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February 27, 2025 | 06:04 pm
TEMPO.CO, Jakarta - Rupiah closed 73 points weaker in Thursday's afternoon trading on February 27, 2025. The rupiah had dropped by 80 points to Rp16,454 against the U.S. dollar from the previous close at Rp16,380.
Currency observer Ibrahim Assuabi said for tomorrow's trading, the rupiah is predicted to fluctuate but remains in a weakening trend in the range of Rp16,440 - Rp16,500 against the U.S. dollar.
According to Ibrahim, the weakening of the rupiah is influenced by several external factors, one of which is the release of consumer confidence data in the United States which was weaker than expected in February. "This increases concerns about the slowing private consumption in the U.S., which is their main economic driver," Ibrahim said in his statement on Thursday, February 27, 2025.
He added that private spending in the U.S. is under pressure from the tariffs imposed by President Donald Trump, high inflation, and rising food prices. This situation has sparked speculation that the Federal Reserve will cut interest rates quicker than expected. "The additional tariff threats from Trump against Europe, as well as the potential extension of tariff deadlines for Canada and Mexico until April, are also factors affecting the market," he said.
Additionally, the decision of the U.S. Republican-controlled House to approve a $4.5 trillion tax cut package and border security measures is also attracting market attention. The geopolitical situation, he said, including Trump's initiated peace talks between Russia and Ukraine, also remains a factor that can influence global currency movements.
Meanwhile, the internal factors influencing the rupiah's movement today, according to Ibrahim, the ambition of Indonesia's economic growth is being considered by the market. President Prabowo Subianto in the Medium-Term National Development Plan (RPJMN) 2025-2029 has set the target for economic growth to reach 8 percent in 2029.
"The economic growth of 2025 is targeted at 5.3 percent, higher than the assumption in the 2025 State Budget (APBN) of 5.2 percent. Furthermore, 2026 is targeted to grow by 6.3 percent, 2027 by 7.5 percent, 2028 by 7.7 percent, and to reach 8 percent in 2029," said Ibrahim.
He believes macroeconomic policies supported by adaptive fiscal, monetary, and structural reform policies will be the main capital in achieving high, inclusive, and sustainable growth. "The increase in the proportion of the middle class, which accounts for 72.20 percent of the total population, has contributed 82.30 percent to national household consumption in 2023. This is an important factor in supporting stable economic growth," he said.
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