REPUBLIKA.CO.ID, JAKARTA -- Rupiah continued to decline and reached Rp 14 thousand per US dollar. Various circles predicted that rupiah is heading to a new equilibrium. However, how much is the equilibrium are yet to be known.

Member of Commission XI, House of Representatives, Johnny G Plate, predicted the weakening rupiah will be continued. "To hold it, Bank of Indonesia (BI), Financial Services Authority (OJK), and the Ministry of Finance should have integrated coordination, to be able to withstand the weakening of rupiah," he said, Monday (24/8).

The world monetary landscape was changing so fast. Yuan (Chinese currency) has just experienced a devaluation, followed by Dong (Vietnamese currency), and Tenge (Kazakhstan currency).

At the same time, Federal Reserve policy of the Fed about the raising interest rates was on an unclear direction. "They were just delivered to the money market that they will raise the interest rates, but the time of the increase is not yet known," said Johnny.

The uncertainty was affected the market psychologically. "These all have an impact on the resilience of rupiah," he added.

Strengthening of the US dollar was not only happening in the Indonesian currency. Malaysia has also the same experience , even Malaysian currency weakened more than Indonesian.

The weakening of rupiah was at a similar level in 2003. "But it seems there is still uncertainty in global financial markets, as well as in the country, so the weakening of rupiah could still continue," he said.

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