TEMPO.CO, Jakarta - Rupiah strengthened by 115 points to Rp16,595 per U.S. dollar this afternoon, March 3, 2025, after previously strengthening to Rp16,480.
Currency observer Ibrahim Assuaibi estimated that the rupiah will keep fluctuating tomorrow but “close stronger between Rp16,430 and Rp16,490."
Ibrahim attributed the stronger currency to a number of reasons, including the Government Regulation No. 8 of 2925 on the retention of foreign exchange from natural resource exports.
This regulation took effect on March 1, 2025, and stipulated that exporters must hold all proceeds onshore for a whole year. “The new regulation is intended to strengthen Indonesia’s foreign exchange reserves amid the current market turmoil," said Ibrahim.
Second, Ibrahim said, Indonesia's manufacturing sector also experienced significant growth in February 2025. This growth was driven by increasing domestic demand and producer optimism. According to a report by S&P Global, Indonesia's Manufacturing Purchasing Manager's Index (PMI) reached 53.6, up from 51.9 in January 2025.
According to Ibrahim, this growth reflects a clear improvement in the health of the goods manufacturing sector. The increase in new demand, which reached the highest level in almost a year, became a major driving factor for growth. "In addition, purchasing activity and employment also recorded significant improvement."
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