18 hours ago
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March 25, 2025 | 09:08 pm
TEMPO.CO, Jakarta - The rupiah closed weaker at Rp16,612 at the end of trading on Tuesday, March 25, 2025. The depreciation was influenced by global geopolitical tensions and sentiments from Indonesia’s new sovereign wealth fund, Daya Anagata Nusantara (Danantara).
At yesterday’s trade, rupiah closed at Rp16,567 per US dollar. Currency observer Ibrahim Assuabi said on Tuesday that the currency will fluctuate still “in the range of Rp16,610-Rp16,660 per US dollar."
According to Ibrahim, both global and domestic sentiments affect rupiah’s movement tomorrow. As U.S. President Donald Trump will soon impose car tariffs, the global trade has been shaken for several weeks.
Furthermore, the cautious approach of the Federal Reserve in cutting interest rates may have prevented further bearish or pessimistic market sentiments. Investors are also monitoring discussions to end the war in Ukraine.
U.S. and Russian officials concluded talks for a day last Monday focused on a narrow proposal for a ceasefire at sea between Kyiv and Moscow. As part of diplomatic efforts, it is hoped that Washington will help pave the way for broader peace negotiations.
Global challenges are marked by the strengthening trend of trade protectionism, along with various difficult domestic variables that complicate Indonesia’s economy.
"The economic growth target above 5 percent this year is merely a dream,” he said.
Previously, Ibrahim also mentioned that today's depreciation of the rupiah was influenced by several factors at the domestic level, one of which is the formation of Danantara. Additionally, Prabowo’s remark that stocks are a gamble or how the plummeting IHSG is in no way related to the lower class weighed on investors.
Therefore, Ibrahim said, many foreign investors are leaving the Indonesian capital market. On the other hand, foreign capital once again exited Indonesia after the announcement of Danantara’s management yesterday, to avoid government intervention in the capital market. "Because they foresee the government will intervene, as even the Criminal Investigation Department makes a statement that it will supervise the capital market," he said.
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