REPUBLIKA.CO.ID, JAKARTA – Bank Indonesia (BI) is urged to maintain the range of Indonesian rupiah (IDR) exchange rate to USD under 9.500 IDR. BI and government are also expected to ensure the investors of Indonesian economy.

BI’s intervention to the market would resist the rupiah’s decreasing exchange rate, the Director Treasury Financial Institution and Special Asset Management of Bank Mandiri, Royke Tumilaar, said. BI will be supported by banking industries to withstand the declining IDR.

The President Director of Minna Padi Investama, Djoko Joelijanto, said European crisis also forced some local companies to postpone their initial public offering (IPO) in Indonesia Stock Exchange (IDX).

According to data obtained by BI, rupiah exchange rate to USD on early May is 9,225 IDR-9,250 IDR. On the second week, the range increases to 9,300 IDR. But on the third week, the intervention pulls the rupiah to 9,225 IDR. However, it now backs to 9,300 IDR.

Yet, Coordinating Minister of Economy, Hatta Rajasa, claimed the IDR condition was usual. He still believes that central bank could maintain the exchange rate.

The Governor of BI, Darmin Nasution, said the exchange rate movement indeed weakened on the first quarter of 2012. The pressure comes from the adjustment of foreign investors portfolio caused by global sentiment and the expectation of local increasing inflation.

“The declining value happens not only in Indonesia, but also in some world exchange rates due to the weakening of global economy,” the Deputy Governor of BI, Halim Alamsyah, said.

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