crude rose 0.87 percent to US$46.43 per barrel and Brent Crude increased 0.48 percent to US$48.37 per barrel on Friday evening.

Chief researcher of Monex Investindo Futures Ariston Tjendra said the US dollar weakened against some of global currencies after the US announced the economic growth was lower than projected.

“The sentiment has given a room to the currencies of developing nations including the rupiah to strengthen,” he said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)