A teller officer calculates the rupiah currency. (illustration)
The exchange rate of rupiah traded interbank in Jakarta on Thursday (18/1), moved up by seven points to Rp 13,352 compared to the previous position at Rp 13.359 per US dollar. "Money market participants responded positively to some good news from within the country such as the positive assessment of the improvement of the balance of trade in 2017 which recorded a surplus of three consecutive years, it is still a buffer for the rupiah movement," said Binaartha Sekuritas Reza Priyambada analyst in Jakarta, Thursday (18 / 1).
Central Bureau of Statistics (BPS) recorded Indonesia's trade balance in 2017 surplus of 11.84 billion US dollars, up compared to a surplus in 2016 which amounted to 9.53 billion US dollars. He added that the national economic growth which is expected to grow in line with the implementation of Pilkada, helped maintain domestic currency fluctuations.
"Pilkada implementation is believed to encourage consumption in the country which ultimately encourages the national economy," he said.
In addition, he added, domestic sentiments regarding the signing of one Text of Amendment of Contract of Work (KK) and 18 Manuscripts of Working Agreement on Coal Mining Concession (PKP2B) also gave hope for improvement of national economy. "The signing of the amendment is expected to increase state revenue from the mining sector," he said.
Samuel Sekuritas economist Ahmad Mikail said that the rupiah's currency is moving strongly supported by positive sentiment from commodity prices that are still in a strengthening trend, the situation is helping the performance of Indonesian exports. "In addition, foreign investors who re-enter the stock market also helped strengthen the rupiah currency," he said