Bank Indonesia’s Senior Governor, Destri Damayanti, stated that this morning’s press conference regarding the 2025 State Budget succeeded in calming the depreciation of the rupiah that had been occurring in recent days. The conference, attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Sri Mulyani, and Financial Sector Task Force member Thomas Djiwandono, resulted in the strengthening of the Garuda currency.
“Today’s press conference between current and incoming government officials has had a significant impact. The market is more stable, and the rupiah strengthened,” Destri said during a meeting with the House of Representatives Commission XI in Jakarta on Monday (June 24, 2024).
Destri mentioned that the government’s explanations have reassured investors about the future fiscal management of Indonesia. The market’s confidence has led to the strengthening of the rupiah compared to neighboring countries.
According to Refinitiv, the rupiah finally strengthened against the US dollar after several days of weakening, reaching a level of Rp 16,390/US$ on Monday (6/24/2024), with a 0.3% increase. Previously, the rupiah had touched its weakest point at Rp 16,470/US$.
Meanwhile, the DXY at 3:00 PM WIB dropped to 105.67, a decrease of 0.12 compared to the previous day’s closing at 105.79.
Earlier in the morning, Airlangga, Sri Mulyani, and Tommy Djiwandono held a press conference at the headquarters of the Directorate General of Finance Ministry. During the press conference, Sri Mulyani affirmed that communication between President Joko Widodo’s administration and President-elect Prabowo Subianto’s coordination team is going smoothly.
She confirmed that Prabowo’s flagship program, free nutritious meals, is included in the 2025 State Budget draft and will not cause a ballooning budget deficit. Meanwhile, Thomas Djiwandono also assured that the government of the elected president will adhere to the deficit limits in the State Budget and commit to continued fiscal management with discipline.
Source: CNBC Indonesia
