Rupiah exchange rate against the US Dollar (USD) fluctuated in trading today, Tuesday (24/4). Rupiah opened at the level of Rp 13,922 or only able to strengthen slightly compared to the close of trading yesterday at Rp 13.975 per USD.
Center for Economic Reform on Economics (CORE), Piter Abdullah, said that the weakening of the rupiah against the USD is not too worrisome. According to him, the exchange rate touched Rp 14,000 per USD-was also still normal.
"If Rp 14,000 is no problem, the actual increase is very small compared to Rp 13,800," he said in Hong Kong Cafe, Jakarta, Tuesday (24/4).
Nevertheless, the weakening of the rupiah should still be wary because it affects the psychology of the market. One of the things that must be considered by the government is not to weaken the rupiah this makes the market panic.
"From the side of the number is not (problem), but the worrying is the psychological impact at Rp 14,000 how the market response, if the market is panic that makes danger," he said.
Therefore, he believes Bank Indonesia will try to keep the rupiah exchange rate from continuing to weaken, let alone to pass Rp 14,000. "I am convinced that BI is trying to keep it from passing from Rp 14,000, which is what Bank Indonesia does in the week this week, which will make every effort with intervention to prevent it from passing Rp 14,000," he said.
"BI will try to withdraw (exchange rate) around Rp 13,800 so that it will give confidence that Bank Indonesia is in the market, so next month ahead of the Fed deciding to raise or hold market interest rate is no longer panic," he added.
He predicts that BI will use foreign exchange reserves to intervene to stabilize the exchange rate, then the position of Indonesia's foreign exchange reserves is still quite safe. Because, according to him Indonesia's current foreign reserves of USD 130 billion is still very large. So it will not be disturbed.
"Our foreign exchange reserves are now so far above the current trend that we have the highest international reserves of over USD 130 billion, this is far above our needs, so suppose that if we reduce USD 20 billion (for intervention) problem, "he said.